Long-promised compensation finally to flow to poultry and egg farmers

  • National Newswatch

Dairy farmers will get their payments in a shorter time frame.   Ottawa—Poultry and egg farmers finally know they will start receiving sometime in 2021long-promised compensation for lost market share resulting from two free trade deals while dairy farmers will get the rest of their money in three years rather than seven originally announced. The support is to make up for increased access for dairy and poultry products under the European and Pacific trade deals. The poultry sector has been waiting for the compensation for almost a year and a half. Agriculture Minister Marie-Claude Bibeau said Nov. 28 the government has allocated $691 million for the 4,700 poultry and egg farmers. “Program details will be designed in consultation with sector representatives and launched as soon as possible.” Dairy farmers received an initial payment last fall or early this year totalling $345 million and will receive the remaining $1.405 billion during the next three years. Still to come for both groups of farmers are the details of compensation for the impact of the CUSMA deal. In a joint statement, the Chicken, Turkey, Hatching Eggs and Egg Farmers said the compensation is “a step in the right direction towards supporting farmers as they make ongoing improvements to their operations and enhance the long-term efficiency and sustainability of their farms. It will also help maintain economic activity in rural and urban communities across Canada.” The sector has lost a significant portion of its domestic market and the financial support “will allow farmers to plan for the future, navigate the unique dynamics of our respective industries, and contribute to Canada's goals of growing our agricultural sector.” Dairy farmers will receive, on the basis of their milk quota, cash payments of $468 million in 2020-21, $469 million in 2021-22 and $468 million in 2022-23. The owner of a farm with 80 dairy cows will get about $38,000 each year. Bibeau said The funds are in addition to a $250 million on-farm investment program. Pierre Lampron, President of Dairy Farmers of Canada, said the new compensation plan provides more certainty for dairy farmers. “Dairy farmers want to invest in their farms to innovate and increase efficiencies. Our objective is to be better prepared to face the intensification of competition from imported dairy products made from milk produced elsewhere. These important investments on the farm can only come with a level of certainty as it relates to the promised compensation. Reducing the timelines for the scheduled payments is recognition by the government of the importance of the foreign competition we face, this is why the announcement is so significant.” Mary Robinson, President of the Canadian Federation of Agriculture, said the compensation “will allow farmers to plan for the future, navigate the unique dynamics of their respective industries, and contribute to Canada's goals of growing our agricultural sector. This is a good step, but more must be done by the government as it conceded further supply-managed market access during the CUSMA negotiations.” Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.