Fertiliser costs hit the hip pocket
In Australia, “The amounts spent on fertilisers in general are the largest single variable cost for grain producers, and are 15-20% of all cash costs, or 20-25% of variable costs,” according to the International Plant Nutrition Institution.
The hip pockets of thousands of Australian grain growers would know this too well. Those growers fortunate to be nurturing a crop this year, are weighing up whether to spread their crops with a final application of urea.
Fertiliser costs can come at a time when cash flow in many farm businesses can be tight and a trip to the bank can be time consuming and costly. An alternative to bank debt is pre-harvest cashflow through AWB’s Production Advance, where growers can access value in their crop, of up to $100 per tonne for wheat and barley, when it is connected to a forward contract. Growers can access the funds by only needing to commit a small portion of their crop.
Growers producing Canola are also eligible for up to $200 per tonne through Production Advance.
This is a viable source of funding to cover crop production expenses and you’re also not restricted to only spending the funds with approved suppliers. It’s very quick and simple to set up, there are no costs to get preapproval, and once approved it typically takes between 24-48 hours to receive the funds.
Current season contracts that can secure Production Advance include:
- Basis Plus
- Fixed-grade contracts
- Multi-grade contracts
- Pool contracts, both Season Starter and Harvest Pool
For more information call 1800 447 246 or visit the AWB Production Advance page.
Originally published 13 September, 2018
For further information call the AWB Grower Service Centre - 1800 447 246
Your grain, your cash and a reliable partner
For the 2017/18 season, AWB recorded a payment performance of 99 percent on time, that is, we’ve paid 99 percent of payments within their contract terms.Read More
New longest train record set as grain heads to drought affected north
A new record for the longest train in the history of the ARTC network has been set. The train is 1.8 kilometres long and 102 wagons in length, pipping the former record of 101 wagons.Read More
Look forward to the futures for marketing opportunity
To take advantage of 19/20 prices there are a few different ways you can tackle it, you could sell a multi-grade, locking in both local basis and futures, or you could look at a swap locking in futures only.Read More
Wheat futures hit A$300 a tonne. Growers lock in 2020/21 forward contracts.
Wheat futures have hit A$300 a tonne (CME December 2020) providing a rare opportunity for growers to start to forward price at these high levels. Growers are seizing the opportunity using a popular forward contracting product called Basis PLUS.Read More