QSL has launched its new Pre-Crush Advance Payment Scheme, designed to give growers a payment for their 2019-Season QSL GEI Sugar in March 2019 – before the crush begins.
Participating growers receive $50/tonne of sugar IPS on 29 March for up to half of their 2019-Season QSL GEI Sugar. This Pre-Crush Advance payment amount is then deducted from their Standard QSL Advances payment/s once they start their harvest.
QSL passes on the charges for this product at cost, enabling participating growers to enjoy the same
These finance costs are estimated at $0.60/tonne IPS sugar (equivalent to an interest rate of around 3.5% over the same period) and are incorporated into the grower’s final pool prices via a specific allocation from the QSL Shared Pool.
THE PRE-CRUSH ADVANCE PAYMENT – HOW IT WORKS
- Growers apply to participate in the Pre-Crush Advance Payment scheme and nominate up to 50% of their 2019-Season QSL GEI Sugar production estimate.
- Participating growers are paid $50/tonne of sugar IPS for their nominated tonnage on 29 March 2019.
- The Pre-Crush Advance amount paid is then deducted from the grower’s next QSL Standard Advances payment/s once they begin the harvest.
- The grower’s QSL Standard Advances payments continue as normal after repayment of the PreCrush Advance amount. Note: Depending on your circumstances, the Pre-Crush Advance repayment required may be equal to or more than your first QSL Standard Advance once harvesting commences.
- A grower has a GEI Sugar estimate of 400 tonnes of sugar IPS nominated to QSL.
- They are eligible to receive a Pre-Crush Advance on 50% of this estimate = 200 tonnes of sugar IPS
- They are paid $10,000 on 29 March (200t IPS x $50/t IPS)
- Once they start their harvest and begin delivering sugar, their regular QSL Advance payments start when the overall amount due for the season exceeds the $10,000 they have already been paid.
- The finance costs of approximately $0.60/tonne IPS are incorporated into the QSL Shared Pool for the 200t IPS that the grower’s Pre-Crush Advance payment was calculated on.
HOW TO REGISTER
Growers considering this product should read the full QSL Pre-Crush Payment Advance Scheme (2019 Season) Terms, available from QSL offices and online at www.qsl.com.au. To participate, please log onto your QSL Direct account and click on the ‘Season Preferences’ tab under the 2019 Season. You can then nominate up to 50% of your 2019 GEI tonnage in the ‘Pre-Crush Advance’ field. Nominations close 15 March 2019.