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Canada's poultry and egg producers can now apply for PEFIP funding

Members of Canada's poultry industry can apply for compensation funds from the Poultry and Egg On-Farm Investment Program (PEFIP) to boost competitiveness.

2 June 2021, at 8:00am

Canada's supply-managed poultry and egg farmers are part of the backbone of the Canadian agriculture sector and the Canadian economy. Despite the challenges brought on by the COVID-19 pandemic, they continue to produce high-quality products for Canadians and keep our rural communities competitive and resilient.

The Minister of Agriculture and Agri-Food, the Honourable Marie-Claude Bibeau, has announced that the Poultry and Egg On-Farm Investment Program (PEFIP) is now accepting applications.

The PEFIP will provide almost $647 million over ten years to support poultry and egg producers through on-farm investments. Each producer is entitled to an amount proportional to their quota holdings as of 1 January 2021. Applications will be accepted until 31 March 31 2030, meaning producers can apply when they are ready to make an investment.

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Eligible projects include anything that helps a producer increase efficiency or productivity, respond to consumer preferences, or improve on-farm safety, biosecurity or environmental sustainability. This includes new barn construction or upgrades to equipment like feeding, watering, lighting, ventilation, heating, and comfort systems that will promote energy efficiency and reduce an operations environmental footprint.

The Government of Canada will contribute up to 70% of the projects costs, increasing to up to 85% for young farmers, to help ensure a strong future for Canada’s farms. The PEFIP offers producers flexibility to seek funding for eligible activities that started on or after March 19, 2019.

Speaking after the announcement, Minister of Agriculture and Agri-Food Marie-Claude Bibeau said, "our government is delivering on its commitment to compensate supply-managed farmers for the impacts of recent trade agreements. This program, which launches today, will help Canadian poultry and egg producers be more competitive and make their facilities even more sustainable.”

The PEFIP and the Market Development Program for Turkey and Chicken (MDPTC), taken together, total more than $691 million over ten years. These programs respond directly to requests from producer associations and provide full and fair compensation to supply-managed sectors for market access concessions made under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Background information and quick facts

  • The funding allocation under the Poultry and Egg On-Farm Investment Program (PEFIP) is:
    • $347.3 million for chicken producers
    • $76.9 million for turkey producers
    • $134 million for egg producers
    • $88.6 million for broiler hatching egg producers
  • Under the PEFIP, an average chicken producer will have access to up to $122,411; an average turkey producer will have access to up to $147,356; an average egg producer will have access to up to $111,203; and an average hatching egg producer will have access to up to $375,297. These average entitlements are for the life of the program.
  • Responding to stakeholder requests, $17.3 million of the previously announced $36.5 million for the Turkey Farmers of Canada under the Market Development Program for Turkey and Chicken (MDPTC) has been re-allocated to turkey producers under the PEFIP. The combined investment for MDPTC and PEFIP, totaling more than $691 million over ten years, remains unchanged.
  • The MDPTC, which was launched 13 April 2021, will provide $19.2 million to the Turkey Farmers of Canada and $25 million to the Chicken Farmers of Canada over ten years. This funding will help promotional activities that differentiate Canadian-made products’ reputation for high-quality, safe and sustainably farmed food that adheres to strict animal welfare standards.
  • The four supply-managed poultry and egg sectors (chicken, broiler hatching eggs, turkey, and eggs) generated $4.9 billion in farm cash receipts in 2020, 6.8% of all farm cash receipts in Canada. According to industry, Canada's poultry and egg sector supports more than 140,000 direct and indirect jobs.
  • The Government of Canada remains committed to engaging the sector on full and fair compensation for the Canada-United States-Mexico Agreement (CUSMA).