Announcement covers only one of three areas under discussion with the dairy and poultry sectors.Ottawa--The announcement of $1.75 billion in financial aid for dairy farmers during the next eight years to offset the impact of increased domestic market access under trade deals settles only one of the compensation discussions affecting supply management that started last fall and leaves up in the air how the new NAFTA deal will be factored in.After the deal with the United States and Mexico was announced in October, Prime Minister Justin Trudeau said farmers and processors would be consulted on how the increased access for foreign dairy and poultry products allowed under the North American, European and Pacific trade deals would affect them and what compensation would be paid.Agriculture Minister Marie-Claude Bibeau inherited the discussions with three industry working groups when she became agriculture minister in January. She promised the compensation details would be wrapped up by the end of June. When that deadline passed, she said they would be completed before the election, which is expected to be held on Oct. 21.The Canadian Dairy Commission will handle the payouts with $345 million to be distributed in the first year, in the form of direct payments based on the amount of quota a producer has. Bibeau said a farmer with 80 dairy cows will receive $28,000. The federal government will consult with Dairy Farmers of Canada (DFC) to determine terms and conditions for future years.“Today's announcement shows how much our government respects our producers and believes in the supply management system. As promised, the compensation is deployed fully and fairly to allow everyone to make the best decisions based on the new market realities and their respective situations.”The second working group is developing “a future vision to ensure the dairy industry can innovate, grow and remain an important source of jobs and growth for future generations.” Its work isn't complete, DFC said. The third group covers the turkey, chicken and egg sectors and while its work has been completed, no final decision has been made.DFC said the $1.75 billion in compensation will help mitigate the impact of the trade agreements on dairy farmers and the hundreds of thousands of people who depend on this sector for their livelihood. The working group recommended direct compensation to dairy farmers for the negative impacts from these trade deals.“There is no doubt that conceding part of our domestic dairy market has had a major impact on the livelihoods of dairy producers”, said DFC President Pierre Lampron. DFC estimates that the market access granted under these agreements represents an annual loss equivalent to 8.4 per cent of the country's milk production. Adding these concessions to the access already granted under the WTO, it is estimated that by 2024, nearly 20 per cent of domestic demand for dairy products will be met by imports.While DFC would have preferred to see no access provisions in the trade deals, Lampron said the government has promised no further ones will be made. Dairy farmers need a strong processing sector and DFC expects the government will assist them as well, he said.Bibeau said that in addition to the compensation, the federal government has helped the sector with a $250 million investment program that already benefits more than 3,300 dairy producers across the country. She said the 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.”Alex Binkley is a freelance journalist and writes for domestic and international publications about agriculture, food and transportation issues. He's also the author of two science fiction novels with more in the works.