Public joint-stock company State Food-Grain Corporation since early 2018 has been switching to the agrarian receipts system with most of agricultural producers participating in the company’s forward purchase program. According to a press release of the corporation, the step should accelerate the procedure for approving the advance payments for producers for future harvest grain and ensure larger reliability of the corporation.
The condition of the agrarian receipt is the obligatory delivery of the approved agricultural products to the corporation by the commodity producer. The manufacturer receives the advance payment in the spring, and delivers the products in the autumn.
“In this case, the agrarian receipt significantly reduces the risk of the parties failing to fulfill their obligations under the grain supply agreement for the future harvest,” the corporation said.
As reported, in February 2018, State Food-Grain Corporation announced the start of the spring forward program, under which the corporation would buy winter and spring crops of the 2018 harvest. Under the program it is planned to finance farmers for the amount of almost UAH 1.5 billion in advance. Wheat, barley, corn and oats could be bought under the program.