In
the resource bank dominates a large proportion of private
contributions, though in recent years, an increasing proportion of
private and commercial deposits. Local
banks have to provide most of its resources Central Cooperative Bank,
in part to ensure the reliability of placement of its assets, in part to
ensure the liquidity of the system as a whole. The central bank is also working on the capital market, which allows it to provide credit facilities by local banks. A
successful approach to the financing of the agri-food sector and strong
financial position of the bank are in close interdependence with the
following requirements when placing the credit: 1. The basic requirement for a loan must be individuals of integrity and technical ability of the farmer; 2. Assessment
of the potential profitability of the operation, which allows to
determine whether the expected revenue to cover interest on the loan, to
ensure its return to the farmer and leave balance; 3. Exceeding commitments to ensure the loan should be at least 30-40%. Farm
Credit System has long been one of the most important conditions of the
financial mechanism in the agrarian economy of the USA. Economic agents have to buy resources for the process of production to make a profit. The
agricultural sector of the U.S. production is carried out family farms,
partnerships, and corporations, and provide them with the means of
production are numerous firms and companies. For their interaction needs a mechanism to ensure the movement of flows of funds. In the U.S., for this purpose successfully functioning market money capital and loans. In
the banking and financial system of the country are several major types
of intermediaries that provide loans to farmers and other financial
services: - Commercial banks, accumulating funds from the public in the form of deposits; - Agricultural credit institutions on a cooperative basis, mobilizes free money market funds; - Special government programs at the federal, regional and district levels, using funds from the state budget; - Credit unions in collective responsibility of the members; - Agribusiness, providing trade credit; - Insurance companies, pension funds and other economic institutions that perform trust functions; - Individual lenders, including such as family members, sellers of land, etc. (28, p. 113). The most important element of the financial and credit activities of the United States is the Federal Farm Credit System. It was established in 1916. to provide farmers with access credit. With the development of Farm Credit System, the Foundation is currently represented by 10 banks and 250 local associations. Overall supervision by an independent government body - the Association of Farm Credit. At
the time of the Farm Credit Union, the U.S. government provided the
initial capital needed to operate the system in the first phase. At the same time measures were provided for repayment of debt farmers - Farm Credit Union members. Recent years, the system is entirely by the farmers themselves.
Credit Union
