Canada announces more compensation for dairy farmers

Farmers to receive compensation based on dairy quota
calendar icon 22 December 2022
clock icon 2 minute read

Canada's Minister of Agriculture and Agri-Food, Marie-Claude Bibeau, announced that the fourth payment under the Dairy Direct Payment Program (DDPP) is now available to dairy producers.

Dairy farmers will receive compensation payments based on their milk quota. For example, the owner of an 80 head dairy farm will receive $38,000 in direct payment compensation. The compensation for this fourth round of payments totals up to $468 million.

This fourth payment completes full and fair compensation to dairy producers for the impact of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The government of Canada recently announced compensation of up to $1.2 billion over six years under the DDPP to account for the impacts of the Canada-United States-Mexico Agreement (CUSMA).

As of 2024, the owner of a farm with 80 milking cows may receive compensation through a direct payment of about $106,000 in six yearly instalments on a declining scale. These funds give producers the flexibility to invest according to their individual needs.

Through the 2022 Fall Economic Statement, the Government of Canada announced up to $1.7 billion in compensation to supply-managed sectors for the impacts of CUSMA. With this announcement, the Government delivers on its commitment to fully and fairly compensate producers and processors who have lost market share under CETA, CPTPP and CUSMA. The total compensation will reach up to $4.8 billion.

The government of Canada firmly believes that Canada's supply-managed sectors are the pillars of rural communities' vitality. The system provides producers with the opportunity to receive fair returns on their labour and investments, while consumers benefit from a steady supply of high-quality products.

"We made a promise, and we kept it," said Bibeau. "Our government committed to fully and fairly compensate supply-managed sectors after the ratification of trade agreements. The payment at the beginning of 2023 completes the compensation of dairy producers for the CETA and CPTPP. As of next year, and until 2029, they will receive compensation for CUSMA. I also reiterate our government's commitment not to concede any further market shares under supply management during future trade negotiations."

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