OTTAWA – Parliament has increased the Canadian Dairy Commission’s (CDC) borrowing limit from $300 million to $500 million.
The additional loan expansion will allow the commission to temporarily store more cheese and butter and avoid waste.
The Canadian Dairy Commission is a Crown corporation that administers milk production control mechanisms to avoid production shortages or surpluses. The Commission provides a framework for managing the sector, a shared federal and provincial responsibility.
The COVID-19 pandemic has caused significant fluctuations in the demand for many dairy products. Unfortunately, dairy farmers have had no choice but to discard some of their milk.
Stakeholders throughout the dairy industry supply chain are working closely with provincial marketing boards to ensure that Canadians continue to have access to a wide variety of dairy products, while implementing measures to temporarily reduce production.
Dairy farmers and processors have been donating significant volumes of dairy products to food banks across the country to support Canadians in need during COVID-19. Over one million litres of milk have been donated to food banks in Quebec alone.
Farm Credit Canada also received federal support to allow for an additional $5 billion in lending capacity to producers, agribusinesses, and food processors.
Eligible farmers were also give an additional six months to repay outstanding Advance Payments Program (APP) loans due on or before April 30. Farmers with outstanding interest-free loans will have the opportunity to apply for an additional $100,000 interest-free portion for 2020-2021, as long as their total APP advances remain under the $1 million cap.