With many farm businesses struggling from tight cash-flows following the poorest harvest for a generation Openfield, Britain’s leading farmer-owned grain co-operative, is extending the credit terms of a grain off-set service to help members manage cash-flow pressures.

Advanced Cash-Flow, or ‘Ad-Flow’ as it is commonly known, enables growers to take an advance payment of up to 65% of the value of their grain ensuring they can book purchases of vital inputs, such as fertiliser, while avoiding flat selling.

To qualify growers simply commit to market their grain through Openfield. For those who purchase fertiliser through the co-operative the cost is merely booked against the value of their grain with the balance settled in cash once sales have been completed.

Openfield director of grain products and origination, Richard Jenner said the decision to widen Ad-Flow’s availability was in response to issues highlighted in customer feedback meetings.

“We are acutely aware of the difficulties many growers face and, where possible, we are providing what assistance we can. There is particular concern among growers as to how they might manage the cost of major inputs while avoiding pressure selling,” said Richard Jenner.

“As a farmer-owned business we felt we could best alleviate the pressure on growers by expanding Ad-Flow,” he added.

Ad-Flow gives a cash advance of up to 50% against grain held in a farmer’s store and up to 65% if held in a central store. Its introduction is seen as particularly pertinent to the current season.

A large number of growers rely on financed credit or overdrafts to make purchases, but there is concern that many businesses lack the financial headroom within their overdrafts to purchase the necessary inputs. The recent announcement by ING Lease UK, one of the largest providers of credit finance to UK agriculture, to close its books to new business from the end of the month has further compounded the challenges facing growers.

“There is a clear need to respond in a helpful manner. Several fertiliser manufacturers have issued statements suggesting that unless orders are confirmed within the next few weeks, supplies might not make it on to farm when they are needed.  We hope that through Ad-Flow our members will be able to make their fertiliser purchases and that they can begin to focus on the season ahead,” said Richard Jenner.