Latest round of compensation already delivered to more than 50% of Canadian dairy farmers

OTTAWA, ON, Feb. 10, 2021 /CNW/ - Today, the Minister of Agriculture and Agri-Food, the Honourable 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. Minister Bibeau made the announcement as part of a keynote speech to the Dairy Farmers of Canada at their Annual General Meeting.

With these direct payments the Government of Canada is delivering on its commitment to provide full and fair 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 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.

Canada's supply managed farmers are the backbone of rural communities across the country, and help ensure a strong Canadian economy and agriculture sector. Throughout the COVID-19 pandemic, these farmers have consistently demonstrated their outstanding commitment to providing high-quality products to the Canadians who rely on them.

Quote

"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."
-       The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food

Quick Facts

• 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.
• There are 10,095 dairy farms in Canada, supporting close to 19,000 direct jobs on farms. The demand for Canadian dairy remains strong, and has led to a 9% increase in raw milk production between 2016 and 2019.
• There are over 4,750 chicken, egg, broiler hatching egg, and turkey farmers across Canada. These farmers generated over $4.9 billion in farm cash receipts in 2019, totalling 7.4 percent of all farm cash receipts in Canada. According to industry, Canada's poultry and egg sector supports more than 140,000 direct and indirect jobs.
• Details of federal compensation programs for chicken, egg, turkey and broiler hatching egg producers, totaling $691 million over ten years, are being discussed in consultation with industry representatives. These consultations are progressing well, further program details  expected to be available this spring.

Additional Links 

• Government of Canada takes next step in compensating Canada's dairy farmers 
• Government of Canada announces investments to support supply-managed dairy, poultry and egg farmers
• Supporting Canada's supply-managed sectors
• Dairy Direct Payment Program

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SOURCE Agriculture and Agri-Food Canada