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

Step 1. What this program offers

The Dairy Direct Payment Program registration period for the 2020-21 payment year is now closed. More information will be made available in the Fall of 2021 for the 2021-22 payment year.

The objective of the Dairy Direct Payment Program is to support dairy producers as a result of market access commitments made under recent international trade agreements, namely the Canada–European Union Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

In August 2019, the federal government announced that it will make available $1.75 billion to supply-managed cow's milk producers. Up to $345 million and $468 million in direct payments was made available in 2019-20 and 2020-21 respectively.

The payment schedule for the remaining $937 million in direct payments over the next 2 years is:

  • $469 million in 2021-22
  • $468 million in 2022-23
    • The full $468 million announced is available to producers in the form of direct payments

Amounts are available up to March 31 of each year. To receive a payment, registrations must be signed and received no later than March 31 of each year.

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

The Canadian Dairy Commission (CDC) has been mandated to deliver 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