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Canada takes next step in compensating Canada's dairy farmers

Christian Fernsby |
Agriculture and Agri-Food Canada has mailed letters to all dairy producers that gives them directions on how to access the second payment under the Dairy Direct Payment Program.

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Topics: CANADA   

Dairy farmers will receive, on the basis of their milk quota, cash payments of $468 million in 2020-21, $469 million in 2021-22, and $468 million in 2022-23. In order to receive their payments, producers must register for the program through the Canadian Dairy Commission prior to March 31, 2021.

This next step builds on the Minister's announcement on November 28, 2020 to deliver the promised full and fair compensation valued at $1.75 billion to dairy producers for the 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) over the course of four years instead of eight.

The Government of Canada is also moving forward with consultations with chicken, egg, turkey and hatchery egg sector representatives on the design of the $691-million, 10-year compensation programs, which were also announced by Minister Bibeau in November 2020.

Responding to sector demands, these programs will help drive innovation and market development for farmers. Consultations are expected to conclude early this year, and program details will be announced as soon as possible.

In August 2019, Minister Bibeau announced that $1.75 billion would be provided to compensate Canadian dairy farmers over eight years. Between December 2019 and January 2020, more than 10,000 dairy farmers received a cash payment of $345 million.

The Government has set a schedule to deliver the remaining $1.405 billion through direct payments to farmers over a timeline of only three years. There are 4,800 chicken, egg, broiler hatching egg, and turkey farmers across Canada.

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