And, in a bid to flush out tonnage from growers who are loathe to commit due to concerns about production risk, the marketer has also guaranteed a maximum washout fee of $25/t.

Farmers were burnt by the volatility of the 2007 season. Many faced washout costs in the hundreds of dollars a tonne.

This lesson has weighed heavily on any forward marketing decisions since.

The early commitment premium is becoming a common tool among marketers to attract tonnage into pools in the deregulated wheat market.

Pooling represents a good way for companies to accumulate grain without carrying excessive capital risk, a strong incentive given the current financial climate and the cost of credit.

While farmers seek to access cash prices for the most part, pools still play an important role in terms of evening out payments for tax purposes.

The new AWB premium deal will be available as of Monday.

While many growers, even with the maximum washout fee, will remain wary due to production risk, certain parts of NSW may well already have base yields already in stone, following a good start.

So growers there may be tempted to participate in the offer.

AWB Australian commodity management spokesman Stuart Richardson said AWB’s information was that growers still wanted pool products.

“Our research amongst the grower community has told us that a strong majority of growers see pools as an important part of their wheat marketing program,” he said.

He said the decision to offer an early commitment bonus reflected the value of early commitment to AWB’s marketing.

“Growers asked for a greater benefit for those who offer the earliest commitment to the pools, recognising that the whole pool gains an advantage from early tonnage certainty, hence our premium offer.

“Those who commit grain the earliest gain the highest premium, with a second tranche available later, which meets the feedback we’ve received.