Dairy Farmers of Canada (DFC) is welcoming Tuesday’s federal budget announcement, which contains a funding envelope of $3.9 billion to compensate Canada’s dairy, poultry, and egg sectors for the impact of concessions granted in the recent Comprehensive Economic and Trade Agreement (CETA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Of that amount, $2.15 billion would be available for income losses and another $1.5 billion for a Quota Value Guarantee Program.

“The federal government recognizes the impact of trade agreements on our sector and is following through on its commitment to support our domestic dairy industry,” said DFC President Pierre Lampron.

DFC says the combined impact of concessions granted under CETA, CPTPP, and the Canada-United States-Mexico Agreement (CUSMA) represent annual losses of 8.4% of Canada’s milk production.

“We also welcome the government’s commitment to continue the dialogue on the future impact of CUSMA on our sector,” added Lampron.

DFC is waiting to meet with the federal agriculture minister to find out how the funds will be allocated.