Dairy, egg, and poultry farmers will be compensated in this year’s budget just revealed by Finance Minister, Bill Morneau. The compensation is for losses stemming from international trade agreements. The Liberal government has proposed up to $3.9 billion in “support” for supply-managed farmers.
The funding follows the recent ratifications of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), and the ongoing negotiation of the Canada-United States-Mexico Agreement (CUSMA) which saw the removal of the Class 7 milk class.
According to the budget outline, up to $2.4 billion will be made available to sustain the incomes of those in supply-managed farms who were affected by the change. However, of that amount, $250 million has already been provided to producers, meaning a net amount of up to $2.15 billion will be available in coming years to deal with income losses associated with the trade agreements.
Farmers who made investments in the supply-managed sectors, will be offered assistance of approximately $1.5 billion through a Quota Value Guarantee Program that will protect against reduction in quota value when the quota is sold.
The government also reassured Canadians it will continue to work in partnership with supply management stakeholders to address the impacts on processing, as well as potential future impacts of CUSMA.