Dairy Direct Payment Program

Objective

The objective of the Dairy Direct Payment Program is to provide full and fair compensation to 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).

Available funding

The Dairy Direct Payment Program will provide grant payments in 2019-20 of $345 million to compensate cow’s milk producers.   The first year of the program ends on March 31, 2020.

Who is eligible

Eligible recipients are producers of cow's milk with a valid dairy quota license registered with a provincial milk marketing board/agency as of the date of calculation of the Dairy Direct Payment Program payments. Producers of cow's milk with a valid dairy quota license means a producer of cow's milk holding dairy quota issued by a provincial milk marketing board. This includes producers under a new entrants assistant program with loaned quota and/or whole-farm leases with loaned quota at the time of the calculation. The amount of the quota held according to the provincial milk marketing board/agency records will be considered final.

In the event of a whole farm lease (i.e., 100% of the quota is leased from one producer to another for an ongoing extended period of time and is not related to a catastrophe such as a fire, sickness of the herd, or of the producer) the lessee shall receive the program payment.

In the event where a producer temporarily leases their owned quota to another producer for reasons such as fire, illness with herd or illness of owner, the owner of the quota will receive the program payment.

A recipient must be an individual and/or legal entity capable of entering into legally binding agreements / contracts. This would include sole proprietor businesses, partnerships or corporations.

Ineligible recipients include:

Program delivery

There are no applications to complete under the Dairy Direct Payment Program. However, producers will be required to register for the program using a web-based portal and indicate acceptance/acknowledgement of the payment.

A registered producer will receive a payment in proportion to the quota they hold. To determine individual payments, the program budget of $345 million will be divided according to the provincial shares of the national production quota as of August 31, 2019.

The Canadian Dairy Commission (CDC) will collect information from provincial milk marketing boards on the licensed quota holders and their individual shares of the provincial production quotas as of August 31, 2019 to ensure the payments reflect current Canadian milk producers. The CDC will calculate the individual payments to be made based on the percentage that each producer’s quota holdings represent of the total quota within the province as of August 31, 2019.

Contact information

All correspondence concerning the DDPP should be sent to:

Agriculture and Agri-Food Canada
Dairy Direct Payment Program (DDPP)
1341 Baseline Road
Tower 7, 4th Floor
Ottawa, ON K1A 0C5

Email: aafc.ddpp-ppdpl.aac@canada.ca
Telephone: 1-877-246-4682
Fax: 1-877-949-4885
TDD/TTY: 613-773-2600


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