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.
Source: VFF