FINANCE FOR FARMERS.

Thames Star, Volume LXII, Issue 17353, 1 May 1928, Page 8

FINANCE FOR FARMERS.

RURAL CREDITS. DAIRY COMPANY GUARANTEE. ON BEHALF OF SHAREHOLDERS.h Part of last year’s legislation contemplated that existing co-operative organisations, such as dairy companies,-, might provide a satisfactory channel through which the Rural IntermediateCredit Board’s funds might flow tofanners without the necessity of setting up additional machinery. Underr this part of the Act, the farmer may obtain a • loan direct from the Board,, provided he obtains a suitable guarantor for not less than 20 per cent, of the loan. This will enable such organisation as dairy companies, who have the necessary resources to make their guarantee acceptable to the Rural Intermediate Credits Board, to assist their members to obtain loans from the Department without the necessity of securing 19 other farmers to join with them and of undertaking aiUT liability such as shareholding in an association. The New Zealand Co-operative - Dairy Company has completed arrangements with the Rural Intermediate Credits Board under which the • members of the company may immediately have made available to them the benefits of the Act. The ocmpany will act as guarantor to * thsoe of its members whose applications for loans - are approved by the company and by the Board. The procedure, so far as the farmer is concerned, involves his doing very little - else than the members of that company have hitherto been accustomed - to do when Obtaining loans from the - company’s present financial organisa- - tion. The farmer simply has to make his • application on the form prescribed by" the Rural Intermediate Credits Board and forward it to the company. The • matter will then be dealt with by the company and the Board and the - farmer will be advised of the result of his application in due course.