Registration
SOR/2008-32 January 31, 2008

CANADIAN WHEAT BOARD ACT

Regulations Amending the Canadian Wheat Board Regulations

P.C. 2008-0221 January 31, 2008

Her Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to subparagraph 32(1)(b)(i) (see footnote a), subsection 47(2) (see footnote b) and section 61 of the Canadian Wheat Board Act (see footnote c), hereby makes the annexed Regulations Amending the Canadian Wheat Board Regulations.

REGULATIONS AMENDING THE CANADIAN WHEAT BOARD REGULATIONS

AMENDMENT

1. Subsection 26(3) of the Canadian Wheat Board Regulations (see footnote 1) is replaced by the following:

(3) The sum certain that the Corporation is required to pay producers on a per tonne basis under paragraph 32(1)(b) and section 47 of the Act in respect of the base grade of barley sold and delivered to the Corporation during the pool period beginning on February 1, 2008 and ending on July 31, 2008 and known as No. 1 Canada Western is

(a) $157.50 for straight barley;

(b) $150.50 for tough barley;

(c) $144.00 for damp barley;

(d) $152.50 for straight barley, rejected on account of stones;

(e) $145.50 for tough barley, rejected on account of stones; and

(f) $139.00 for damp barley, rejected on account of stones.

COMING INTO FORCE

2. These Regulations come into force on February 1, 2008.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

Section 26 of the Canadian Wheat Board Regulations establishes initial payments for the Canadian Wheat Board (CWB) pool accounts. These payments are paid to producers upon delivery of grains into the elevator system over the course of a pool period. The amendment, effective February 1, 2008, establishes an initial payment of $157.50 per tonne for the pool period beginning on February 1, 2008 and ending on July 31, 2008, an increase of $50.50 per tonne to the prices set six months earlier.

Alternatives

An alternative considered was to establish the initial payment at a higher level than that recommended for approval. The initial payment is announced to reflect to producers the market conditions in which their crops must compete. These conditions are based upon current and forecast supply/demand relationships for barley both domestically and internationally and which can change very rapidly as markets react to a multitude of market factors. World production of barley in 2007-2008 is forecast to decrease from the level of 2006-2007. The lower world supplies of barley and the strong world demand for barley are expected to result in higher world prices in 2007-2008.

Benefits and costs

The initial payment established by these Regulations indicates the returns anticipated from the market, as of mid-December 2007, and thus transmits appropriate market signals to producers. This allows both large and small producers to make their marketing decisions more efficiently based upon anticipated returns to their individual farms.

The higher initial payment than that established for August 1, 2007 will result in higher returns to producers on a per tonne basis. Government policy has been to avoid using initial payments as a means to providing farm income support. The initial payment level will transmit to producers the appropriate market information. The initial payment can be increased during the pool period, depending on international market prices and conditions. There is no environmental impact of this amendment.

Consultation

This amendment has been discussed with The Canadian Wheat Board and with the Department of Finance.

Compliance and enforcement

There is no compliance and enforcement mechanism. These Regulations govern payments made to grain producers for deliveries made under the Canadian Wheat Board Regulations governing delivery permits.

Contact

Sara Steeves
Policy Economist
Grain Policy Division
Strategic Policy Branch
Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Avenue
Ottawa, Ontario
K1A 0C5
Telephone: 613-694-2674
Fax: 613-759-6612

Footnote a
 S.C. 1995, c. 31, s. 2(1)

Footnote b
 S.C. 1995, c. 31, s. 4

Footnote c
 R.S., c. C-24

Footnote 1
 C.R.C., c. 397

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