Vol. 133, No. 23 — November 10, 1999

Registration
SOR/99-430 28 October, 1999

CANADIAN WHEAT BOARD ACT

Regulations Amending the Canadian Wheat Board Regulations

P.C. 1999-1959 28 October, 1999

Her Excellency the Governor General in Council, on the recommendation of the Minister of Natural Resources, pursuant to subparagraph 32(1)(b)(i), subsection 47(2) 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) (see footnote 1) of the Canadian Wheat Board Regulations (see footnote 2) are replaced by the following:

26. (1) The Corporation shall pay to producers selling and delivering wheat produced in the designated area to the Corporation the following sums certain per tonne basis in storage in Vancouver or Lower St. Lawrence, in respect of the grade No. 1 Canada Western Red Spring:

(a) $135 for straight wheat;

(b) $127 for tough wheat;

(c) $119.50 for damp wheat;

(d) $127 for straight wheat, rejected, account stones;

(e) $119 for tough wheat, rejected, account stones; and

(f) $111.50 for damp wheat, rejected, account stones.

(2) The Corporation shall pay to producers selling and delivering wheat produced in the designated area to the Corporation the following sums certain per tonne basis in storage in Vancouver or Lower St. Lawrence, in respect of the grade No. 1 Canada Western Amber Durum:

(a) $155 for straight wheat;

(b) $147 for tough wheat;

(c) $139.50 for damp wheat;

(d) $147 for straight wheat, rejected, account stones;

(e) $139 for tough wheat, rejected, account stones; and

(f) $131.50 for damp wheat, rejected, account stones.

(3) The Corporation shall pay to producers selling and delivering barley produced in the designated area to the Corporation the following sums certain per tonne basis in storage in Vancouver or Lower St. Lawrence, in respect of the grade No. 1 Canada Western:

(a) $100 for straight barley;

(b) $93 for tough barley;

(c) $86.50 for damp barley;

(d) $95 for straight barley, rejected, account stones;

(e) $88 for tough barley, rejected, account stones; and

(f) $81.50 for damp barley, rejected, account stones.

(4) The Corporation shall pay to producers selling and delivering barley produced in the designated area to the Corporation the following sums certain per tonne basis in storage in Vancouver or Lower St. Lawrence, in respect of the grade Special Select Canada Western Two-Row selected and accepted for use as pot barley or in malting or pearling:

(a) $150 for straight barley;

(b) $143 for tough barley; and

(c) $136.50 for damp barley.

COMING INTO FORCE

2. These Regulations come into force on November 2, 1999.

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 $10 per metric tonne), amber durum wheat (an increase of $25 per metric tonne), barley (an increase of $15 per tonne) and designated barley (an increase of $20 per tonne) for the 1999-2000 crop year. 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.

As a result of chapter 17, Statutes of Canada 1998, (Bill C-4, An Act to amend the Canadian Wheat Board Act), a 15-member Board of Directors — with ten members elected by producers — is responsible for managing and directing the affairs of The Canadian Wheat Board. This new management structure replaces the former management structure of up to five commissioners appointed by the Governor in Council.

Subsection 1(1) repealed the definition of "Board", which had previously been defined as "meaning The Canadian Wheat Board", subsection 1(5) amended the definition of "board" to mean "the board of directors of the Corporation..." and subsection 1(6) created a new definition of "Corporation", which is now defined as meaning The Canadian Wheat Board.

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 farmers' hands as quickly as possible when sales from pools are sufficient to allow this to be done without risk.

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 16.1 million tonnes of wheat, 3.7 million tonnes of amber durum wheat, 400,000 tonnes of barley and 2.4 million tonnes of designated barley during the 1999-2000 crop year, then these initial payment adjustments would represent about $300 million in additional grain receipts for wheat and barley producers. The initial payments established by this Regulation relates to the returns anticipated from the market and thus transmits 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 and quota acres.

Contact

Craig Fulton
Commerce Officer
Grains and Oilseeds Division
International Markets Bureau
Market and Industry Services Branch
Agriculture and Agri-Food Canada
Sir John Carling Building
930 Carling Avenue
Ottawa, Ontario
K1A 0C5
Tel.: (613) 759-7698
FAX: (613) 759-7476

Footnote 1

SOR/99-341; SOR/99-391

Footnote 2

C.R.C., c. 397

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