Vol. 138, No. 16 August 11, 2004

Registration
SOR/2004-173 30 July, 2004

CANADIAN WHEAT BOARD ACT

Regulations Amending the Canadian Wheat Board Regulations

P.C. 2004-888 30 July, 2004

Her Excellency the Governor General in Council, on the recommendation of the President of the Treasury Board and Minister responsible for the Canadian Wheat Board, 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 beginning on August 1, 2004 and ending on July 31, 2005 and known as No. 1 Canada Western Red Spring (12.5% protein content) is

(a) $150 for straight wheat;

(b) $142 for tough wheat;

(c) $134.50 for damp wheat;

(d) $142 for straight wheat, rejected on account of stones;

(e) $134 for tough wheat, rejected on account of stones; and

(f) $126.50 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 beginning on August 1, 2004 and ending on July 31, 2005 and known as No. 1 Canada Western Amber Durum (12.5% protein content) is

(a) $141 for straight wheat;

(b) $133 for tough wheat;

(c) $125.50 for damp wheat;

(d) $133 for straight wheat, rejected on account of stones;

(e) $125 for tough wheat, rejected on account of stones; and

(f) $117.50 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 beginning on August 1, 2004 and ending on January 31, 2005 and known as No. 1 Canada Western is

(a) $84 for straight barley;

(b) $77 for tough barley;

(c) $70.50 for damp barley;

(d) $79 for straight barley, rejected on account of stones;

(e) $72 for tough barley, rejected on account of stones; and

(f) $65.50 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 beginning on August 1, 2004 and ending on July 31, 2005 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) $133 for straight barley;

(b) $126 for tough barley; and

(c) $119.50 for damp barley.

COMING INTO FORCE

2. These Regulations come into force on August 1, 2004.

REGULATORY IMPACT
ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Description

Section 26 of the Canadian Wheat Board Regulations establishes initial payments for the Canadian Wheat Board (CWB) pool accounts. These payments are paid to producers upon delivery of grains into the elevator system over the course of a pool period. The amendment establishes initial payments for the 2004-2005 pool period, with a comparison to those set a year earlier, for the base grades of wheat (an increase of $20 per metric tonne), of amber durum wheat (an increase of $11 per metric tonne), of barley (an increase of $4 per metric tonne) and of designated barley (a decrease of $9 per metric tonne), effective August 1, 2004.

Alternatives

Alternatives considered were to retain the existing initial payment levels. Initial payments are announced to reflect to producers the market conditions in which their crops must compete. These conditions are based upon current and forecast supply/demand relationships for grains both domestically and internationally and which can change very rapidly as markets react to a multitude of market factors. Currently, world production of wheat and coarse grains are forecast to increase significantly from the 2003-2004 levels. However, the tight world stocks of wheat and coarse grains and the strong world demand for these grains is expected to result in world prices in 2004-2005 that are similar to those in 2003-2004.

Benefits and Costs

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

The higher initial payments will result in higher returns to producers on a per tonne basis. Government policy has been to avoid using initial payments as a means to providing farm income support. The higher initial payments will transmit to producers the appropriate market information. Initial payments can be increased during the pool period, depending on international market prices and conditions. There is no environmental impact of this amendment.

Consultation

This amendment has been discussed with CWB and 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 Commodity 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

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