Cost of Production Payment

The $400 million Cost of Production Payment is a direct payment to producers this year to help address high production costs over the last four years.

Who Can Apply

Most producers do not have to apply and will receive a payment automatically. New farmers or producers who did not participate in CAIS for 2004 are eligible but must send in an application.

An application form is now available.

The deadline to apply was September 1, 2007.

Payments

Payments will be based on an average of a producer's net sales for the 2000 to 2004 period.

The initial payment will be based on 2.36 per cent of net sales. For new producers, payments will be based on 2.36 per cent of an average of 2005 and 2006 net sales.

Initial payments will begin to flow in late June 2007, with the bulk of payments completed by the end of October. If funds remain, final payments will be made in December 2007.

Contact Information

For more information on these initiatives, producers can contact the toll free number at 1-866-367-8506.