DEPARTMENT OF AGRICULTURE


maril upon how much he needs to properly carry on his
business and upon his ability to repay the loan out of the
farm income. Farmers usually give a first lien on crops
and livestock as security for their loans.

 Costs Reasonable. The rate of interest charged on
 loans is determined by the prevailing cost of money.
 Interest is charged only on actual amount borrowed and
 for the actual time the money is in use. A nominal fee
 is charged to cover the cost of making and servicing the
 loan.

 Loan Repaid from Sale of Farm Products. Loans are
 repaid as the crops, livestock, or livestock products fi-
 nanced are sold Dairymen and commercial poultrymen
 usually pay their loans in installments out of their regu-
 lar checks for milk, cream, or eggs. Loans for crop pro-
 duction usually come due during the marketing season.
 Livestock loans, and loans which include substantial
 amounts for the purchase of machinery, the repayment
 of debts, or for other capital purposes, usually come due
 at the end of 12 months, and the unpaid balance at that
 time can be renewed if satisfactory progress has been
 made. In short, repayments are planned to fit the indi-
 vidual's operations.

 Budgeted Loans. The "budgeted loan" feature saves
both time and money. One loan is made to carry through
the entire production period. It permits the operator to
obtain money when he needs it-pay it back when he
markets his crops or livestock -and pay interest on each
dollar only for the exact number of days he uses it.

 All Who Borrow Are Members. Each person who
borrows owns voting stock in the association equal to
approximately $5 for each $100 of his loan. Collectively,
the members own all of the voting stock of the associa-
tion. but each member, regardless of the amount of stock
he owns, has only one vote.