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National Australia Bank's National Wheat Advance has been expanded to offer price protection for Durum wheats for the first time this year. Noodle and Feed wheat will also be included again. The National's General Manager Agribusiness Mike Carroll said the bank was constantly finding ways to refine its product and improve flexibility and choice for farmers. "The inclusion of the additional grades will particularly assist growers in the larger wheat exporting states who deliver significant tonnages of Durum and Noodle wheat varieties into the AWB Pool Distribution option each season," Mr Carroll said. "An advantage of the National's product over some others is that the underwriting fee will protect a grower's price whether or not they draw down on their loan." For most grades, growers can nominate both an underwriting level and borrowing limit of 50%, 60%, 70% or 80% of the value of their wheat based on the nominated Estimated Pool Return (less an estimate of costs for storage, handling port charges, freight, levies and the National's underwriting fee and financing). For Durum and Feed wheat grades, however, underwriting will only extend 70% of the nominated Estimated Pool Return. This is due to the market risks associated with a larger crop and the sale of these particular grades on the global market. "We are waiting anxiously for the Australian Wheat Board to announce its nominated Estimated Pool Return so that we can finalise our underwriting price. However, we can say that we will continue to be competitive. "In just three years of offering harvest loans, the National has led significant competitive improvements in the market," Mr Carroll said. "Our flexible borrowing limits and drawdown options were groundbreaking. An advantage of the National product is that growers are not limited to one drawing per month after harvest. The National provides a range of methods to draw down your advance, including contacting your local Agribusiness Manager, or alternatively funds can be accessed 24 hours a day, 7 days a week via internet banking. " "In response to a high level of interest, we have continued to make the National Wheat Advance available to sharefarmers, so even more Australian wheat growers have access to this facility to help manage their cash flow."
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