Farmers who utilised AWB’s harvest finance for their 2011/12 wheat pool deliveries will benefit from a $40 million top-up payment that will occur overnight on Friday 3rd February and will appear in bank accounts on Saturday 4th February.
The top-up applies to all grades in AWB’s eastern, SA and WA pools and means that AWB harvest finance clients will receive (or have available) payments representing around 82.5% of the current estimated pool return (EPR) for 2011/12 season.
AWB’s Jon White said the top-up ranged from $13 to $75 a tonne, depending on grade.
“Our initial harvest payments on delivery were based on our nominated estimated pool return that was set in November, however since that time pool estimates for many grades have increased, so we are passing this value to farmers through this top-up. We have also increased our level of pricing in our pools which builds greater confidence in our EPRs,” Mr White said.
“Any farmer who is still deciding how to market their wheat might like to consider that deliveries made now under the Advance payment option will automatically be paid at 82.5%, less applicable costs, and funds will be paid within seven days of delivery,” Mr White said.
With this top-up a farmer who opts for the AWB loan now has access to a credit limit equal to 82.5% of pool returns less costs. For deliveries already made the top-up will either have automatically been paid into the farmer’s account or is available to draw down when it suits them, meaning farmers have complete flexibility with managing cash flows.
“Farmers planning to utilise AWB’s pools should make delivery arrangements promptly by either direct delivering or taking a pool access contract,” Mr White said.
“It’s an attractive cash flow, although farmers still deciding on market options should consider moving soon as pool choices are beginning to close off; wheat pools in all Victorian and New South Wales port zones close at 5pm Friday 3rd February 2012, the South Australian Thevenard port zone, durum pools and Queensland port zones are already closed.
“We will start closing other ports zones in Western Australian and South Australia and these may close without notice.
“We would encourage any farmer wanting to explore the cash flow options available should contact our grain marketers or call AWB’s farmers services centre on 1800 4GRAIN (1800 447 246) regarding their grain marketing,” Mr White said.
Media contact: Peter McBride 03 9268 7362 or 0417 662 451