Early Final Payment Program (EFP)

The Early Final Payment Program was established for those who defer their new crop proceeds into the next calendar year.  This is another program where FRC uses its borrowing power and access to relatively low commercial rates to aid in the cash flow of members.

2008 Crop Program

• FRC members may receive up to $300 per acre in conjunction with a signed acreage survey
• Acreage Survey will have an Early Season Advance (ESA) / Early Final Payment (EFP) section
• Members select ONE of three options
• Early Season Advance (ESA)
• Early Final Payment (EFP)
• No Advances
• Acreage Survey will be mailed out in May 2008
• Members will estimate the net value of the remaining proceeds for the 2007 crop:
• Net value includes any special variety premium balances, Rice Research Assessment, California Rice Commission, Retain, Dividend and any other deferred charges.

• EXAMPLE:
• February 2008, FRC states a projection for the 2007 crop final return at “above $7.00 over loan”
• In May 2008, FRC is advanced @ $5.00 over loan
• Using $7.00 over loan, this leaves approximately $2.00 gross remaining to be paid for the 2007 crop
• From the $2.00, each member must add or subtract out special variety premiums, CRC & RRA dues, retains, dividend and deferred charges
• Assume a member has 40,000 cwt of Calrose and 10,000 of M-401, CRC & RRA, Dividend, Retain and $.10/cwt deferred freight on all 50,000cwt.  The member has planted 600 acres in the 2008 crop.

• In October of 2008, the final payment will be reconciled with the Early Final Payment. 
• If the final payment is MORE than the individual member’s EFP, then the member will receive a final check for the difference
• If the final payment is LESS than the individual member’s EFP, then the difference will be your first 2008 crop advance.  It will be applied to your account November 2008.  THIS WILL BE CONSIDERED INCOME IN THE 2008 CALENDAR YEAR.
• The $7.00 over loan number was for example purposes only.  Each member must estimate the actual net final return for their individual account.  FRC recommends using a very conservative estimate.
• The EFP per acre will be basis the percentage share of the crop
• Landlords must request the advance on their own acreage
• The early payment will be interest free to the individual grower
• Any advances may not be returned at a later date
• Member will not receive any progress payments after selecting this option (the progress payments are included in the Early Final Payment)
• FRC RECOMMENDS YOU CONSULT WITH YOUR TAX ADVISOR PRIOR TO PARTICPATING IN THIS PROGRAM
• 2009 Early Final Payment Program will be released in February 2009.

For further information, please contact your FRC Field Representative or click the “Contact Us” link.