Dairy Direct Payment Program
Canada
Payments to support dairy producers
grant_single_labels|summary
grant_single|eligibleFinancing
- grant_single|noCondition
grant_single|deadlines
- grant_single|openingDateNovember 08, 2023
- grant_single|closingDateMarch 31, 2024
- grant_single|grantStatusClosed
grant_single|financingType
Grant and Funding
grant_single|eligibleIndustries
- Agriculture, forestry, fishing and hunting
grant_single|grantors
- Government of Canada
- Canadian Dairy Commission (CDC)
grant_single|status
grant_card_status|closed
grant_single_labels|preview
Register annually to receive payments if you have a valid dairy quota license registered with a provincial milk marketing board or agency. Payments are based on your farm’s quota relative to the provincial quota holdings, with no maximum amount.
grant_single_labels|terms_and_conditions
The Dairy Direct Payment Program ensures structured financial support through direct payments to dairy producers affected by international trade agreement commitments. The funding is allocated on the basis of milk quota, ensuring equitable distribution to eligible producers.
- Total funding of $1.2 billion is distributed over six years, commencing in fall 2023.
- In 2023-24, $300 million is available for direct payments.
- Annual funding amounts decrease over the subsequent five years, from $250 million (2024-2026) to $100 million (2028-2029).
- Payments are calculated based on each producer's milk quota allocations.
- Provincial allocations are determined and distributed accordingly, with specified shares for each province from the total fund.
- Annual registration is required for producers to receive payments.
grant_single_labels|projects
grant_single|admissibleProjectsExample
$ 112,500
Implement sustainable dairy farming practices to reduce environmental impact
$ 150,000
Expand barn facilities to accommodate growing herd sizes
$ 90,000
Purchase new milking equipment to enhance dairy production efficiency
$ 135,000
Upgrade dairy processing facilities to meet new health regulations
$ 97,500
Install solar panels to power dairy farm operations and reduce energy costs
$ 75,000
Develop an educational outreach program for sustainable dairy farming
grant_single_labels|admissibility
Eligibility for the Dairy Direct Payment Program is defined by specific criteria related to the dairy producers' profile and quota holdings.
- The applicant must be a supply-managed cow’s milk producer.
- The applicant must hold a licensed milk quota as reported by the provincial milk marketing boards.
- The applicant must register annually to receive payments under the program.
grant_eligibility_criteria|who_can_apply
Eligible dairy producers can apply for the Dairy Direct Payment Program to receive financial support based on their milk quota. The program aims to assist supply-managed cow’s milk producers impacted by recent international trade agreements.
- Supply-managed cow’s milk producers
grant_eligibility_criteria|who_cannot_apply
Based on the grant context, there is no mention of specific types of companies that are not eligible for the Dairy Direct Payment Program grant.
grant_eligibility_criteria|eligible_expenses
There are eligible expenses for this grant. Eligible expenses include:
- Direct payments to eligible supply-managed cow’s milk producers
grant_eligibility_criteria|zone
This grant specifically targets geographical areas within Canada to support dairy producers based on regional allocation quotas. The funding distribution is aimed at aligning with provincial dairy production capacities.
- Newfoundland and Labrador.
- Prince Edward Island.
- Nova Scotia.
- New Brunswick.
- Quebec.
- Ontario.
- Manitoba.
- Saskatchewan.
- Alberta.
- British Columbia.
grant_single_labels|criteria
There are evaluation and selection criteria for this grant.
- Dairy producers must be supply-managed cow’s milk producers.
- Registrations must be signed and received by March 31, 2024, to receive a payment.
- Eligible producers must register every year of the program to receive a payment.
grant_single_labels|register
- Step 1: Eligibility Verification
- Verify that you are a licensed quota holder as per the information provided by your provincial milk marketing board.
- Confirm your eligibility based on the general criteria outlined in the program details.
- Step 2: Registration Preparation
- Ensure you have all necessary information regarding your milk quota for registration.
- Check for any updates or additional requirements specified by the Canadian Dairy Commission (CDC).
- Step 3: Registration Submission
- Submit your registration to the Canadian Dairy Commission by the deadline (e.g., before March 31, 2024 for the 2023-24 payment).
- Ensure all information regarding your quota holdings is accurate and up-to-date.
- Step 4: Confirmation and Follow-Up
- Receive confirmation from the CDC upon successful registration.
- Follow up with the CDC if you do not receive confirmation or if there are any discrepancies.
grant_single_labels|otherInfo
Here are additional relevant details for this grant:
- The 2023-24 payment allocation for each province is based on the percentage share of the national quota (P10), ensuring proportional distribution relative to milk production.
- This program is facilitated by the Canadian Dairy Commission (CDC), which collaborates with provincial milk marketing boards to streamline the distribution of funds.
- Payments are calculated based on the licensed quota holders' percentage of provincial quota holdings.
- From 2019-23, the program has previously disbursed $1.75 billion under similar compensation schemes related to other trade agreements such as CETA and CPTPP.
- The intake period for the current funding year is closed; however, producers must register annually to qualify for payments.
Apply to this program
Understanding the Dairy Direct Payment Program
The Dairy Direct Payment Program offers financial compensation to dairy producers affected by Canada's international trade agreements, particularly in relation to the Canada-United States-Mexico Agreement (CUSMA). By distributing funds based on milk quota holdings, the program seeks to provide economic support and stability to the dairy industry amidst these trade impacts.
Detailed Insights into the Dairy Direct Payment Program
The Dairy Direct Payment Program is a strategic initiative established to mitigate the economic impact of market access commitments undertaken by Canada through recent international trade agreements. Specifically, the program addresses the concerns of the dairy industry by offering a series of direct payments totaling $1.2 billion over a six-year period, commencing in the fall of 2023. The program is carefully designed to distribute annual payments to eligible dairy producers, with the 2023-24 fiscal year seeing an allocation of $300 million. Producers receive payments predicated on the amount of milk quota they hold, a system that ensures the aid is proportionately distributed based on individual production capabilities. For the 2023-24 period, each eligible producer must have their registration signed and submitted by March 31, 2024, to qualify for that year’s payment. The payments are structured to provide decreasing amounts over the subsequent years, reflecting the transitional nature and objectives of the financial aid. Specifically, the planned yearly distributions are set at $250 million for 2024-25 and 2025-26, followed by $150 million in 2026-27 and 2027-28, and concluding with $100 million in 2028-29.The fund distribution also takes into account regional quotas, with the national allocation broken down provincially. This is to ensure that allocation percentages reflect each province's contribution to the national milk supply. In the 2023-24 term, Quebec and Ontario receive the largest allocations, reflective of their significant dairy production capacities. With Quebec securing $111,072,244 and Ontario $96,366,142, these provinces together represent a major portion of the Canadian dairy output.Previously, from 2019 to 2023, the Dairy Direct Payment Program allocated $1.75 billion to mitigate the impacts of other major trade agreements, such as the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This history of support underscores the commitment by Canadian authorities to cushion domestic producers from external economic pressures.The Canadian Dairy Commission (CDC) oversees the delivery of this program. Through its established network and data collection systems, such as collaborating with provincial milk marketing boards, the CDC calculates individual payments and expedites the distribution of funds. This collaboration ensures that the program efficiently supports dairy producers by leveraging regional expertise and infrastructure.In conclusion, the Dairy Direct Payment Program represents a significant effort by the Canadian government to support its domestic dairy industry amidst challenges posed by international trade agreements. By directly funding producers based on milk quota, the program not only aims to shield them from potential trade-related market volatility but also secures the sustained productivity and economic viability of the Canadian dairy sector. As such, it forms a crucial part of the broader strategy to maintain the competitiveness and sustainability of agriculture in Canada.
