ID 87875723 © Grigorenko Dreamstime.com

By Alice McFarlane

Dairy Compensation

Feds compensate dairy producers for impact of trade deals

Aug 16, 2019 | 12:40 PM

The Liberal government is delivering $1.75 billion in compensation for dairy producers impacted by the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The funding will roll out over eight years for nearly 11,000 farmers to compensate them for losses. A farm with 80 dairy cows will be awarded compensation of $28,000 in the first year.

Federal Agriculture Minister Marie-Claude Bibeau made the announcement at a dairy farm at Compton, Quebec this morning.

She said in the first year the money will be paid out in direct payments according to their production quotas.

“The Canadian Dairy Commission will be mandated to distribute $345 million to the producers,” Bibeau said. “The first step will be to get in touch with all of the regional and provincial associations to get the list of and the names and co-ordinate will each and every producer across Canada. Then they will get in touch with each and every producer to put in place the mechanics to make the bank transfers as soon as possible.”

Responsive measures

Some Sask. farmers to get winter elk hunting permits next year to protect land

Mar 12, 2026

Buy Now, Pay Later!

Spring 2026 Early Buy Program

Mar 09, 2026

SARM Convention

Sask RMs gather to address come concerns

Mar 06, 2026

Bibeau said the government understands the significant impact of CETA and CPTPP on the supply management sector.

“Today’s announcement shows how much our government respects our producers and believes in the supply management system. As promised, the compensation is deployed fully and fairly to allow everyone to make the best decisions based on the new market realities and their respective situations.”

Sask Milk Policy Manager Joy Smith said the payment is fair.

“It’s based on the math that was done and so that total payout is reasonable,” Smith said. “Everybody on all sides agreed to it and it’s reasonable going forward. Farmers are looking forward to taking the money and using it towards innovation and growing the industry.”

Smith said the money will be reinvested back into Canada.

“It’s because Canadians have told us time and time again that they really want Canadian milk and they want Canadian products and they’re very supportive of the Canadian sector,” Smith said. “We’re still looking at new ways to innovate and processors are looking at new products. We expect to continue to grow more.” Smith said.

Dairy Farmers of Canada President Pierre Lampron welcomed the news. He said there is no doubt that conceding part of the domestic dairy market has had a major impact on the livelihoods of dairy producers.

“While we are grateful for today’s announcement, we would have preferred no concessions to our domestic dairy production.” Lampron said. “The prime Mminister has made another commitment: no further concessions would be made to our domestic dairy market in future trade negotiations. Our expectation is that he will keep that commitment as well.”

–

alice.mcfarlane@jpbg.ca

On Twitter: @AliceMcF