CBH has defended criticism over the deal struck between its grain marketing arm Grain Pool and AACL to fund new growers participating in AACL's Grain Co-Production (GPC) scheme.
The deal was announced last week and helped AACL complete its 2009 capital raising program, by securing more than $80 million for this season's plantings.
Under the arrangement, Grain Pool will make a $30m pre-payment on the grain it has pre-purchased from AACL out of an expected total crop valued at approximately $150m.
The money was needed after investors went cold on AACL following the collapse of Managed Investment Scheme operators Timbercorp Limited and Great Southern Limited in late May, and the company also suffered a delay to a product ruling from the Australian Taxation Office.
AACL has stated the grain purchase agreement with Grain Pool will not impact on its ability to sell its crop to multiple buyers.
CBH said the deal was signed after it went through a thorough due diligence process, which saw management make a unanimous recommendation to the board, at a special meeting dedicated to making a decision on the proposal.
However, the deal became the subject of ongoing debate last week, with industry reaction varied.
In a radio interview last week, WAFarmers grains council president Derek Clauson questioned the merits of CBH risking the money in the current climate.
Speaking to Farm Weekly on Monday, Mr Clauson said he had not changed his view on the deal, and called for finer details to be released.
"I have great difficulty understanding why CBH would expose its grower shareholders to $30m of production risk in the eastern states," he said.
Mr Clauson said he had received a lot of feedback on the issue, including calls from graingrowers, farm consultants and members of rival farm lobby group, the Pastoralists and Graziers Association (PGA).
"There is a lot of resentment out there amongst growers who are dismayed that CBH is using $30m of its money to fund eastern states cropping.
"The money is being used to pre-purchase grain and will be dispersed on a non-recall basis loan.
"I have never said CBH has invested in AACL.
"But, until CBH come out and tell us the details of the deal, we are left to speculate on the actual terms and conditions of it."
AACL managing director Andrew McBain said his company contacted WA farm lobby groups last week to communicate the Grain Pool deal, but declined to make further comment on the issue.
"We have sought to make ourselves available to brief WAFarmers and various farm consultants in relation to the Grain Co-Production model and its features," he said.
Grain Pool senior trading and marketing manager Josh Roberts said the estimated grain volume in the deal was dependent on how growing conditions unfolded.
He declined to comment on specific volumes, but said the geographical spread between WA and eastern states growers made it a more secure deal.
Mr Robert said Mr Clauson had made ill-informed comments on the AACL deal, because he did not have all of the facts.
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