Vol. 143, No. 14 — July 8, 2009

Registration

SOR/2009-196 June 18, 2009

CANADIAN WHEAT BOARD ACT

Regulations Amending the Canadian Wheat Board Regulations

P.C. 2009-1003 June 18, 2009

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, hereby makes the annexed Regulations Amending the Canadian Wheat Board Regulations.

REGULATIONS AMENDING THE CANADIAN WHEAT BOARD REGULATIONS

AMENDMENT

1. Subsections 26(1) and (2) of the Canadian Wheat Board Regulations (see footnote 1) are replaced by the following:

26. (1) The sum certain that the Corporation is required to pay producers on a per tonne basis under paragraph 32(1)(b) of the Act in respect of the base grade of wheat sold and delivered to the Corporation during the pool period ending on July 31, 2009 and known as No. 1 Canada Western Red Spring (12.5% protein content) is

(a) $263.00 for straight wheat;

(b) $255.00 for tough wheat;

(c) $247.50 for damp wheat;

(d) $255.00 for straight wheat, rejected on account of stones;

(e) $247.00 for tough wheat, rejected on account of stones; and

(f) $239.50 for damp wheat, rejected on account of stones.

(2) The sum certain that the Corporation is required to pay producers on a per tonne basis under paragraph 32(1)(b) of the Act in respect of the base grade of wheat sold and delivered to the Corporation during the pool period ending on July 31, 2009 and known as No. 1 Canada Western Amber Durum (12.5% protein content) is

(a) $330.80 for straight wheat;

(b) $322.80 for tough wheat;

(c) $315.30 for damp wheat;

(d) $322.80 for straight wheat, rejected on account of stones;

(e) $314.80 for tough wheat, rejected on account of stones; and

(f) $307.30 for damp wheat, rejected on account of stones.

COMING INTO FORCE

2. These Regulations come into force on the seventh day after the day on which they are registered.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue and objectives

Pursuant to the Canadian Wheat Board Act, grain producers receive an initial payment upon delivery of grain to the Canadian Wheat Board (CWB) pool accounts. Revenues from the sale of grain are pooled by the CWB and any surplus over the initial payment minus marketing costs is distributed to producers after the end of the pool period as a final payment. The initial payment is guaranteed by the federal government and any pool account deficits are paid by the federal government. The CWB operates a pool account for each of four classes of grain for which it has responsibility (wheat, amber durum wheat, barley and designated barley).

In accordance with the Act, the Governor in Council by regulation establishes the initial payment for a “base” grade for each of the four pool accounts, and approves the initial payment for other grades as recommended by the CWB. The initial payments are set at the beginning of the pool period and are adjusted throughout the pool period as the CWB makes additional sales and as the market prices dictate. The CWB’s recommendations are based on relative market returns expected for each grade during the current pool period.

The CWB has recommended that an increase be made to the initial payments for wheat and amber durum wheat as the CWB has made sufficient sales since the initial payments were last raised on February 19, 2009.

The objective of this regulatory action is to adjust the initial payments for the base grades of wheat and amber durum wheat.

Description and rationale

Section 26 of the Canadian Wheat Board Regulations establishes the initial payments to be paid upon delivery for grains delivered to the CWB. The amendment adjusts the initial payments for the 2008-2009 pool period for wheat and amber durum wheat. Comparing the proposed initial payments to those set February 19, 2009 for the base grades, the CWB has made sufficient sales to recommend an increase of $20 per tonne for wheat and $55 per tonne for amber durum wheat.

The higher initial payments will represent increased revenues to wheat producers for their deliveries to the CWB. The initial payment adjustments to all grades in the pool account, including the base grade, would represent approximately $489.5 million in additional grain receipts for wheat producers. Producers will receive these additional receipts in one of two ways. For grain deliveries on the day that the increase becomes effective and thereafter until the end of the pool period on July 31, 2009, producers will receive the higher initial payments. For grain deliveries during the pool period, but prior to this amendment coming into force, producers will receive an adjustment payment per tonne, equivalent to the difference between the initial payment prior to the increase and the new initial payment.

The proposed increase in the initial payments should not create the risk of a deficit in the pool accounts. A minimum 35% safety factor for unpriced grain has been used to account for market uncertainties. Although the increase in the initial payment increases the risk of a deficit compared to no increase, the actual risk to the federal government is minimal.

The initial payments established by these Regulations relate to the returns anticipated from the market and thus transmit market signals to producers. There is no environmental impact of this amendment.

Consultation

Initial payment levels have been recommended by the CWB. The Department of Finance has been consulted and concurs with the recommendations.

Implementation, enforcement and service standards

The schedules come into effect on the seventh day after the day on which they are approved by the Governor in Council.

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

Contact

Marcia Armstrong
Crop Sector Policy Division
Agriculture and Agri-Food Canada
930 Carling Avenue
Sir John Carling Building
Ottawa, Ontario
K1A 0C5
Telephone: 613-759-7685

Footnote a
S.C. 1995, c. 31, s. 2(1)

Footnote b
S.C. 1995, c. 31, s. 4

Footnote 1
C.R.C., c. 397

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