MELBOURNE, AUSTRALIA — The Australian Wheat Board (AWB) announced on June 6 that the majority of farmers who selected the AWB Loan and Advanced Payment products will have received proceeds or had available credit limits increased from AWB’s top-up for the AWB 2011-12 wheat pools.
This payment means that AWB harvest finance clients will have received (or have available) payments representing an average of 90% of the current estimated pool return (EPR) for 2011-12 season wheat.
“The top-up applies to the majority of grades in the AWB’s Eastern, South Australian and West Australian pools and on average the top-up will be A$5 to A$7 a tonne with some grade receiving in excess of A$20 per tonne, which will assist farmers with cash flow which is important at this time of year,” said AWB’s Richard Williams. “While the top-up is not a guaranteed payment it is reflective of the solid progress of the 2011-12 pool marketing and sales program.
“In addition, AWB is pleased to announce a reduction in the interest rate applicable on the AWB Loan payment option.
“Effective June 8 the variable interest applicable on loans will be 6%, reflecting the full 0.75% in official interest rates cuts announced by the Reserve Bank of Australia in recent months.
“We are pleased to be able to pass on these reductions to lower overall costs to farmers using the AWB loan payment option.”
AWB’s 2011-12 EPRs for APW wheat are A$265 a tonne and ANW noodle wheat is A$278 a tonne in the WA Pool, APW is A$259 a tonne in the SA Pool and A$260 a tonne in the Eastern Pool (FOB, excl GST).
The next potential top up will be assessed and advised in October 2012.