The Victorian Farmers Federation (VFF) is encouraging members to do their due diligence on grain buyers to minimise the potential for non-payment.
VFF Grains Group President Ashley Fraser said it’s important farmers minimise the risks of non-payment for produce.
“The VFF has led the campaign to reduce terms for grain sales to help lower the risks of non-payment for growers.”
“Faster payments means less risk of being caught by a failing trader.”
“We have recommend growers ask for payments within 2 days, rather than the old 30 day terms,” Mr Fraser said.
Mr Fraser said the faster growers get paid, the less risk they have of exposure to a trader defaulting on payment.
“A B-double truck of grain each day for a week is worth over $50,000 and a month of daily loads can total over $200,000. Nobody wants to lose thousands of dollars, so make sure you sell to a reputable buyer who pays quickly.”
“Some growers also look for deferred payments terms to manage their cash flow. If you do this, make doubly sure you sell to a reputable buyer as your risk of non-payment is higher.”
“Remember when looking at prices on offer that a price much higher than everyone else is probably too good to be true,” Mr Fraser said.
Ashley Fraser, VFF Grains Group President, 0418 176 764
Ryan Moloney, VFF, 0400 874 589