Canada compensates dairy farmers who experienced market upsets due to new trade deals

Canada's Agriculture Minister is taking the next step in compensating Canada's dairy farmers under the Dairy Direct Payment Program.
calendar icon 20 January 2021
clock icon 2 minute read

The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, announced that 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. 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 31 March 2021.

This next step builds on the Minister’s announcement on 28 November 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.

“Dairy production is a cornerstone of our rural regions. By sending the letters about the second compensation payment, our Government has taken an important step in providing full and fair compensation to dairy farmers. We will continue to ensure that our supply-managed producers have the tools they need to succeed for generations to come,” Minister Bibeau said.

Minister Bibeau made the announcement during roundtable discussions today with supply-managed farmers from the Quebec towns alongside Member of Parliament for Châteauguay—Lacolle, Brenda Shanahan, Member of Parliament for Vaudreuil—Soulanges, Peter Schiefke, and Member of Parliament for Brome-Missisquoi, Lyne Bessette. Discussions also focused on challenges supply-managed farmers are facing, intergenerational transfers, sustainability and the environment.

The Government of Canada recognises that Canada’s supply managed farmers are drivers of the Canadian agriculture sector and the economy. Canadian farmers continue to deliver the best quality products to our grocery store shelves and kitchen tables, while continuing to face the challenges of the COVID-19 pandemic. The strength of the sector is essential to the vitality of our farms and rural regions across the country.


  • 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.
  • Furthermore, 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 processors of supply managed products.
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