COOPERATIVE AGRICULTURE IN FLORIDA 93

management, and business policies are such as to insure
the reasonable safety of the loan.
 In determining whether a cooperative meets the
bank's credit standards, the economic need for the or-
ganization is investigated. Factors such as the type and
stability of production m the area and prevailing market
conditions are analyzed.
 Investigation is also made to determine that an as-
sociation has the active support of its members and that
they realize the economic need for the cooperative.
 The capital of a cooperative association must be ade-
quate if it is to qualify for a loan from a bank for co
operatives. Such a cooperative must have a capital struc-
ture consistent with cooperative principles, designed to
provide ultimately the assets necessary to conduct its
normal operations. In all cases it is expected that pro-
vision will be made for the farmer-members to capitalize
the association.
 Finally, the banks for cooperatives require assurance
that the cooperative association which applies for a loan
is operated efficiently. It must be shown that the organi-
zation has competent management, an adequate account-
ing system, an efficient plant, and a well-rounded pro-
gram for development.
 Service-Incident to the granting of loans on a sound
business basis, the banks for cooperatives have the op-
portunity of making their services effective in many
ways which are reflected m the sounder operations of
cooperative associations. Improved financial and organi-
zational structures, sounder credit policies, better rec-
ords, more complete audits, and the development of
increased director and member interests are a few of the
results of the activities of the banks for cooperatives.