AWB Limited today set the Nominated Estimated Pool Returns (NEPR) for the 2006/07 AWB Harvest Finance options.
Head of Harvest Finance, Cam Whitehead, confirmed the prevailing Estimated Pool Returns, as set by AWB National Pool on 13th November 2006, will be set as the NEPR rates. A list of the 2006/07 NEPRs for each pay grade is included over page.
“The NEPR serves as the basis upon which we make underwritten loans and payments to our clients,” Mr Whitehead said.
“By setting the NEPR now AWB Harvest Finance is underwriting loans and payments at levels over $30/mt higher than the overall return for the last two seasons National Pools.
“Our Harvest Finance products are fully underwritten, and, particularly in the current environment, the real value of this is that growers’ have total protection and peace of mind that their cashflow is secure in the face of changing and challenging market conditions.
“With a range of options to select from, AWB Harvest Finance’s offering gives growers the flexibility and freedom to choose their payment option load by load with the ability to use a single option or combine payment options to suit their needs,” Mr Whitehead said.
The nature and timing of payment will vary according to the options selected by growers;
- Harvest Loan – majority of cashflow at harvest via a loan based on 90% of the NEPR, less estimated costs.
- Flexible Drawdown Loan – establishes a credit limit based on a minimum of 90% of the NEPR, less estimated costs. Growers may nominate an amount to be automatically drawn down at harvest or they can drawdown up to the remainder of their total credit limit when it suits them. The total credit limit will be reduced as AWB National Pool distributions are paid.
- Advanced Payment – majority of cash at harvest in the form of a payment, rather than a loan. Initial payment based on 80% of the NEPR, less estimated costs.
The Harvest Loan, Advanced Payment and Flexible Drawdown are fully underwritten. This means that where the total AWB National Pool distributions are lower than the growers’ loan or payment amount, growers won’t be asked to repay any amount loaned or paid to them.
Underwriting for the 2006/07 season remains at $1.60/t for all grades.
For further information on AWB Harvest Finance solutions growers should contact their local Grain Marketer or contact the AWB Grower Service Centre on 1800 054 433.
Nominated Estimated Pool Return 2006/07
AWB National Pool (Number 1) ($/t FOB, GST exclusive):
|
Pool Pay Grade Base Rate
|
Nominated Estimated Pool Return
|
|
APH (13% protein 5% screenings 12.5% moisture)
|
263.50
|
|
APHP (13% protein 5% screenings 12.5% moisture)
|
268.50
|
|
AH (11.5% protein 5% screenings 12.5% moisture)
|
253.00
|
|
AHP (11.5% protein 5% screenings 12.5% moisture)
|
258.00
|
|
AUH (11.5% protein 5% screenings 12.5% moisture)
|
248.00
|
|
APW (10.5% protein 5% screenings 12.5% moisture)
|
248.00
|
|
APWT (10.5% protein 5% screenings 12.5% moisture)
|
254.00
|
|
ASW (10% protein 5% screenings 12.5% moisture)
|
235.00
|
|
AGP (10% protein 5% screenings 12.5% moisture)
|
230.00
|
|
AUW (10% protein, 5% screenings, 12.5% moisture)
|
230.00
|
|
ASF1 (8.5% protein 5% screenings 12.5% moisture)
|
240.00
|
|
ASWN (10.5% protein 5% screenings 12.5% moisture)
|
255.00
|
|
APN (10.5% protein 5% screenings 12.5% moisture)
|
269.00
|
|
FEED (Flat protein, screenings and moisture)
|
205.00
|
|
APDR (13% protein 5% screenings 12.5% moisture)
|
261.00
|
|
AGDR (10% protein 5% screenings 12.5% moisture)
|
225.00
|
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