Third payment to Canadian dairy producers set to roll out


The Dairy Direct Payment Program is set to begin sending out a total of $469 million to dairy producers across Canada.

The program is a $1.75 billion compensation package for dairy producers 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).

This is the third payment under the program. To receive their payment, producers must register through the Canadian Dairy Commission prior to March 31, 2022.

As an example, the owner of a farm with 80 dairy cows will be awarded compensation in the form of a direct payment of approximately $38,000 each year.

Eligible producers will receive letters from Agriculture and Agri-Food Canada (AAFC) with directions on how to access the payment.

Another $468 million will be available in 2022-2023, says AAFC.

The original payout timeline was eight years, however all payouts are scheduled for the end of 2023, a four-year roll out.

AAFC also notes that the Government of Canada is working with supply-managed sectors to determine “full and fair compensation” for the impacts of the Canada-United States-Mexico Agreement (CUSMA), that came into effect July 1, 2020.

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