Fourth compensation round now open for dairy farmers

OTTAWA – The fourth payment under the Dairy Direct Payment Program (DDPP) is now available to dairy producers.

Dairy farmers will receive compensation payments based on their milk quota. For example, the owner of an 80-head dairy farm will receive $38,000 in direct payment compensation. The compensation for this fourth round of payments totals up to $468 million.

To get their payment, producers must register through the Canadian Dairy Commission before March 31. Agriculture and Agri-Food Canada has mailed letters to all eligible dairy producers with instructions on the application process.

This fourth payment completes compensation to dairy producers for the impact of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

The federal government recently announced compensation of up to $1.2 billion over six years under the DDPP to account for the impacts of the Canada-United States-Mexico Agreement (CUSMA).

As of 2024, the owner of a farm with 80 milking cows may receive compensation through a direct payment of about $106,000 in six yearly instalments on a declining scale. These funds give producers the flexibility to invest according to their individual needs.

Through the 2022 Fall Economic Statement, the Government of Canada announced up to $1.7 billion in compensation to supply-managed sectors for the impacts of CUSMA. 

With this announcement, the government delivers on its commitment to fully and fairly compensate producers and processors impacted by CETA, CPTPP and CUSMA, officials say.