CU support helps farmers expand growth, credit

GREENSBORO, N.C. (11/6/06)--A partnership between Self-Help CU and the Rural Advancement Foundation International (RAFI)-USA has led to the development of a guide that helps farmers gain lenders' support for non-traditional enterprises.

The Farmer's Guide to Agricultural Credit grew out of the Farm & Lender Project cosponsored by RAFI-USA and Durham, N.C.-based Self-Help CU with support from the North Carolina Tobacco Trust Fund Commission (North Carolina News Nov. 1).

The guide provides step-by-step information on how to gain financing for non-traditional farm enterprises such as growing organic produce and grinding corn to grits. These creative approaches can help farmers survive financially, yet can be difficult to explain to lenders accustomed to assessing traditional crop programs.

While farmers are often experienced in applying for operating loans, they may be unprepared to provide the additional documentation demanded for a new enterprise. The guide outlines how lenders evaluate loan applications, how to communicate ideas to lenders, and what resources are available.

A committee of farmers, commercial and agricultural lenders, representatives of state government and other experts helped develop the free guide, which is available online.

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