Vol. 137, No. 17 — August 13, 2003

Registration
SOR/2003-287 31 July, 2003

CANADIAN WHEAT BOARD ACT

P.C. 2003-1156 31 July, 2003

Her Excellency the Governor General in Council, on the recommendation of the Minister of Public Works and Government Services, 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 known as No. 1 Canada Western Red Spring (12.5% protein content) is

(a) $130 for straight wheat;

(b) $122 for tough wheat;

(c) $114.50 for damp wheat;

(d) $122 for straight wheat, rejected on account of stones;

(e) $114 for tough wheat, rejected on account of stones; and

(f) $106.50 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 known as No. 1 Canada Western Amber Durum (12.5% protein content) is

(a) $130 for straight wheat;

(b) $122 for tough wheat;

(c) $114.50 for damp wheat;

(d) $122 for straight wheat, rejected on account of stones;

(e) $114 for tough wheat, rejected on account of stones; and

(f) $106.50 for damp wheat, rejected on account stones.

(3) 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 barley known as No. 1 Canada Western is

(a) $80 for straight barley;

(b) $73 for tough barley;

(c) $66.50 for damp barley;

(d) $75 for straight barley, rejected on account of stones;

(e) $68 for tough barley, rejected on account of stones; and

(f) $61.50 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) of the Act in respect of the base grade of barley known as Special Select Canada Western Two-Row selected and accepted for use as pot barley or in malting or pearling is

(a) $142 for straight barley;

(b) $135 for tough barley; and

(c) $128.50 for damp barley.

COMING INTO FORCE

2. These Regulations come into force on August 1, 2003.

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 2003-2004 pool period, with a comparison to those set a year earlier, for the base grades of wheat (a decrease of $19 per metric tonne), of amber durum wheat (a decrease of $45 per metric tonne), of barley (a decrease of $25 per tonne) and of designated barley (a decrease of $5 per metric tonne), effective August 1, 2003.

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 is forecast to decrease modestly, while coarse grain production is forecast to increase significantly from the 2002-2003 levels. However, higher production of wheat and coarse grains in the major grain exporters is expected to result in lower world prices in 2003-2004 in comparison to 2002-2003. In addition, the expected strengthening of the Canadian dollar vis-à-vis the US dollar in 2003-2004, compared to 2002-2003, will result in lower 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 early 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 lower initial payments will result in lower 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 lower initial payments will transmit to producers the appropriate market information. However, 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 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 and quota acres.

Contact

Craig Fulton
Senior Commodity 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
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

NOTICE:
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