Grain traders must institute shorter payment terms across the industry, according to Victoria’s peak farming body.
The VFF Grains Group said the transition was necessary for the future of the industry.
Grains Group president Ashley Fraser hopes changes will occur in the near future.
‘‘Grain traders need to transition to two-day payment terms across all contracts in the near future and, within two years, we want to see same-day payments standard practice across the industry,’’ Mr Fraser said.
‘‘To help drive this change, I encourage all growers to ask for two-day payment terms when discussing potential grain sales.
‘‘The current system allows for 30 to 60 day terms of payment, which places an unfair portion of the credit risk on growers.’’
Mr Fraser said new information sharing platforms ensured accurate grain delivery data could be processed in real time.
‘‘We know the devastating impact the collapse of grain traders has on growers.
‘‘To start rebuilding grower confidence, the industry needs shorter payment terms on all types of contracts.
‘‘There will be farmers who have a good relationship with smaller buyers who may wish to commercially negotiate longer terms.
‘‘But these need to be well informed decisions made on a case-by-case basis, not the industry standard.’’