Government announces details of first CUSMA compensation for dairy producers; funding for dairy research cluster


The Government of Canada has released details on the fifth compensation payment for dairy producers under the Dairy Direct Payment Program (DDPP). From 2019-2023, the first four payments were made available totalling $1.75 billion in compensation to account for the impacts of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

This fifth payment begins compensation of up to $1.2 billion over six years to account for the impacts of the Canada-United States-Mexico Agreement (CUSMA), the government says.

Producers must hold a valid dairy quota licence registered with a provincial milk marketing board or agency on August 31 to be eligible for a payment that year. As the calculation date impacts when the registration period can open, setting the date earlier in the year (previous years used an October 31 date) will ensure producers have more time to sign up before the deadline and may receive their payment sooner, the government says.

Agriculture and Agri-Food Canada will be sending letters to all eligible producers in the fall with the program registration details, with payments to follow once a producer completes their registration.

Also announced today is $7.5 million in funding to Dairy Farmers of Canada (DFC) through the AgriScience Program โ€“ Clusters Component, under the Sustainable Canadian Agricultural Partnership.

DFC will use the funds to undertake research and develop plans to reduce greenhouse gas emissions and sequester carbon, improve the health and welfare of cows, and the quality of milk produced.

The outcomes are intended to help the industry achieve its goal of reaching net-zero greenhouse gas emissions from dairy production by 2050.

Wake up with RealAgriculture

Subscribe to our daily newsletters to keep you up-to-date with our latest coverage every morning.

Wake up with RealAgriculture

Please register to read and comment.


Register for a RealAgriculture account to manage your Shortcut menu instead of the default.