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Vol. 140, No. 16 — August 9, 2006
Registration CANADIAN WHEAT BOARD ACT Regulations Amending the Canadian Wheat Board Regulations P.C. 2006-727 July 24, 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 beginning on August 1, 2006 and ending on July 31, 2007 and known as No. 1 Canada Western Red Spring (12.5% protein content) is (a) $137.50 for straight wheat; (b) $129.50 for tough wheat; (c) $122 for damp wheat; (d) $129.50 for straight wheat, rejected on account of stones; (e) $121.50 for tough wheat, rejected on account of stones; and (f) $114 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, 2006 and ending on July 31, 2007 and known as No. 1 Canada Western Amber Durum (12.5% protein content) is (a) $118 for straight wheat; (b) $110 for tough wheat; (c) $102.50 for damp wheat; (d) $110 for straight wheat, rejected on account of stones; (e) $102 for tough wheat, rejected on account of stones; and (f) $94.50 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, 2006 and ending on January 31, 2007 and known as No. 1 Canada Western is (a) $74 for straight barley; (b) $67 for tough barley; (c) $60.50 for damp barley; (d) $69 for straight barley, rejected on account of stones; (e) $62 for tough barley, rejected on account of stones; and (f) $55.50 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, 2006 and 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) $117 for straight barley; (b) $110 for tough barley; and (c) $103.50 for damp barley. COMING INTO FORCE 2. These Regulations come into force on August 1, 2006. 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 2006-2007 pool period, with a comparison to those set a year earlier, for the base grades of wheat (an increase of $10.50 per tonne), of amber durum wheat (a decrease of $12 per tonne), of barley (an increase of $1 per tonne) and of designated barley (a decrease of $2 per tonne). Alternatives Alternatives considered were to establish initial payment at higher 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. World production of wheat and coarse grains in 2006-2007 is forecast to decrease from the level of 2005-2006. The lower world supplies of wheat and coarse grains and the strong world demand for these grains are expected to result in higher world prices in 2006-2007. However, the stronger Canadian dollar in relation to the US dollar in 2006-2007, compared to 2005-2006, will moderate the increase in prices in Canadian dollar terms, ceteris paribus. Benefits and Costs The initial payments established by these Regulations indicate the returns anticipated from the market, as of mid-June, 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 payment for wheat 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 payment for wheat 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 The Canadian Wheat Board 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
S.C. 1995, c. 31, s. 2(1) S.C. 1995, c. 31, s. 4 C.R.C., c. 397 |
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