SASKATOON, June 18, 2012 /CNW/ - Farmers of North America (FNA) today
announced the launch of the MarketPower Assurance Program, in
partnership with major players in international trade.
Atradius Credit Insurance, Export Development Canada, and Pangaea Global
Risk Management are combining resources to give Canadian farmers of all
sizes and farmer-owned marketing entities global trading capacity with
dramatically reduced risk.
In light of the changed role of the Canadian Wheat Board, grain farmers
in particular will benefit from the program, but the MarketPower
Assurance is open to all agricultural producers and traders, and
significant opportunities are expected for livestock growers.
By providing insurance on sales, MarketPower Assurance ensures the
grower will get paid, and that receivable is "bankable."
Farmers can take their insurance policy to any financial institution and
borrow against it as a capital asset. Because it is a capital loan, the
proceeds are not taxable, but any interest payments are tax deductible.
The insurance premium is also tax deductible.
"What we get out of this equation is a risk management and marketing
tool that maximizes profit at a dramatically reduced cost," said FNA
spokesperson Terry Drabiuk.
Furthermore, MarketPower Assurance is creating a credit-worthy buyer
pool that will provide Canadian farmers with more buyers for them to
negotiate with when dealing in a market - supporting stronger farm
product prices. The program empowers farmers to earn significantly
higher margins, safely, as well as helping with their working capital
through increased bank margining.
The program is also a key element of FNA's strategy for producers to
aggregate their crops to capture a larger share of the value of those
crops from the grain marketing, handling, and transportation system.
"This is a program that will work well for small to mid-sized farms as
well as the really big guys. Using it, farmers will become their own
global traders, keeping more of the margins currently taken by
middlemen," said Drabiuk.
Kevin Sullivan, speaking for Pangaea Global Risk Management, said
"MarketPower Assurance will provide Canadian producers with the ability
to sell their products on open account terms all over the world -
providing a huge competitive advantage against others selling on
letters of credit."
Farmers can join the program by visiting mpa.fna.ca or by calling FNA directly at 1-877-362-3276.
SOURCE Farmers of North America
For further information:
Terry Drabiuk, Vice President, FNA | 1-877-362-3276
Kevin Sullivan, President, Pangaea Global Risk Management | 1-888-986-4748
Web Site: mpa.fna.ca