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Dairy farms got $101,400 each after Canada gave up foreign access to cheese market

OTTAWA — A third of Canadian dairy farmers received direct subsidies after a 2017 trade pact increased imports of tariff-free European cheese, says a Department of Agriculture audit, reported by Blacklock’s Reporter.

Compensation of $350 million was paid to 3,450 of 9,403 dairy farms nationwide, the audit said. On average that’s $101,400 per farm.

A 2017 Canada-European Union Comprehensive Economic And Trade Agreement raised the duty-free quota of European cheese imports from 13,471 tonnes annually to 18,500 tonnes, “about four per cent of Canada’s annual cheese consumption.” The $350 million subsidy was promised to compensate dairy farmers for lost sales.

The audit observed that milk producers overall were doing well. “Cash receipts have increased by about 39 per cent from $5.9 billion in 2012 to $8.2 billion in 2022,” the auditors wrote. “This growth is generally attributed to increased milk production and higher farm gate milk prices.”

Blacklock’s Reporter noted that Canada has some 80 federal and provincial boards regulating the production and sale of farm products including British Columbia turkeys, Manitoba honey, Ontario apples, Québec maple syrup and Prince Edward Island potatoes.

Source : Farmersforum

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