FARMING FINANCES.

Stratford Evening Post, Volume IV, Issue 224, 2 September 1936, Page 4

FARMING FINANCES.

RURAL CREDTfS ASSOCIATION.

Fewer Applications For Loans This Year.

IMPROVEMENT REFLECTED. “The numblJASf applications for new loans received during the year was a little last year. There must be a great number of farmers who could with advantage avail themselves of the Rural Intermediate Credit Finance , whereby advances on livestock and implements can be obtained at the low rate of interest of 5 per cent, per annum on the amount owing from time to time,” stated the chairman of directors,” Mr. A. David, in his report to the annual meeting of the Stratford Co-operative Rural Intermediate Credit Association yesterday.

“During the year the rigidity of the regulations has been considerably relaxed in the direction of easing the repayments in the first two years where necessary, granting concessions on repayments of older loans, and in making re-advances and further advances. New Advances. “The total amount of new advances, further advances and readjustments was £3917/3/8. The amount owing at the beginning of the year was £9014/18/11, and allowing for repayments and refund over-payments, the amount owing at June 30 was £6716 17/6. The total number of loans current is 37, and the number of shareholders 61,

“There have been three applications against the association for relief under the Final Adjustment Act, and one account is being run under a pooling scheme. Service To Farmers. “The fact that the association has made approximately £33,123 available to the farmers of this district since 1929 proves that the original shareholders have rendered valuable service to the farming community in starting the association.”

The main point of interest, said Mr. J. C. Robins, district supervisor, in seconding the adoption, was that the association had been the means of providing a considerable sum of money to assist farmers during the period of depression, and the fact that it had been able, during the period of extreme hardship, to render that assistance at such a low rate Of interesTwas very satisfactory. Price Improvement Reflected. The improvement In the prices being paid for butter-fat during the last 12 months, he continued, was evidenced by the reduction of £2300 in loans. When it was considered that about 25 per cent, of the whole of the advances had been paid off, it was apparent that farmers were now in a position not only to meet their interest charges but they had improved their finances to the point where they were able to meet all obligations. .

Easy Finance.

Now that the prices for dairy stock and sheep had become more buoyant, there was no doubt that more farm* ers still w-ould take advantage of the cheap rate of interest of the easy system of finance that is provided for them through the association. The important factor that was sometimes overlooked in arranging finauce through the association w T as that not only did they receive advances at the low rate of 5 per cent., but there was no compound interest. Money w-as thus made available to the farmer for the purchase of stock, manuring and developing his property at a very lowrate, giving him freedom to go to the open market for the purchase of requisites which ensured his getting the cheapest and best results.

Mr. W. J. Thurston, retiring director, and Mr. ~G. A. Carter, auditor, were re-elected unopposed.