Dairy Direct Payment Program

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.

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.

Who is eligible?

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

Who is not eligible

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.

Eligible expenses

There are eligible expenses for this grant. Eligible expenses include:

• Direct payments to eligible supply-managed cow’s milk producers

Eligible geographic areas

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.

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.

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.