Home' AWB Marketing Guide : Marketing Guide 2012 Contents Advanced Payment: Provides the majority of your entitlement
as payment within 7 days of delivery. The advanced payment is
calculated by reference to the 'nominated EPR' in respect of the
grain less our estimate of the financing costs and deductions. Your
financing cost will include an underwriting fee. Additional benefits
include potential Top-Up payments.
All pool payment options will include adjustments for golden
rewards quality increments and any early commitment premiums
applicable to your delivery.
The AWB Loan and Advance payment are paid or credit limit is
established with reference to a 'nominated EPR' which AWB will
publish at www.awb.com.au.
How do Top-Ups work?
Top-Ups are payments in addition to harvest payments received by
growers who select the AWB Loan Option or Advanced Payment
We may advise growers in advance of potential Top-Up payment
dates. The amount of Top-Up (if any) payable on a payment date is
dependent on a number of factors. We cannot guarantee that a
Top-Up payment will be made on a Top-Up payment date.
How does the underwriting operate (in relation to the AWB
Loan, Advanced Payment & Deferred Payment) and what
are the key benefits of underwriting?
An underwriting charge applies when you select the Advanced
Payment, the Deferred Payment or the AWB Loan Option.
Underwriting protects you against certain market risks that are out
of your direct control, including fluctuating domestic and global
wheat prices; fluctuation in the Australian dollar; overruns in supply
chain costs; quality claims or execution related costs.
Underwriting protects you to the extent that the total amount
payable to you under the AWB Pool Contract (adjusted for supplier
liabilities, payment errors and reduced by any encumbrances that
have priority at law) is less than:
• the aggregate of all amounts paid to you under the Advanced
Payment and Deferred Payment Options; and
• in relation to the AWB Loan Option, the amount required to
repay the amount owing to us.
In such circumstances, our recourse against you in relation to the
amounts that we have paid you is limited to so much of the final
amount that is applied under the AWB Pool Payment and Finance
Options Terms and Conditions to satisfy that debt. Our recourse
is not limited to such amount to the extent that the deficiency
arises because we have had to discharge any encumbrances
over your grain or, to satisfy supplier liabilities relating to your
grain. Underwriting does not cover payments made in error or
overpayments. In this instance you will be required to repay any
funds received. Additionally, our recourse is not limited under the
AWB Pool Contract if you are in default of the AWB Pool Contract.
Can I change from one payment option to another payment
You may request to change from one payment option to another
payment option. We may at our absolute discretion accept (with or
without conditions) or deny the request. If the request is accepted,
a ticket reversal fee may apply, you may not be refunded any fees
and charges incurred by you and you may be required to repay
amounts we have paid or credited to you in relation to your original
What are the fees and charges and how are they paid?
All fees, expenses and costs arising from the establishment,
marketing and sale of the pooled grains are deducted from the
gross proceeds received by us when we sell the grain. These
costs and charges include fees paid to Cargill related entities for
services rendered. The net return from the sale of the pooled grain
is returned to you as consideration for the sale of your grain to us
after taking into account the site-to-sea costs of receiving, storing
and moving grain to port (which differ on a site basis). Please see
"How is the EPR quoted and does the EPR take account of fees and
charges?" and www.awb.com.au for further information regarding
fees and charges.
FEES: Applicable to all AWB Pool Participants
Management fee (wheat & lupins)
$6.90 per tonne
Management fee (barley)
$5.90 per tonne
FEES: Applicable to all AWB Pool Participants if actioned
Ticket reversal fee (for approved ticket reversals) $200.00
Administrative fee (encumbrances)
Administrative costs and expenses (for wash-outs) $200.00
FEES: Exclusive to Finance Customers
Financing fee (Advance Payment
and Deferred Payment)
2012/13 TBA prior to harvest
Refer schedule at www.awb.com.au
Interest (AWB Loan)
2012/13 season TBA prior to
Underwriting fee (AWB Loan) $1.50 per tonne
Royalties and Levies
End point royalties
Charged to all grower participants
who use seed varieties that are
subject to end point royalty collection
and Association grain
We recover all compulsory statutory
levies on behalf of government
authorities and where instructed.
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