Compensation Programs for Chicken, Turkey and Egg Producers

From: Agriculture and Agri-Food Canada

Backgrounder

Poultry and Egg On-Farm Investment Program

The Poultry and Egg On-Farm Investment Program will help Canadian poultry and egg increase their competitiveness over the long-term and become more environmentally sustainable and efficient by:

  • facilitating producer-made investments for on-farm modernization
  • supporting greater efficiency and competiveness
  • helping producers meet changing requirements for production practices
  • supporting the sector in better responding to future market challenges

The program will provide non-repayable contributions close to $630 million over 10 years. The funding allocations include:

  • $347.3 million for chicken producers;
  • $59.6 million for turkey producers;
  • $134 million for egg producers;
  • $88.6 million for broiler hatching egg producers.

The intake of applications for the Poultry and Egg On-Farm Investment Program will launch later this spring. Every producer will be entitled to an amount proportional to their quota holdings on January 1, 2021, which they can apply whenever they are ready to invest. Should applications exceed the program’s annual funding allocation, they may be approved to be reimbursed in a future fiscal year in order to avoid delaying the start of the project. Projects will be cost shared between Agriculture and Agri-Food Canada (AAFC) and the applicant with AAFC contributing a maximum of 70% of the project cost.

Youth and young farmers are the future of Canada’s agriculture and agri-food sector. In order to assist Canadian young farmers to succeed, AAFC will use a cost share ratio of up to 85% for farmers who were 35 years of age or under on January 1, 2021.

The Poultry and Egg On-Farm Investment Program will consider eligible costs retroactive to the announcement of support for supply-managed sectors made in Budget 2019 (March 19, 2019). The program will allow applicants to apply for eligible activities that started on or after March 19, 2019 (“retroactive activities”). While the program allows for such retroactive activities, the applicant assumes the risk of not being reimbursed should the project not be approved or the costs deemed ineligible.

Under the Poultry and Egg On-Farm Investment Program:

  • An average chicken producer, who produces 448, 202 kilos per year, will have access to up to $122,411
  • An average turkey producer, who produces 302,299 kilos per year, will have access to up to $114,195
  • An average egg producer, who produces 654,772 dozen eggs per year, will have access to up to $111,203
  • An average hatching egg producer, who produces 3,413,983 eggs per year, will have access to up to $375,297

The program has been developed based on extensive consultations with industry and AAFC is working to ensure that sufficient resources are in place to meet program demand.

Market Development Program for Turkey and Chicken

The Market Development Program for Turkey and Chicken will help promotional activities that differentiate Canadian products and producers from competing imports, and leverage Canada’s reputation for high quality and safe food.

Applicants will submit a multi-year strategy (maximum five-years) to AAFC for approval. Funds are to be used for:

  • sector-wide advertising and promotion;
  • promotional activities that build public trust in Canadian turkey and chicken products;
  • market research;
  • development and/or expansion of target audiences;
  • increasing delivery of current market development activities;
  • encouraging product development, product testing and research into new innovative processing and packaging technology at the primary and further processing level;
  • adapting current branding to meet changing consumer expectations.

Over the next ten years, the program will provide over $61 million to the turkey and chicken sector. Funding will be allocated as follows:

  • $36.5 million for the Turkey Farmers of Canada; and,
  • $25 million for the Chicken Farmers of Canada.

Marketing activities will be cost shared with industry with AAFC providing 80 % funding for eligible project costs. AAFC may provide up to 90 % funding for specific projects aimed at promoting inclusiveness and diversity in the market development activities supported by the program. The program and funding allocations are based on feedback received through industry consultations that took place earlier this year.

/Public Release. This material comes from the originating organization and may be of a point-in-time nature, edited for clarity, style and length. View in full here.