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.
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.