Vol. 147, No. 5 — February 27, 2013

Registration

SOR/2013-19 February 14, 2013

CANADIAN WHEAT BOARD (INTERIM OPERATIONS) ACT

Canadian Wheat Board (Interim Operations) Regulations

P.C. 2013-141 February 14, 2013

His Excellency the Governor General in Council, on the recommendation of the Minister of Agriculture and Agri-Food, pursuant to sections 34, 38 and 41 of the Canadian Wheat Board (Interim Operations) Act (see footnote a), makes the annexed Canadian Wheat Board (Interim Operations) Regulations.

CANADIAN WHEAT BOARD (INTERIM OPERATIONS) REGULATIONS

INTERPRETATION

Definitions

1. The following definitions apply in these Regulations.

  • “Act”
    « Loi »

  • “Act” means the Canadian Wheat Board (Interim Operations) Act.

  • “Lower St. Lawrence”
    « Bas-Saint-Laurent »

  • “Lower St. Lawrence” means the region along the St. Lawrence River between Montréal and Port-Cartier.

ASSIGNMENT

Assignment of right to payment

2. (1) The right to payment under a certificate issued by the Corporation in accordance with Part 2 of the Act may be assigned if an assignment is requested by

  • (a) the executor or administrator of the estate or liquidator of the succession of the producer named in the certificate; or

  • (b) a producer who is entitled to the grain referred to in the certificate and who received the certificate as collateral security in respect of a claim against the producer named in the certificate.

Condition precedent

(2) The Corporation may require a person referred to in subsection (1), as a condition precedent to the assignment of the right to payment under a certificate, to provide the Corporation with evidence of the person’s right to the assignment.

DESIGNATION OF SELECTED AND ACCEPTED BARLEY

Designation of barley

3. In accordance with subsection 38(1) of the Act, all barley of the following grades that has been delivered to the Corporation to be sold by the Corporation to purchasers who, with the consent of the Corporation, have selected and accepted the barley for use in the production of barley flour, barley malt or pot or pearled barley, is designated for the purposes of Part 2 of the Act:

  • (a) Select Food Canada Western Two-row;
  • (b) Select Food Canada Western Six-row;
  • (c) Select Food Canada Western Two-row Hulless;
  • (d) Select Food Canada Western Six-row Hulless;
  • (e) Select Malting Canada Western Two-row;
  • (f) Select Malting Canada Western Six-row;
  • (g) Select Malting Canada Western Two-row Hulless;
  • (h) Select Malting Canada Western Six-row Hulless; and
  • (i) all other grades of barley.

DESIGNATION OF AMBER DURUM WHEAT

Designation of amber durum wheat

4. In accordance with subsection 38(1) of the Act, amber durum wheat of the following grades that is delivered to the Corporation is designated for the purposes of Part 2 of the Act:

  • (a) No. 1 Canada Western;
  • (b) No. 2 Canada Western;
  • (c) No. 3 Canada Western;
  • (d) No. 4 Canada Western;
  • (e) No. 5 Canada Western; and
  • (f) all other grades of amber durum wheat.

POOLING POINTS

Places

5. In accordance with subsection 2(3) of the Act, the following places are designated as pooling points for the purposes of the Act:

  • (a) Vancouver; and
  • (b) Lower St. Lawrence.

REPEALS

6. The following Regulations are repealed:

  • (a) the Canadian Wheat Board Regulations (see footnote 1);
  • (b) the Canadian Wheat Board Advisory Committee 1994 Election Regulations (see footnote 2);
  • (c) the Regulations Respecting the Election of Directors of The Canadian Wheat Board (see footnote 3); and
  • (d) the Canadian Wheat Board Contingency Fund Regulations (see footnote 4).

COMING INTO FORCE

August 1, 2013

7. These Regulations come into force on August 1, 2013.

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the Regulations.)

Issue

On August 1, 2012, the Canadian Wheat Board (Interim Operations) Act came into force and the Canadian Wheat Board Act was repealed. The Canadian Wheat Board Regulations were enabled under the Canadian Wheat Board Act. These Regulations need to be replaced with a new set of regulations to reflect the aforementioned legislative change and changes made to the barley classes in the Canadian Grain Commission’s Grain Grading Guide on August 1, 2012.

Background

The Marketing Freedom for Grain Farmers Act, which received Royal Assent on December 15, 2011, changed the structure of the Canadian Wheat Board by immediately removing all elected directors and by establishing a new act to govern the operations and marketing authority of the Canadian Wheat Board, which was to come into force at a future date. On August 1, 2012, the Canadian Wheat Board (Interim Operations) Act came into force and the Canadian Wheat Board Act was repealed, removing the Canadian Wheat Board’s single desk marketing authority.

The Canadian Wheat Board Regulations were enabled under the now repealed Canadian Wheat Board Act. Many sections of the Canadian Wheat Board Regulations became spent with the repeal of the Canadian Wheat Board Act and the coming into force of the Canadian Wheat Board (Interim Operations) Act on August 1, 2012. For example, all references and sections related to permit books; extension to barley; licences; interprovincial transportation and trade; assignable quotas and acres; the payment of a sum certain; and prescribed forms for producer certificates are no longer required or no longer have enabling authority under the Canadian Wheat Board (Interim Operations) Act, which is currently in force. Therefore, the Canadian Wheat Board Regulations should be replaced by a new, smaller set of regulations, the proposed Canadian Wheat Board (Interim Operations) Regulations, which would be enabled by the current Act. These new Regulations would clarify what is still applicable and amend the designated barley grade names to match the Canadian Grain Commission’s Grain Grading Guide, which was updated on August 1, 2012.

In addition to replacing the Canadian Wheat Board Regulations with the Canadian Wheat Board (Interim Operations) Regulations, three other sets of related but spent regulations need to be repealed at the same time as a housekeeping measure. These separate sets of regulations either were already spent or became spent on August 1, 2012. The Canadian Wheat Board Advisory Committee 1994 Election Regulations were already spent. The Regulations Respecting the Election of Directors of The Canadian Wheat Board became spent on December 15, 2011, when the Marketing Freedom for Grain Farmers Act received Royal Assent and removed the Canadian Wheat Board’s elected director positions. The Canadian Wheat Board Contingency Fund Regulations became spent on August 1, 2012, when their enabling authority, the Canadian Wheat Board Act, was repealed.

Objectives

The proposed Canadian Wheat Board (Interim Operations) Regulations would set out to

  • replace the Canadian Wheat Board Regulations with a new set of regulations, the Canadian Wheat Board (Interim Operations) Regulations, under the enabling authority of the Canadian Wheat Board (Interim Operations) Act;
  • amend the designated barley grade names to match the Canadian Grain Commission’s Grain Grading Guide, which was updated on August 1, 2012; and
  • repeal spent sets of regulations related to electing the Canadian Wheat Board directors and the Canadian Wheat Board’s contingency fund, which are now spent as a result of the repeal of their enabling authority, the Canadian Wheat Board Act, on August 1, 2012.

Description

The proposed Canadian Wheat Board (Interim Operations) Regulations would replace the outdated Canadian Wheat Board Regulations, amend the designated barley grade names to match the Canadian Grain Commission’s updated Grain Grading Guide, and, as a housekeeping measure, repeal sets of regulations related to electing the Canadian Wheat Board directors and the Canadian Wheat Board’s contingency fund, which are now spent.

“One-for-One” Rule

The “One-for-One” Rule applies for the proposed Canadian Wheat Board (Interim Operations) Regulations. The proposal is considered an “OUT” under the rule. A decrease in business administrative burden is expected due to the removal of the Canadian Wheat Board’s permit book system. Under the proposed regulations and current Canadian Wheat Board (Interim Operations Act), Western Canadian wheat and barley farmers would no longer be required to market their wheat and barley through the Canadian Wheat Board, and the permit book system used by the Canadian Wheat Board during the monopoly era would be removed. Western Canadian wheat and barley farmers would no longer have to fill out an annual permit book application.

The following parameters were used to monetize the estimated “OUT” for the proposed Regulations:

  • A forecasted impact time period of 10 years beginning when the Canadian Wheat Board Regulations would be repealed;
  • A price base year of 2012;
  • A present value base year of 2012; and
  • A 7% discount rate.

In order to estimate the decrease in business administrative costs associated with the removal of the Canadian Wheat Board’s permit book system by the proposed Regulations, a group of Western Canadian wheat and barley farmers previously delivering to the Canadian Wheat Board were consulted. Surveyed wheat and barley farmers estimated that completing their annual permit book application and paperwork took approximately 30 minutes per annum. In addition to this, farmers were responsible for acquiring the appropriate application forms and ensuring that the permit book system had not changed, estimated to take approximately 15 minutes per annum, as well as maintaining their own filing systems and submitting the permit book and application, estimated to take an additional 15 minutes per annum. There are approximately 44 828 farmers impacted by the removal of the Canadian Wheat Board’s permit book system by the proposed Regulations. The expected decrease in annual business administrative costs is approximately $1,100,884, or $25.00 per farmer.

Small business lens

Not applicable.

Consultation

In preparation for the regulatory changes, Agriculture and Agri-food Canada consulted with the Canadian Wheat Board in January 2013 via telephone and email, and in person in Winnipeg, Manitoba.

A formal consultation with producer groups and organizations was not sought. A small group of farmer stakeholders were consulted to determine the estimated reduction in business burden associated with the proposed regulation. Farmer stakeholders were consulted in person or via telephone in January of 2013.

No letters of opposition are anticipated.

Rationale

The proposed regulatory changes are due to a policy change. The Canadian Wheat Board Regulations need to be replaced with a new set of regulations to reflect the coming into force of the Canadian Wheat Board (Interim Operations) Act, the repeal of the Canadian Wheat Board Act, and changes made to the barley grades in the Canadian Grain Commission’s Grain Grading Guide on August 1, 2012. In addition to replacing the Canadian Wheat Board Regulations, three other sets of related but spent regulations need to be repealed at the same time as a housekeeping measure. These separate sets of regulations are no longer required, and either were already spent or became spent on August 1, 2012, with the repeal of the Canadian Wheat Board Act.

These new Regulations would reflect the new marketing freedom environment.

These Regulations would be in effect until the Canadian Wheat Board is either privatized or dissolved and the Canadian Wheat Board (Interim Operations) Act is repealed, which is to happen no later than July 31, 2017, as required by the Marketing Freedom for Grain Farmers Act. At that time, the Canadian Wheat Board (Interim Operations) Regulations will cease to be in effect.

Implementation, enforcement and service standards

The proposed Canadian Wheat Board (Interim Operations) Regulations need to be made no later than February 28, 2013, in order to be in force for the Canadian Wheat Board’s next crop year, which begins on August 1, 2013.

The proposed Regulations fall under sections 34, 38 and 41 of the Canadian Wheat Board (Interim Operations) Act. Monitoring and enforcement of these Regulations would follow any enforcement procedures established in the Canadian Wheat Board (Interim Operations) Act.

Agriculture and Agri-Food Canada will be providing communications regarding the transition to marketing freedom, including information on the proposed Regulations.

Contacts

Tom Askin / Ashley Kearns
Crop Sector Policy Division
Agriculture and Agri-Food Canada
303 Main Street
Winnipeg, Manitoba
R3C 3G7
Email: Tom.askin@agr.gc.ca / Ashley.kearns@agr.gc.ca