CBH slashes payment terms for growers
CBH has unveiled plans to slash its payment terms from seven to three days from October 1.
The change will mean new season, 2019-20 grain contracts with CBH will be paid within three business days following nomination in WA.
The new payment terms will apply to all grain purchased by CBH’s marketing and trading division, with slightly altered terms interstate where CBH does not operate as a bulk handler.
For South Australian, Victorian and New South Wales growers selling grain to CBH, the payment terms are three days from when CBH receives the transfer from the relevant bulk handler.
CBH accumulations head Trevor Lucas said the change applied to cash contracts and pool payments from October 1, as well as deferred nominations for payment between July 1-5, 2020.
“Delivering three day payments has been a priority for CBH marketing and trading heading into this year’s harvest,” he said.
“It is part of our commitment to return value to our growers.
“It will result in cash landing in the pockets of growers who do business with us faster, improving their cash flow and allowing them to better support their other business needs.”
Payment terms have become a hot topic with farmers after the collapse of a handful of grain traders across Australia, predominantly in the eastern states.
This included mid-tier east coast trader Lempriere Grain, which went into administration in March with debts of about $18.8 million.
WAFarmers grains section president Duncan Young said the new terms would “reduce risk” for growers delivering to the network.
“I think it brings them in line with a number of other grain traders, and is very good,” he said.
“In growers’ eyes, it reduces potential risk... not that we have a lot with the cooperative.”
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