The Kennewick courier-reporter. [volume] (Kennewick, Wash.) 1914-1938, 1933-12-14
r ACC. HELPS
FINANCE FIVE
MILLION BOXES
More than 1000 Growers Get
Help from Federal Agency;
Manager w. E. Meyer tells
Hort Men of Setup

Warner E. Meyer, manager OF
.be Federal intermediate Credit
Rank of Spokane, addressed the
st,+e Horticultural Association
noot;np last Monday during it's
tbree-day session at Yakima
washington, December 4-6. Mr..
Never used as his subject "A
Factor in Financing the Produc-
t;on of Apples and Pears" an ex-
eerpt from which follows.
apacific Northwest fruit grow
ORC experienced practically no diff
f;cnlty in financing production un-
ii after the 192O-22 deflation per-
lid when commercial bank credit
was curtailed. The passage of the
Agricultural Credits Act of 1929
authorized the establishment o t
the Federal intermediate Credit
Rank of Spokane, with an author
lied capital of $5,OOO,OO0, subscribe
cd by the Treasury of the United
States.
aThe Spokane bank first made
loans for fruit production in 1925
when it financed one organization
serving 374 growers who produced
1,037,597 boxes of apples and win
ter pears. During the current
year it has financed six organaiza-
lions serving 2,036 growers whose
estimated production is approx
mateIy 100000 boxes. In it's nine
years. experience in financing the
fruit production the Bank has adj
vanced s1O,576,1 to produce TO-
1888 crops aggregating approx
mately 27,512,OO0 boxes, the aver
age loan per box over this period
being 3Sc.
'The Federal intermediate Cred
it Bank was the only governmental
agency to make fruit production
loans in this district, prior to the
year 1892, when the Reconstruc-
ton Finance Corporation financed
six new credit corporations which
advanced substantial sums in the
Northwest fruit districts. The de-
partment of agriculture also made
limited emergency loans that year
for fruit production.
AT the close of 1892 a new gov
ernmental agency, The Regional
Agricultural Credit Corporation,
was created and it has assisted
materially this year by making di-
rect loans to growers. The three
agencies, including the Reconstruc-
ton Finance Corporation, the Re-
gional Agricultural Credit Corpor-
alton, and the Federal Intermed-
late Credit Bank, have advanced
approximately S6,715,4 during
1888 assisting 1854 growers pro-
duce total of approximately A.
$4,000 boxes of extra fancy boxes
OF apples and winter pears.
Loans accepted by the Bank
Tor financing production cannot be
made direct to growers but must
originate with a Production Credit
association or other corporation
qualified to establish credit rela-
IONS with the Bank. There are
three distinct types of organiza-
ton:
" Self-contained growers CO.
operative associations, to which
Inc member passes full title to the
product.
W Cooperative marketing assoc
elatons which, by agreement, re-
.aln a lien against the pooled pro-
ouct OF members for current ex-
penses Of the Association and any
necessary harvesting and market
ing expenses which, may be adj
vanced.
lSl Agricultural Credit Cor
poratlons, loaning to growers who
market their crops independently
VI any pooling or cooperative
agreement.
regardless of the character of
o os through which loans
orlglnate, the Banks insists upon
capable management and compe-
seat horticultural and inspection
s service. Only successful growers
showing satisfactory financial re-
ssep01lslbility, having good orchards
- desirable commercial varieties
should o. be financed.
h.. Loans for fruit production are
s sased upon estimated production
da a graduated advances are made
curing - !. the growing season adjust
c., 70 certified periodic estimates.
r ,asl estimates are rechecked bv
:. sseoenlzed horticulturists employ.
u oy the Bank"