National reduces wheat advance rate by 25 basis points - 19 December 2001

The National has announced it is passing on a 25 basis point reduction to all National Wheat Advance interest rates effective , Monday 17 December 2001.

General Manager Agribusiness Financial Services Mike Carroll said: "Even though this reduction in the headline rate will reduce a grower's marginal interest costs, greater interest savings can be made using the flexibility of the National's Wheat Advance to control the timing of drawdown of funds until they are actually required.

"Growers who have taken a loan out at harvest and are not fully utilising the funds straight away may find themselves financially disadvantaged. Choosing the right payment option to suit individual cashflow requirements is a very important part of a grower's marketing program.

"If growers are uncertain of what the most appropriate marketing option is, we encourage them to seek independent advice. If they are not able to do this prior to delivery of their grain, they may consider the warehousing option."

Interest rates quoted as at 19 December 2001 and are subject to change.