Canadian food producers are to immediately receive C$1bn (US$0.8bn) in income support by their federal government to counteract the financial impact of the US ban on Canada beef and low commodity prices.

About 55% of the aid package will go to the grain and oilseed sector that is facing a 25-year low in commodity prices, while 20% will go to cattle and ruminant producers.

Farmers have also suffered droughts and killer frosts as well as a stronger Canadian dollar that has made their products more expensive abroad.

“At a time when the marketplace is demanding bold innovation, farmers across Canada have been devastated by some of the most difficult years ever faced by the industry,” said agriculture minister Andy Mitchell.