SASKATOON, Oct 7, 2015 – The FNA Strategic Agriculture Institute (FNA-STAG) is announcing today the completion of it’s testing of the MarketPower Assurance (MPA) program, and is pleased to make it available to the entire marketplace. Key features include:
- Protection against slow pay or no pay
- Insure accounts payable on a buyer and invoice specific basis
- Provide flexible payment terms, up to 90 days.
- Freedom to look for higher risk premium markets
- Insure only until you’ve built confidence in the buyer.
“MPA is available for any products farmers sell and for processed food products as well,” says FNA VP Bob Friesen. “this insurance product will give farmers and food processors the confidence that they will get paid regardless of who they sell to”
Every farmer has a story to tell about the one time they did not get paid. When farmers sell, without cash on delivery, they are typically unsecured creditors, and whether the buyer simply refuses to pay, is slow to pay or goes into receivership, the sellers are “out of luck”
With MPA that no longer has to happen. Whether you’re a farmer or a food processor, you can now sell with confidence, secure in the fact that if there is a default of payment, at least 90% of the value of the invoice can be recovered through insurance coverage.
“Keeping farmers in mind, this program was tailored with a lot of flexibility,” says Friesen, “you can pick and choose for which buyers you want coverage, as well, you can insure each delivery specifically and as you build confidence in the buyer, stop buying the insurance anytime,” and Friesen adds, “its very affordable”
An additional bonus is using accounts receivables as collateral. Banks typically will not lend money against receivables. However, MPA allows sellers to leverage their accounts receivables for operating credit with their insurance certificate because they are assured of receiving at least 90% of the value of their invoice.
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Farmers of North America Strategic Agriculture Institute (FNA-STAG) is a not-for-profit organization with the single mission of “Maximizing Farm Profitability.”
For more information contact :
Bob Friesen, CEO: (613) 230-2222 / (613) 852-9711