Dairy Direct Payment Program
The objective of the program is to support dairy producers as a result of market access commitments made under recent international trade agreements.
Under the program, eligible dairy producers receive payments on the basis of their milk quota.
Offered by Agriculture and Agri-Food Canada (AAFC)
Amount
Payments to eligible dairy producers on the basis of their milk quota, from a total of $1.2 billion in CUSMA compensation over 2023-24 to 2028-29. $250 million was available in 2025-26 (e.g. an eligible producer with 80 cows could receive around $22,090). $150 million will be available in 2026-27, $150 million in 2027-28 and $100 million in 2028-29.
Quick eligibility check
Who can apply
You must meet all of the following criteria to be eligible.
- You’re a cow's milk producer with a valid dairy quota license registered with a provincial milk marketing board or agency as of August 31, 2025 "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 entrant assistance program with loaned quota and/or whole-farm leases with loaned quota as of August 31, 2025. The amount of the quota held according to the provincial milk marketing board or agency will be considered final. In the event of:
- a whole farm lease (where 100% of the quota is leased from one producer to another for an extended period of time and isn’t related to a catastrophe such as a fire or illness affecting the herd or producer), the lessee will receive the program payment
- This doesn’t apply to partial leases
- a temporary lease of quota (or a portion of quota) from a producer to another producer for reasons such as fire or illness affecting the herd or owner, the owner of the quota will receive the program payment
- You’re an individual and/or legal entity capable of entering into legally binding agreements or contracts (includes sole proprietor businesses, partnerships and corporations)
- You registered by the deadline March 31, 2026
You need to meet all the eligibility criteria to qualify for the program.
If you meet all the eligibility criteria, you may qualify for the program.
Not eligible:
Ineligible recipients include
other types of dairy producers (for example goat, sheep or water buffalo
any applicant who does not own a valid dairy license according to provincial milk marketing board/agency records
educational organizations who do not own a valid dairy quota license
research institutions who do not own a valid dairy quota license
If you sold your farm and no longer hold quota as of August 31, 2025, you're not eligible to receive a payment for that year
About the 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).
In 2025-26, $250 million was made available up to March 31, 2026 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 2025-26.
In the next 3 years:
- $150 million will be made available in 2026-27
Show all funding details
- $150 million will be made available in 2027-28
- $100 million will be made available in 2028-29
Similar programs
| Program | Type | Amount | Status |
|---|---|---|---|
| AAFC AgriInvest | Grant | Deposit up to 100% of your Allowable Net Sales and receive a matching government contribution on 1% of your Allowable Net Sales (Allowable Net Sales limited to $1 million when calculating your matchable deposit) | Open |
| Aboriginal Entrepreneurship Program: Access to Capital | Grant | Individual Indigenous entrepreneurs may receive up to $99,999 in funding assistance and eligible Indigenous community businesses may receive up to $250,000 (non-repayable equity contribution | Open |
| Access Support Fund | Grant | No fixed amount | Open |
| AgriScience Program – Projects | Grant, In-Kind Support | Up to $5 million per project and $10 million per applicant over the program's duration (2023 to 2028) | Open |
