mmg.com.au

Farmers who utilised Australian Wheat Board's harvest finance for their 2011-12 wheat pool deliveries benefited from a $40million top-up payment on February 3.

The top-up applied to all grades in AWB’s eastern, SA and WA pools and meant AWB harvest finance clients will receive (or have available) payments representing about 82.5 per cent of the current estimated pool return (EPR) for the 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 per cent, less applicable costs, and funds will be paid within seven days of delivery.’’

With this top-up, a farmer who opts for the AWB loan now has access to a credit limit equal to 82.5 per cent 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.