Parliamentary Research Branch

PRB 98-2E

INSTITUTIONAL ARRANGEMENTS

Prepared by:
Sonya Dakers, Science and Technology Division
Jean-Denis Fréchette, Economics Division
 September 1998

Under the Department of Agriculture and Agri-Food Act, the Minister is responsible for the management and direction of the department and its operations and for the administration of 30 Acts.

The name of the department changed to Agriculture and Agri-Food Canada (from Department of Agriculture) in 1993 when other government services relating to the agri-food industry were transferred to it from the departments of Industry, Science and Technology and Consumer and Corporate Affairs in order to bring all the agri-food services under the umbrella of one department.

The mandate of the department is to promote the growth, stability and competitiveness of the agri-food sector in the production, processing and marketing of crops and livestock. In cooperation with the Department of Foreign Affairs and International Trade, the department also has responsibility for fostering Canada’s international trade and commerce.

A Rural Secretariat was established in Winnipeg in February 1994 to address issues of particular concern to Canada’s rural areas.

The Canadian Wheat Board (CWB) is the sole exporter of western Canadian wheat and barley and the exclusive marketing body for these grains when sold for human consumption in Canada.

Since its establishment in 1935, the CWB has been a major agent of government policy on western grains. In 1949, its powers were extended to cover oats and barley. Oats were removed from Board jurisdiction on 1 August 1989. An attempt to remove barley in August 1993 was overturned by the Federal Court. A plebiscite held in the spring of 1997 confirmed that a majority of western farmers favoured keeping export barley under the Board’s jurisdiction. Feed barley, like feed wheat, can be marketed domestically through the CWB or by private grain marketing.

The CWB is a self-financing Crown corporation with five federally appointed commissioners and an 11-member advisory committee elected by prairie grain farmers. Board headquarters are in Winnipeg. On 3 December 1996, the federal government introduced Bill C-72, An Act to amend the Canadian Wheat Board Act and to make consequential amendments to other Acts (see LS-281). If passed, the bill would have replaced the Commissioners by a partially elected board of directors and made the Board more accountable to its clientele. The bill died on the Order Paper, however, when Parliament was prorogued for the election of 2 June 1997.

A similar bill, Bill C-4, reflecting concerns of stakeholders expressed at hearings of the Standing Committee on Agriculture and Agri-Food held in the previous Parliament, was given first reading in the House of Commons on 25 September 1997. It was referred before second reading to the Standing Committee on Agriculture and Agri-Food. Bill C-4 is essentially based on Bill C-72, as amended by the Standing Committee in April 1997, with some technical and other changes (see LS-292). The most substantive change would allow for the CWB’s mandate to be extended to other grains. The Committee made some amendments and the bill was reported back to the House on 7 November 1997. It received Royal Assent on 11 June 1998.

By authority of the Canada Grain Act, the mandate of the Canadian Grain Commission (CGC) is to deliver a high quality, safety and quantity assurance program, extending from farmers’ fields to end-use processing: it is meant to ensure grain of consistent quality that meets contract specifications.

Except for the costs of those activities related to food safety, R&D, and the supervision of commodity futures trading, the CGC finances most of its business costs from service fees.

In 1992, the CGC became a Special Operating Agency and in April 1995 began to function as a revolving fund. This operating authority allows CGC to take a more flexible, businesslike approach to meeting industry needs.

The Canadian International Grains Institute (CIGI) was created in 1972 as a non-profit, educational facility offering instruction in grain handling, transportation, marketing and technology. The CIGI tests the suitability of various grains and/or new processes in products consumed throughout the world. CIGI is funded 60% by Agriculture and Agri-Food Canada and 40% by the CWB.