GRAIN: Uptake of deferred pool payments peak

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Interest in deferred payment options through AWB’s harvest pool have increased significantly from last year with many more growers electing to receive payments from July.

Many growers were taking a balanced approach to their marketing, selling a large portion for cash and receiving cashflow now, while also pooling a portion of their harvest and choosing the deferred payment option that suits there cash flow best. 

With cash prices so high, the pool may not be suitable for marketing all your wheat this year however many farmers are continuing to pool some wheat.  The pool provides a sound diversification strategy, it may deliver price upside and provides an ability to better control cashflows.  

Many growers in WA have had a substantial harvest and some are choosing to spread their marketing and when they receive payment.

For some growers a pool payment in July and October better suits their business .

Almost a third of all pool growers have chosen the deferred payment option, which is the highest on record.

There is no doubt cash has formed a big part of the marketing program for most growers this year but it is good to see that pools play an important role.

Be clear on your cashflows needs and business profitability and make the right decision for you.

Pool payment options may have tax consequences for your business so it’s important that you seek professional tax advice in relation to your particular circumstances.

Advertiser Content for AWB.