CBH changes Pre-Pay to benefit growers

12 Feb, 2016 01:00 AM

CBH has revised its Pre-Pay Advantage (PPA) product in 2016, extending the repayment period.

PPA is a pre-payment option for grain growers wanting to access early cash flow prior to harvest.

CBH financial products manager Jacinta Kelly said grower feedback had helped to restructure the product to suit their needs.

"We have listened to growers and noted that the main change growers want is an extension of the repayment period," Ms Kelly said.

"This year, we have extended the repayment period to July 31, 2017, subject to grain being delivered to CBH by January 31, 2017.

"This provides growers with an extra six months to price their grain and repay their PPA loan and tonnage commitment.

"We have also reduced the minimum application size from 300 tonnes to 250t which opens up the opportunity for growers with smaller farming operations to apply for the product."

The other features of the product remain the same.

"We are in a good place to ensure our Pre-Pay Advantage product again assists growers in achieving their farm business goals," Ms Kelly said.

"We have achieved some great milestones with PPA over the past few years including lending more than $100 million in pre-harvest funds to WA growers in 2015.

"We hope to build on this in 2016."

Binnu grower Nolan Harris has taken advantage of PPA in the past and said the new changes would help the product be accessible to more growers.

"Pre-Pay Advantage is a simple, low cost product which provides quick and easy access to funds when required," he said.

Mr Harris said the funding being available early was helpful in his operation and the quick and easy access were benefits.

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12/02/2016 5:16:43 AM, on Farm Weekly

Yet another example of storage and handling charges needing to remain high to fund politically popular loss making ventures. CRoss subsidization is killing this company.


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