LAST year’s record State harvest continues to reward growers, after the CBH Group announced it would deliver its highest ever rebate of $158 million to those who delivered and sold grain through the co-operative in 2016-17.
Growers will receive up to $12.75 per tonne to offset fees this season, almost three times the previous record rebate of $4.55 per tonne in 2014.
The CBH rebate program was introduced in 2009 and is made up of three rebates for marketing and trading, operations, and investment.
The total $12.75 comprises a $6.25 per tonne rebate from the marketing and trading division, a $6 per tonne rebate from operations and $0.50 investments rebate.
CBH chief financial officer Ed Kalajzic said the record rebate was a result of last year’s 16 million tonne harvest, and improved efficiencies throughout the network.
“We’re proud to be able to increase our support for growers to a record amount this season – an outcome that was in part achieved by a record harvest last season and our continued drive to find and implement efficiencies throughout the supply chain,” Mr Kalajzic said.
“Our marketing and trading division performed exceptionally well despite tough trading conditions, returning $50 million of rebates, while investments returned $8.3 million.
“Meanwhile, the record harvest in 2016-17 doubled the rebate return from operations to $99 million, not only are we in a good position to fund the Network Strategy but we can offer a rebate on top.
“While we are pleased with our ability to return a strong rebate this year – and keep fees flat as well – our future performance will be strongly influenced by the size of the harvest which, as everyone knows, can fluctuate from year to year.”
CBH has announced several changes to the rebates program this harvest, with new features allowing for increased flexibility.
A wider range of storage and handling fees will be available for growers to apply their rebate against, with options expanded to include receival, freight, storage and outturn fees.
The expiration period for rebates has been extended from three years to six years, in a bid to reduce the impact of poor seasonal conditions on growers.
Growers who are planning family succession or retirement can also take a one-off option to transfer or cash out any unused rebates.
Mr Kalajzic said the changes would have a significant impact on growers enduring challenging seasonal conditions this year, particularly in the north of the agricultural region.
“The flexibility introduced to the rebates program this harvest will go a long way for growers who have been impacted by less than favourable weather for the growing season,” he said.
“With this in mind, growers who are not able to deliver grain this harvest are able to carry over their rebate to subsequent years, with the expiration period for rebates extended from three to six years.
“For growers who are able to deliver some grain, they will have a wider range of storage and handling fees to apply their rebates against, with options expanded beyond just the receival fee to include freight, storage and outturn fees.
“As an exception this year we will also allow growers to use unused rebates to offset future fertiliser purchases, if they have not been able to exhaust them with receival and freight fees.
“We’ve listened to the feedback and are pleased to be able to offer growers optionality for their rebates, along with extending the expiration period that will allow growers to better manage their plans in the short to medium term.”
A new online Rebates Portal will be available this month on CBH’s online grain platform Loadnet.
The Rebates Portal will give growers online access to view their rebate balance, choose and manage which fees to offset their rebates, request a one-off transfer or cash-out if leaving farming, and view all transactions.
