Canada Gazette Vol. 140, No. 23 — November 15, 2006
Source: http://canadagazette.gc.ca/partII/2006/20061115/html/sor263-e.html#REFb

Registration
SOR/2006-263 October 26, 2006

CANADIAN WHEAT BOARD ACT

Regulations Amending the Canadian Wheat Board Regulations

P.C. 2006-1140 October 26, 2006

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) 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 ending on July 31, 2007 and known as No. 1 Canada Western Red Spring (12.5% protein content) is

(a) $149 for straight wheat;
(b) $141 for tough wheat;
(c) $133.50 for damp wheat;
(d) $141 for straight wheat, rejected on account of stones;
(e) $133 for tough wheat, rejected on account of stones; and
(f) $125.50 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, 2007 and known as No. 1 Canada Western Amber Durum (12.5% protein content) is

(a) $140 for straight wheat;
(b) $132 for tough wheat;
(c) $124.50 for damp wheat;
(d) $132 for straight wheat, rejected on account of stones;
(e) $124 for tough wheat, rejected on account of stones; and
(f) $116.50 for damp wheat, rejected on account of stones.

(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 ending on January 31, 2007 and known as No. 1 Canada Western is

(a) $84.50 for straight barley;
(b) $77.50 for tough barley;
(c) $71 for damp barley;
(d) $79.50 for straight barley, rejected on account of stones;
(e) $72.50 for tough barley, rejected on account of stones; and
(f) $66 for damp barley, rejected on account of stones.

(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 ending on July 31, 2007 and known as Special Select Canada Western Two-Row selected and accepted as pot barley or for use in the malting or pearling process is

(a) $147 for straight barley;

(b) $140 for tough barley; and

(c) $133.50 for damp barley.

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.)

Description

Section 26 establishes in the Canadian Wheat Board Regulations the initial payments to be paid upon delivery for grains delivered to The Canadian Wheat Board. The amendment establishes a higher initial payment for the base grades of wheat (an increase of $11.50 per tonne), amber durum wheat (an increase of $22 per tonne), barley (an increase of $10.50 per tonne) and designated barley (an increase of $30 per tonne) for the 2006-2007 pool period. The Canadian Wheat Board advises that, upon review of the wheat, amber durum wheat, barley and designated barley pool accounts, increases in the initial payments are recommended.

Alternatives

In addition to the increases, the option of retaining the existing initial payments for wheat, amber durum wheat, barley and designated barley was considered. Maintaining the initial payments at current levels is not in keeping with The Canadian Wheat Board's objective of putting money in producers' hands as quickly as possible, when sales from pools are sufficient to allow this to be done without risk, or when there has been an increase in international prices for these grains. The Canadian Wheat Board has made sufficient sales since June 2006 that it can recommend an increase in the initial payment for the base grade in each pool account, which is the primary reason for the recommended increase.

Benefits and Costs

The higher initial payments will represent increased revenues to wheat and barley producers for their deliveries to The Canadian Wheat Board. If producers deliver to the pool accounts 15.5 million tonnes of wheat, 4.0 million tonnes of amber durum wheat, 125,000 tonnes of barley and 2.2 million tonnes of designated barley during the 2006-2007 pool period as expected, then these initial payment adjustments would represent about $310 million in additional grain receipts for wheat and barley 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 January 31, 2007 for barley and thereafter until the end of the pool period on July 31, 2007 for wheat, amber durum wheat and designated barley, producers will receive the higher initial payment. 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.

This forecast of the increase in receipts applies to the increases in the initial payments for all the grades in each pool account, and not just the increase in the initial payment for the base grade in each pool account.

The initial payments established by this Regulation 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

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

Compliance and Enforcement

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

Contact

Craig Fulton
Senior Analyst
Grains and Oilseeds Division
Markets and Trade Team
Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Avenue
Ottawa, Ontario
K1A 0C5
Telephone: (613) 759-7698
FAX: (613) 759-7476

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