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Dear Farmer
2011 Grain Co-Production Offer Details
AACL Pty Ltd (AACL) continues to generate payment offers for wheat, barley and canola Grain Co-Production contracts for the 2011 season. Capital for 2011 is guaranteed via the 3 year funding and marketing agreement with Glencore Grain Pty Ltd (Glencore).
The 2011 season GCP contract includes two payment types:
- Seeding Payment: non-recourse (subject to the crop being planted) and is paid in two installments. The first is paid in May and the second in June, after AACL receives the contracted farmer's signed Seeding Declaration Form.
- Performance Payment: paid subject to the delivered value of the contracted crop and includes a Harvest Performance Payment and an Outperformance Payment. The Performance Payment is paid once the contracted crop is harvested and AACL receives the contracted farmer's signed Harvest Declaration Form.
The Harvest Performance Payment is payable in full where the delivered value exceeds the Target Value as stated in the GCP contract and is not payable if the delivered value of the crop is less than the Seeding Payment. However, a farmer may still be eligible for a pro-rata portion of the Harvest Performance Payment where the delivered value is between the Seeding Payment and the Target Value.
An Outperformance Payment is payable when the delivered value exceeds the Target Value. The Target Value is the value of grain that must be achieved from the contracted area before the farmer is eligible to receive Performance Payments. These payments are determined separately for each individual farmer following an assessment of production and financial risk.
For further details, please contact your Regional Area Manager.
Grain Marketing - 2010 Season Project Update
MARKET UPDATE
Global uncertainty, intensified by the current situation in Japan, has resulted in increasing uncertainty in the grains market. This is one of the main drivers to the sell off occurring in the international futures market in the past week or so. In addition, the USDA report released this week has seen the market rally to cover some of the recent falls.
AACL NOMINATED GCP GRAIN PRICE ESTIMATES - FOB
Please see the below updated headline numbers for the expected GCP price.
WA SA VIC NSW
Wheat - APW 345 335 335 335
Barley - Feed 270 261 261 261
Canola - Non GM 595 575 555 555
- Click here to view the updated 2010 Estimated Pool Returns.
- Click here to view the FOB and finance costs (unchanged from November 2010).
- Click here to view the 2010 Receival Sites and Freight Rates. AACL contracted grain can only be delivered to these approved sites.
As previously advised, AACL is aiming to make distributions on 25 April, 25 July and 25 October. On these distribution dates, AACL may be able to increase the amount distributed to farmers from the 70% made at harvest. It is also AACL’s intention to finalise the pool by 25 July, however this will be dependent on market conditions. Full details will be made available closer to the first distribution in April.
Should you have any other questions in regards to this email, please contact your Regional Area Manager or Grower Services on 13 000 GRAIN (47246).
Yours sincerely 
Simon Foley
GENERAL MANAGER - PRODUCT SERVICES
AACL Pty Ltd
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