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Last week's launch by the National Australia Bank of a competitive alternative to the AWB's Harvest Payment - Wheat Advance - has delivered Australian wheat growers approximately A$13 million in interest and underwriting savings. The National's Wheat Advance was launched in Western Australia last week (and New South Wales and Victoria this week) offering wheat growers an interest rate saving of between 0.25% and 0.30% per annum and an underwriting fee of A$1.60 per metric tonne (versus AWB's existing underwriting fee of A$1.95 per metric tonne). Late yesterday, the AWB moved to match the National's underwriting fee at A$1.60 and announced new "loyalty discounts" on finance. "Clearly the AWB has reacted to the National's more competitive offering," said Mr Mike Carroll, the National's General Manager, Agribusiness.
"The AWB's response highlights that the A$1.95 per metric tonne underwriting fee has historically been very expensive protection for growers". "The National is pleased that its participation in this market has delivered Australian wheat growers approximately A$13 million in interest and underwriting savings. These dollars will go straight onto the client's bottom line," added Mr Carroll. The National's Wheat Advance has received a high level of interest from growers since its launch. The National is now reviewing its pricing to see whether there is scope to offer further savings to growers. The National's Wheat Advance is a further endorsement of the National's commitment to Australian Agriculture. The National remains the largest lender to Australian agriculture and has the largest agribusiness financial services network in Australia with a team of 320 people dedicated to serving the agricultural sector.
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