Today, the system Farm Credit provides more than a quarter of all loans used by American farmers and ranchers. It
is a major source of credit real estate purchase and operation of
farmers' cooperatives, as well as funding the development of systems of
economic and telephone service in rural areas. Farm
Credit System simultaneously lends money to buy private homes, the
maintenance of water supply systems, the development of processing and
marketing enterprises, provides a wide range of financial services. Among its clients 75% are individual farmers and 25% - corporations, which often consist of 2-3 farmers. Important part of the Farm Credit System has Leasing Corporation. It
is owned by the banks and provides leasing of machinery, equipment and
facilities to all borrowers systems among farmers, their cooperatives
and enterprises of the social infrastructure of the village. Company is also involved in the delivery and unloading of materials, providing high technology in the processing of products. In
addition, it is seeking funding for the construction of enterprises
processing and storage, equipment and the necessary equipment. Study
of the experience of rural credit cooperatives in different countries
can make some generalizations, and the most positive aspects of this
experience can be claimed where credit cooperatives is just beginning to
recover. The features of this experience can be considered: - Credit cooperatives were established at a time when there was a need for this in small loans; -
The advantage of cooperatives is their ability to reduce the
transaction costs of lenders and borrowers, as well as reducing the
arrears due to the joint liability of the members for the debts of the
cooperative; -
The emergence of credit cooperatives was accompanied by the adoption of
appropriate legislation, contributing to their development and the
phasing out of government support; -
In countries where rural credit cooperatives engaged exclusively in
lending, ignoring other needs of the cooperative service farmers,
cooperatives quickly lost the ability to do business on their own; -
The evolution of credit co-operatives in the world begins with the
creation of the primary rural credit cooperatives, the growth of which
led to the formation of regional lending institutions serving the
financial needs of the forum in which co-operatives; - Creating the first both rural credit cooperatives began to serve the enterprise and other economic sectors.
Credit Union
