Defer Pay on Sale of Grain
Nov 22, 2024
By Rachel Livermore, Grain Accounting Supervisor
Did you know that GCC allows you to defer payment and earn interest on the sale of your grain to the date you’re ready to take the income? This option allows you to sell your grain at any time even if you’re not ready to receive payment. It stops storage fees and can help you manage your taxable income for the year. You can either choose to defer payment to the first business day of next year, or you can pick your own due date. We will issue you a contract called “Contract of Sale of Grain Payment Later” to be signed. It will list your payable amount and interest plus any storage, discounts, tax, etc. Our current interest rate is 1%.
When your payment date approaches, a member of our Grain Team will reach out to you. We will ask you how you prefer to receive payment, whether check or ACH, and if you want it mailed or want to pick it up at your nearest GCC office. If you decide you aren’t ready for payment when due, we can roll your due date another year. You’ll earn additional interest for the new period. We’ll send you a contract with the new payable amount and due date which must be signed and returned to us. Keep in mind that we only roll contracts for a minimum of one year and payment can only be issued upon the contract due date, never earlier.
Please note that if you defer payment on contract, we must obtain a W-9 from you if we don’t already have one on file. This is required as we must send you a 1099-INT for interest income for the year. Income is reported for the year payment is issued.
We appreciate your business and are happy to provide you with defer pay options to help meet your needs!
Did you know that GCC allows you to defer payment and earn interest on the sale of your grain to the date you’re ready to take the income? This option allows you to sell your grain at any time even if you’re not ready to receive payment. It stops storage fees and can help you manage your taxable income for the year. You can either choose to defer payment to the first business day of next year, or you can pick your own due date. We will issue you a contract called “Contract of Sale of Grain Payment Later” to be signed. It will list your payable amount and interest plus any storage, discounts, tax, etc. Our current interest rate is 1%.
When your payment date approaches, a member of our Grain Team will reach out to you. We will ask you how you prefer to receive payment, whether check or ACH, and if you want it mailed or want to pick it up at your nearest GCC office. If you decide you aren’t ready for payment when due, we can roll your due date another year. You’ll earn additional interest for the new period. We’ll send you a contract with the new payable amount and due date which must be signed and returned to us. Keep in mind that we only roll contracts for a minimum of one year and payment can only be issued upon the contract due date, never earlier.
Please note that if you defer payment on contract, we must obtain a W-9 from you if we don’t already have one on file. This is required as we must send you a 1099-INT for interest income for the year. Income is reported for the year payment is issued.
We appreciate your business and are happy to provide you with defer pay options to help meet your needs!