Dairy Direct Payment Program: Step 1. What this program offers

Step 1. What this program offers

Intake period: Open

The intake period for the Dairy Direct Payment Program is open.

Program objective

The objective of the program is to support dairy producers as a result of market access commitments made under recent international trade agreements.

Funding

Under the program, eligible dairy producers receive payments on the basis of their milk quota. From 2023-24 to 2028-29, the program will make available a total of $1.2 billion in compensation for the impacts of the Canada-United States-Mexico Agreement (CUSMA).

Current and upcoming payments

In 2024-25, $250 million will be made available up to March 31, 2025 in the form of direct payments to eligible supply-managed cow’s milk producers. For example, an eligible producer with 80 cows could receive around $22,090 in 2024-25. To receive a payment, registrations must be signed and received no later than March 31, 2025.

In the next 4 years:

  • $250 million will be made available in 2025-26
  • $150 million will be made available in 2026-27
  • $150 million will be made available in 2027-28
  • $100 million will be made available in 2028-29

Eligible producers must register every year of the program to receive a payment.

National allocation of funds on a provincial basis for year 2024-25

National allocation of funds on a provincial basis Allocated Quota
(% of the P10 Rounded)
Provincial share $
(Rounded)
Newfoundland and Labrador 0.47% $1,165,597
Prince Edward Island 1.27% $3,171,451
Nova Scotia 2.16% $5,413,279
New Brunswick 1.69% $4,218,864
Quebec 36.92% $92,299,675
Ontario 32.03% $80,079,084
Manitoba 4.36% $10,895,556
Saskatchewan 3.12% $7,806,506
Alberta 8.96% $22,402,238
British Columbia 9.02% $22,547,750
Total 100.00% $250,000,000
Past direct payments

In 2023-24, the program made available $300 million out of the $1.2 billion in compensation for the impacts of the CUSMA.

From 2019-20 to 2022-23, the program made available $1.75 billion in compensation for the impacts of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Up to $345 million, $468 million, $469 million, and $468 million in direct payments was made available in 2019-20, 2020-21, 2021-22 and 2022-23 respectively.

How the program is delivered

The Canadian Dairy Commission (CDC) delivers the program. The CDC will:

  • collect information from provincial milk marketing boards on the licensed quota holders
  • calculate individual payments based on the percentage of each producer's provincial quota holdings
  • work closely with each of the provincial milk marketing boards to deliver funding