New South Wales and Victorian growers will receive payment for their grain within two business days from the date of transfer this harvest, thanks to new payment terms from Emerald Grain.
The shorter payment terms – named Fast Pay – will become automatically available to growers who deliver grain to Emerald Grain sites and choose to sell that grain to Emerald through a cash or contract price.
The sped-up terms have been developed in response to grower feedback, according to Emerald Grain General Manager South East Ben Fleay.
“Growers have been telling us for a number of years that they need to be paid quickly at harvest.
“We’ve taken that feedback on board. This year growers who deliver and sell to Emerald can expect to see cash in the bank from us only two business days after they sell to Emerald.”
He said Fast Pay would only be offered on grain within Emerald Grain receival sites, as the company could control the timeliness of ticketing and transfer information.
“We are able to guarantee payment within two business days from the date of transfer within Emerald Grain sites, as long as that grain has been transferred correctly.”
Mr Fleay stressed that the shorter payment terms came at no cost to growers.
“We know that fast payments have been a top priority for growers. We are proud to have been able to put the mechanisms and financing in place to back it, without a dollar-per-tonne cost passed onto farm businesses.”
He said growers would automatically qualify for Fast Pay when transferring grain to an Emerald price or Emerald contract within an Emerald Grain site.
“Growers don’t need to sign anything to qualify. As long as their grain has been delivered to an Emerald site, and has been correctly transferred to an Emerald Grain contract price or cash price, they will be paid for that grain in two business days.”
Mr Fleay said Emerald Grain’s ability to shorten its payment terms was thanks to the backing of its parent company Sumitomo, one of the world’s largest diversified trading houses.
“While most other grain companies offer longer payment terms based on “End of Week”, Emerald Grain can pay growers within two business days from the date of transfer.
“These are industry-leading terms and we are proud to be able to offer them to growers who choose to deliver and sell to Emerald Grain,” Mr Fleay said.
Growers can attend upcoming Emerald Grain site meetings to find out more about Fast Pay.