AWB Limited today announced its Estimated Pool Return (EPR) and the related Guaranteed Pool Return (GPR) for its 2001/2002 National Pool. The GPR is available for growers who choose AWB National Pool Harvest Payment.
“When growers choose AWB National Pool Harvest Payment they are provided a non-recourse loan and a GPR. So growers can rest easy, no matter what happens,” said AWB Limited’s Chief Executive, Mr Lindberg.
“The GPR is calculated at 90% of the EPR, which includes the GST input tax credits received by AWB Limited.
“This GPR is guaranteed for the life of the pool, regardless of whether the actual returns are reduced as a result of international price pressure.
“Obviously, if the pool return increases - growers will receive that additional benefit.
“Growers who want a guaranteed pool return and cash flow certainty at harvest, should choose the AWB National Pool Harvest Payment,” said Mr Lindberg.
In calculating the AWB National Pool Harvest Payment, growers should take 90% of the EPR and deduct estimated costs for storage, handling, transport, levies and finance.
AWB (International) Limited manages and estimates the pool return for the season, while AWB Limited provides underwriting for the GPR and finances a non-recourse loan for growers who choose the AWB National Pool Harvest Payment.
“Opting for the AWB National Pool Harvest Payment substantially protects growers from international market volatility,” said Mr Lindberg.
“Growers need to be aware if they elect instead to take the AWB National Pool distribution option, financial returns are not guaranteed and distributed amounts are uncertain,” said Mr Lindberg.
The AWB National Pool Harvest Payment is repaid via National Pool distributions each quarter. As it was last year, GST will be paid with each distribution against the outstanding loan balance. Growers are required to remit GST to the Australian Tax Office in accordance with their own tax obligations.