THE Canadian government will give C$1.75 billion (£1.07 billion) over eight years to its 11,000 dairy farmers to make up for lost income from trade deals with Europe and the Pacific Rim.
Agriculture Minister Marie-Claude Bibeau says C$345 million (£211.4 million) will be paid in the first year, in the form of direct payments and will benefit all dairy producers in proportion to their quota held.
The move follows ratification of the Canada-European Union Comprehensive Economic and Trade Agreement and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.
The owner of a farm with 80 dairy cows will received compensation in a direct payment of C$28,000 (£17,157) in the first year.
The intent is to mandate the Canadian Dairy Commission to make the payments.
Bibeau says the government will work with the Dairy Farmers of Canada group to determine terms and conditions for future years.
The C$1.75 billion is in addition to a C$250-million (£153.,2-million) investment programme that already benefits more than 3,300 dairy producers across the country.
Bibeau promises that the federal government is committed to fully and fairly supporting dairy producers for the new free trade agreement with the United States and Mexico once it comes into force.