AWB Limited today announced the initial Guaranteed Pool Return Rate (GPR) in Queensland for the 2001/2002 harvest at 80% of the estimated National Pool return at 20 August 2001. This return rate is guaranteed for the life of the pool.
AWB Limited Chief Executive Andrew Lindberg said growers who choose the National Pool Harvest Payment will receive the GPR, no matter what happens to the market or future pool return estimates.
The GPR or guaranteed pool return for the Prime Hard wheat at 13% protein and 5% screenings is $222.40/t FOB GST exclusive (80% of the estimated pool return at $278/t).
“Obviously, if the pool return increases, growers will receive that additional benefit,” Mr Lindberg said.
“We gave Queensland grain growers a commitment to be harvest ready by 1 September. Today, all site deductions are posted, cash at depot prices are available, and growers, who have already delivered to AWB have been paid,” said Mr Lindberg.
If growers elect to receive a Harvest Payment, they will receive the GPR (less estimated costs) within 21 days after delivery of their grain. Growers who elect to take only pool distributions are taking a risk as distributions are not guaranteed. So if the market falls, they will only receive the actual pool return which will be lower than the GPR.
“What this means for growers who take the Harvest Payment is that they will get access to instant cash at harvest and the certainty of a guaranteed pool return, no matter what happens,” Mr Lindberg said.
“If a grower prefers to rely upon the National Pool distribution option, they need to recognise that their cashflow will be dependent upon the international sales program achieved for each grade during each quarter,” said Mr Lindberg.
“The Harvest Payment gives growers the marketing power with the National Pool with a guaranteed minimum return.”
“By taking advantage of the National Pool Harvest Payment loan, growers will receive essential cash flow during harvest as well as the guaranteed pool return which gives you certainty that other marketing options simply can't offer,” said Mr Lindberg.