Pre-payments available for wheat farmers

Wheat being harvested near York.
Wheat being harvested near York.

CBH said it would provide a pre-|payment for any grain committed for delivery after the harvest.

The company handed out more than |$35 million in pre-harvest funds last year.

For the first time, Glencore would also offer farmers a cash advance seeding payment before they plant this year’s crop.

Farmers would be able to seek the funds from next month.

Glencore estimates the scheme could result in pre-payments of about $85 million to WA grain growers this year.

Jason Craig, CBH’s general manager of marketing and trading, said its funds would be available from July 1.

‘An interest rate of 7.25 per cent makes it attractive for purposes of either accessing funds at competitive rates or assisting through the peak debt periods of July to October,’ Mr Craig said.

‘Growers would have the flexibility to sell their committed grain to any CBH product at harvest ” cash or pool,’ he said.

Rural lobby group WAFarmers welcomed the announcement of the CBH and Glencore packages.

WAFarmers senior vice president and farm business spokesman Tony York said it was positive news for the industry.

‘The harvest advance has been readily accepted in previous years and the preparedness of grain marketers to take early commitments and supply funding is a welcome source of finance for many farmers,’ Mr York said.

‘This is the type of support many growers are looking for this year, when traditional sources of funding are becoming harder to secure.’

Mr York said a deeper pool of finance to get this year’s crop into the ground would result in farmers being able to get on with the business of growing crops.