Vol. 146, No. 1 — January 4, 2012
SI/2011-120 January 4, 2012
MARKETING FREEDOM FOR GRAIN FARMERS ACT
Order Fixing August 1, 2012 as the Day on which Part 2 of the Act Comes into Force
P.C. 2011-1704 December 15, 2011
His Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to section 40 of the Marketing Freedom for Grain Farmers Act, chapter 25 of the Statutes of Canada, 2011, hereby fixes August 1, 2012 as the day on which Part 2 of that Act comes into force.
(This note is not part of the Order.)
This Order in Council fixes August 1, 2012, as the date on which Part 2 of the Marketing Freedom for Grain Farmers Act comes into force.
In accordance with section 40 of the Marketing Freedom for Grain Farmers Act (the Act), the Governor in Council fixes the date on which Part 2 of this Act comes into force. The referenced Order in Council fixes August 1, 2012, as the date on which Part 2 of the Act comes into force.
The Act was introduced in the House of Commons on October 18, 2011. The purpose of this legislation is to remove the restrictions on the marketing of wheat and barley grown in Western Canada, establish a voluntary interim Canadian Wheat Board (CWB), and provide for the privatization of the CWB within five years of the legislation coming into force.
Part 1 of the Act amends the Canadian Wheat Board Act to change the governance structure of the CWB and allows market participants to contract for sales to take place after Part 2 comes into force. Part 2 ends the CWB monopoly. It replaces the Canadian Wheat Board Act with the Canadian Wheat Board (Interim Operations) Act that continues the CWB and charges it with the marketing of grain through voluntary pooling. Part 3 provides for the possible continuation of the CWB under other federal legislation, while Part 4 provides for its winding up if no such continuation occurs. Finally, Part 5 provides for the repeal of the Canadian Wheat Board (Interim Operations) Act enacted by Part 2.
Part 2 contains the Canadian Wheat Board (Interim Operations) Act. The date on which this Part comes into force must be fixed by the Governor in Council. Fixing the date as August 1, 2012, now will provide certainty for the grain industry and allow market participants to plan their operations, which include forward contracting.
There are no financial implications to the Government associated with this Order. Fixing the date for Part 2 of the Act to come into force will allow industry, including the CWB, to begin forward contracting for the new crop year, which will have a large positive financial implication.
Through the Working Group on Marketing Freedom, Agriculture and Agri-Food Canada heard from over 50 organizations and received 20 written submissions representing the entire grain value chain. Stakeholders also appeared before the House of Commons and Senate committees to give testimony on this legislation in 2011. The Government has consulted widely on the issue of the CWB monopoly since 2006. There is divided opinion, but strong support for ending the debate and moving ahead.
The passing of the Act fulfills the Government’s commitment to provide marketing freedom to Western Canadian grain farmers. Agriculture and Agri-Food Canada has broadly communicated these changes and has developed www.agr.gc.ca/freedom, which provides information on the Act including fact sheets, frequently asked questions, speeches and key documents. Given the key role that this Order plays in allowing forward contracting to begin and providing business certainty, it will be important to widely communicate the August 1, 2012, date. A news conference is planned shortly after Bill C-18 receives Royal Assent, where these dates will be highlighted.
Crop Sector Policy
Strategic Policy Branch
Agriculture and Agri-Food Canada