Trade Deals Spark More Compensation for Canada Dairy Farmers

Agriculture and Agri-Food Canada will provide $1.75 billion to dairy farmers to offset changes to market access in recent trade agreements.  Canada is allowing other nations more access to enter the Canadian dairy market as a result of the trade agreements.  Through Canada’s supply management system, the funds will be distributed to nearly 11,000 dairy farmers.


$345 million will be paid in the first year in the form of direct payments and will benefit all dairy producers in proportion to their quota held.  The federal government will continue to work with Dairy Farmers of Canada to determine terms and conditions for future years.


Dairy Farmers of Canada welcomed the announcement, saying the funds will help mitigate the impact of trade agreements, such as the Canada-European Union Comprehensive Economic and Trade Agreement, the Comprehensive and Progressive Trans-Pacific Partnership Agreement and the U.S.-Mexico-Canada Agreement.  The three agreements are estimated to contribute to an 8.4 percent loss of domestic market access for Canadian dairy farmers.


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