Vol. 144, No. 4 — February 17, 2010

Registration

SOR/2010-16 January 26, 2010

CANADIAN WHEAT BOARD ACT

Regulations Amending the Canadian Wheat Board Regulations

P.C. 2010-94 January 26, 2010

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, 2010 and ending on July 31, 2010 and known as No. 1 Canada Western is

(a) $92.00 for straight barley;

(b) $85.00 for tough barley;

(c) $78.50 for damp barley;

(d) $87.00 for straight barley, rejected on account of stones;

(e) $80.00 for tough barley, rejected on account of stones; and

(f) $73.50 for damp barley, rejected on account of stones.

COMING INTO FORCE

2. These Regulations come into force on February 1, 2010.

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. The wheat, amber durum wheat and designated barley pools run from August 1 to July 31, while the feed barley pool is divided into two six-month pool periods, running from August 1 to January 31 and from February 1 to July 31.

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 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 coming pool period.

The objective of this regulatory action is to establish the initial payment for the base grade of barley at the level recommended by the CWB.

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 establishes the initial payment for the second pool period running from February 1, 2010 to July 31, 2010 for the barley pool account. Compared to the initial payment for the first pool period set on August 1, 2009, the proposed payment for the base grade of barley has decreased $9 per tonne.

Prices for the second half of the 2009-2010 crop year are expected to average lower than for 2008-09 under pressure from increased supplies of coarse grains worldwide, ample supplies of alternative feed grains and the rise in the value of the Canadian dollar against the U.S. dollar.

The initial payment established by these Regulations indicates the return anticipated from the market. This allows both large and small producers to make their marketing decisions more efficiently based upon anticipated returns to their individual farms. Initial payments can be increased during the pool period, depending on international market prices and conditions.

The initial payment established by these Regulations relates to the return anticipated from the market and thus transmits the appropriate market signals to producers. There is no environmental impact of this amendment.

The initial payment is not expected to 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. Even under worst-case market conditions, there is not expected to be a risk of a deficit since market returns are expected to exceed the recommended initial payment levels.

Consultation

The initial payment level has been recommended by the CWB. The Department of Finance has been consulted and concurs with the recommendation.

Implementation, enforcement and service standards

The schedules come into effect on February 1, 2010.

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

Sara Steeves
Crop Sector Policy Division
Agriculture and Agri-Food Canada
1341 Baseline Road
Ottawa, Ontario
K1A 0C5
Telephone: 613-773-2707

Footnote a
S.C. 1995, c. 31, ss. 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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