Half Of Dairy Farmers Have Received Compensation

Feb 12, 2021

Minister of Agriculture and Agri-Food, Marie-Claude Bibeau, announced that 5,054 Canadian dairy farmers have already received their payments, totalling $267.1 million, under the second year of the Dairy Direct Payments Program. This represents roughly 51% of the more than 10,000 dairy farmers across the country. Bibeau made the announcement as part of a keynote speech to the Dairy Farmers of Canada at their Annual General Meeting.

“Our Government is moving full steam ahead to ensure that supply-managed sectors receive full and fair compensation that gives them the predictability and support necessary for their success for generations to come. More than 50% of producers have already received their second payment. The Government continues to work tirelessly to ensure that dairy, poultry and egg producers remain resilient and prosperous,” said Bibeau.

The Government of Canada is providing compensation to supply-managed sectors for market access concessions made under the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Dairy farmers will receive $1.75 billion in direct payments over the course of four years, with $345 million made available in year one (2019-20) and $468 million currently available under year two of the program. Another $469 million will be available in 2021-22, and $468 million in 2022-23. The owner of a farm with 80 dairy cows will be awarded compensation in the form of a direct payment of approximately $38,000 for each of these remaining years.

These amounts also build on the $250 million CETA on-farm investment program, and provide certainty on the schedule and form of remaining payments in the $2 billion total compensation package for dairy farmers.

The Government of Canada says it remains committed to engaging the sector on full and fair compensation for the Canada-United States-Mexico Agreement (CUSMA), and to providing compensation to processors of supply-managed products.

Letters were mailed to all Canadian dairy producers in January to provide them with directions on how to register for this second payment. Producers must register through the Canadian Dairy Commission prior to March 31, 2021 to receive a payment under this program year.

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