Bulk handler GrainCorp has reassured growers that their grain delivered to GrainCorp sites is protected under warehouse agreements from issues with weather damage.
A freak storm in the western Riverina last week delivered 160mm at the GrainCorp Deniliquin site, causing flooding around the bunkers.
Rumours spread around via social media that warehoused grower grain damaged by water was the growers' responsibility, however GrainCorp general manager of operations Nigel Lotz assured farmer customers they were protected by the warehouse agreement.
"We deal with events like this every year, it's part and parcel of being in the industry," he said.
"As part of our business GrainCorp underwrites the quality and quantity of the grain that growers deliver to our sites, if growers have grain there (that is damaged), we will stand by the quality and quantity that they originally delivered and they can continue to trade it as normal."
He said the take home message for growers was they could deliver in the full comfort their grain was secure.
"They will be paid according to that declaration, regardless of whether the grain is damaged."
However, he said in this instance there was not likely to be materially impact to stocks.
"We do not envisage any issues with access to stock owned by growers on site once all flood water has receded."
Mr Lotz said he was pleased with the way the Deniliquin site had held up given the heavy rain.
"The site does have a drainage system around it and it's been improved in recent years, but just was unable to handle the instantaneous volume of rain, however the site team did a great job at preparing as much as possible."
He said the timing of the event was good, in that harvest was only just getting underway in the region and that carryover from last year had been removed, meaning the bunkers were largely empty.
The site team was also able to ensure that critical infrastructure such as stackers and bunker equipment were kept dry and experienced no damage.
On the negative side he said a large amount of water ran over the rail track in some areas and the rail siding will need to be assessed before trains run to the site again, while the site is also being kept shut until the water subsides fully, which is expected to basically coincide with in-paddock delays.
The focus now turns to unharvested crop within the region, with Mr Lotz expecting some downgrading.
"As per other years, falling number machines are inevitable in rain-affected areas."
"We appreciate it's frustrating for some, however it's the only way to maximise the value of the growers' grain if it's been impacted by weather."