October 5, 2015 – Ottawa, Ontario – Agriculture and Agri-Food Canada
The Government of Canada is providing new programs for dairy, chicken, turkey, egg and hatching egg producers as the implementation of the Trans-Pacific Partnership (TPP) and the Canada-European Union Trade Agreement proceeds. The Trans-Pacific Partnership will secure new market access opportunities for Canadian dairy, poultry and egg exports. Dairy, poultry and egg producers and processors will benefit over time from increased duty-free access to the United States and all other TPP countries.
The Income Guarantee Program and the Quota Value Guarantee Program have been approved by Cabinet and will be available the day the TPP comes into force.
Income Guarantee Program
What will it cover?
The Income Guarantee Program will keep producers whole by providing 100 per cent income protection to producers for 10 years. Income support assistance will continue on a tapered basis for an additional five years, for a total of 15 years. $2.4 billion is available for this program. Annual payments will be directly linked to the amount of quota a producer holds.
The Income Guarantee Program transfers with the sale of the quota, meaning that if the quota is sold at any point in the 15-year period, the remaining direct payments linked to that quota will transfer to the new quota holder.
What are the estimated payments producers will receive?
The following examples provide an estimate of the total compensation the typical producer may receive over the 15-year period. These amounts will vary by individual producer, depending on their level of production:
- A typical dairy farm could expect to receive approximately $165,600
- A typical chicken farm could expect to receive approximately $84,100
- A typical turkey farm could expect to receive approximately $88,000
- A typical egg farm could expect to receive approximately $71,500
- A typical hatching egg farm could expect to receive approximately $191,700
When will the program come into effect?
Annual payments will begin when TPP comes into force. There will be an application process designed to limit the administrative burden on producers which will be developed in consultation with the Canadian Dairy Commission and the Farm Products Council of Canada.
How are the income guarantee payments calculated?
The income guarantee payments will be calculated based on expected domestic production levels under conditions with TPP and the Canada-EU Trade Agreement in place. A model will be used that takes into account detailed historic economic and farm level data, projected into the future.
Quota Value Guarantee Program
What will it cover?
The Quota Value Guarantee Program will protect producers against reduction in quota value when the quota is sold following the implementation of TPP, and $1.5 billion has been set aside for this demand-driven program that will be in place for 10 years.
When will the program come into effect?
The Quota Value Guarantee will come into effect once TPP comes into force.
How will quota value be calculated?
Agriculture and Agri-Food Canada along with the Canadian Dairy Commission and the Farm Products Council of Canada will work with industry to develop the appropriate mechanism to operationalize the Quota Value Guarantee Program.
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Contacts
Media Relations
Agriculture and Agri-Food Canada
Ottawa, Ontario
613-773-7972
1-866-345-7972
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