Dairy Direct Payment Program – Agriculture and Agri-Food Canada (AAFC) (2022)

Description:

The Dairy Direct Payment Program provides full and fair compensation to dairy producers as a result of market access commitments made under recent international trade agreements, namely the Canada–European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Comments on Funding:

A registered producer will receive a payment in proportion to the quota they hold.

Eligibility:

Applicants must be:

  • producers of cow’s milk with a valid dairy quota license registered with a provincial milk marketing board/agency as of October 31 of each year. This includes producers under a new entrant assistance program with loaned quota and/or whole-farm leases with loaned quota as of October 31 of each year.
  • an individual and/or legal entity capable of entering into legally binding agreements / contracts. This would include sole proprietor businesses, partnerships or corporations.
  • register every year of the program to receive a payment.

Applicants who sold their farm and no longer hold quota as of October 31, you are not eligible to receive a payment for that year.

Applications Steps:

Other Things to Note:

  1. The payment schedule for the remaining $937 million in direct payments over the next 2 years is: $469 million in 2021-2022 and $468 million in 2022-2023. The full amounts announced are available to producers in the form of direct payments.
  2. To receive a payment, eligible producers must register with the program each year. Completed registrations must be signed and returned no later than March 31 of each year.
  3. The amount of the quota held according to the provincial milk marketing board or agency will be considered final. In the event:
  • of a whole farm lease (where 100% of the quota is leased from one producer to another for an extended period of time and is not related to a catastrophe such as a fire, sickness of the herd, or of the producer) the lessee will receive the program payment. This does not apply in the case of partial leases.
  • where a producer temporarily leases their own quota or a portion of their own quota to another producer for reasons such as fire, illness with herd or illness of owner, the owner of the quota will receive the program payment.
  1. The Canadian Dairy Commission (CDC) will calculate individual payments based on the percentage of each holder’s quota relative to the provincial quota as of October 31 of each year. The CDC will work closely with each of the provincial milk marketing boards to deliver the funding.

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