Vol. 145, No. 16 — August 3, 2011

Registration

SOR/2011-150 July 20, 2011

CANADIAN WHEAT BOARD ACT

ARCHIVED — Regulations Amending the Canadian Wheat Board Regulations

P.C. 2011-811 July 20, 2011

His 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. Subsections 26(1) to (4) 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 beginning on August 1, 2011 and ending on July 31, 2012 and known as No. 1 Canada Western Red Spring (12.5% protein content) is

  1. (a) $208.00 for straight wheat;
  2. (b) $200.00 for tough wheat; and
  3. (c) $192.50 for damp wheat.

(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 beginning on August 1, 2011 and ending on July 31, 2012 and known as No. 1 Canada Western Amber Durum (12.5% protein content) is

  1. (a) $215.00 for straight wheat;
  2. (b) $207.00 for tough wheat; and
  3. (c) $199.50 for damp wheat.

(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 August 1, 2011 and ending on January 31, 2012 and known as No. 1 Canada Western is

  1. (a) $155.00 for straight barley;
  2. (b) $148.00 for tough barley; and
  3. (c) $141.50 for damp barley.

(4) 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 August 1, 2011 and ending on July 31, 2012 and known as Select Canada Western Two-Row selected and accepted for use in the production of barley flour, barley malt or pot or pearled barley is

  1. (a) $230.00 for straight barley;
  2. (b) $223.00 for tough barley; and
  3. (c) $216.50 for damp barley.

COMING INTO FORCE

2. These Regulations come into force on August 1, 2011.

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. The amount per tonne of these payments is set annually for wheat, amber durum wheat, and designated barley, and semi-annually for feed barley. The current crop period’s initial payment amounts will expire on July 31, 2011; therefore, new initial payments for each of the pool accounts must be set for the 2011–12 crop period, which begins August 1, 2011.

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 grades, other than the base grade, 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 pool period.

The objective of this regulatory action is to establish the initial payment for the base grades of wheat, amber durum wheat, feed barley pool A and designated barley.

Description and rationale

Section 26 of the Canadian Wheat Board Regulations establishes the initial payments to be paid upon delivery for grain delivered to the CWB. This amendment establishes the initial payments for the 2011–12 pool period for the wheat, amber durum wheat, barley and designated barley 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, which are wheat, amber durum wheat, barley and designated barley.

Initial payments proposed for 2011–12 are higher for all four pools than those set a year ago. Wheat is $80 per tonne higher; amber durum wheat is $96 per tonne higher; barley is $67 per tonne higher; and designated barley is $92 per tonne higher. Initial payments can be increased during the pool period, depending on international market prices and conditions.

The initial payments established by these Regulations indicate the returns anticipated from the market, as of mid-June 2011. This allows both large and small producers to make their marketing decisions more efficiently based upon anticipated returns to their individual farms.

The proposed 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. The safety factor is set jointly by Agriculture and Agri-Food Canada and the Department of Finance on the gross value of the unpriced portion of each pool and ensures that, even if pooled returns are significantly lower than expected, a deficit would be unlikely to occur in any of the pools. 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 the appropriate market signals to producers. There is no environmental impact of this amendment.

Consultation

The 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 August 1, 2011. 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

Joynal Abedin
Crop Sector Policy Division
Agriculture and Agri-Food Canada
1341 Baseline Road
Ottawa, Ontario
K1A 0C5
Telephone: 613-773-2282

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