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    Ashley Fraser.

AgLife: Farmers urged to take care selling grain

Victoria’s peak farming group is encouraging its members to follow a due-diligence process in dealing with grain buyers to minimise the potential for non-payment.

Victorian Farmers Federation Grains Group president Ashley Fraser said it was important farmers minimised 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,” he said.

“Faster payments means less risk of being caught by a failing trader.

“We have recommended growers ask for payments within two days, rather than the old 30-day terms.”



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Mr Fraser said the faster growers were paid, the less risk they had of exposure to a trader defaulting on payment.

 “A B-double truck of grain each day for a week is worth more than $50,000 and a month of daily loads can total more than $200,000,” he said.

“Nobody wants to lose thousands of dollars, so farmers must make sure they sell to a reputable buyer who pays quickly.

“Some growers also look for deferred payment terms to manage their cash flow. 

“If you do this, make double 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.”

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The entire November 25, 2020 edition of The Weekly Advertiser is available online. READ IT HERE!

The entire November 25, 2020 edition of AgLife is available online. READ IT HERE!