White Bluffs spokesman. [volume] (White Bluffs, Wash.) 1907-1938, 1934-09-20
Stored Fruit Loans
Offered By YVPCA

A plan under which eligible growers
in this district may receive commodity
loans on packed apples and pears In
cold storage through the Yakima VAL
lev Production Credit Association was
announced this week.
Applications will be received from
any bona fide growers whether person,
partnership or corporation. Present
borrowers through the YVPCA and
non-borrowers are alike eligible for the
commodity loans.
On Winesaps, 1885 and larger, the
organization will loan 70 cents for
extra fancies and go cents for fancies
while for sizes ITS to ZIG, they will
loan IS cents and so cents for the
extra fancies and fancies. Loans on
other varieties are approximately the
same.
The figures are net to the grower
and funds with which to purchase the
five per cent stock, necessary for each
loan made by the YVPCA, will be
loaned in addition to the above am
cunt. Cold storage charges are to be
deducted from proceeds of sale before
remittances are made to the lending
group.
Growers now borrowing from the
Credit Association may convert their
production loan into commodity loan
provided the market values OF their
stock in cold storage is sufficient to pay
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Stock already purchased in a pro-
duction loan may be used for borrow
ing under the commodity schedule,
provided the ratio of SIS stock to each
800 of borrowing is maintained. Stock
purchased for a commodity loan may
be used at book value for 1885 produc-
| ton loans.
In making the commodity loans use
will be made of the local association
cash loan fund whereby a check can be
given each borrower upon presenta-
ton of his documents provided they
are in perfect order. The loan will be-
handled entirely locally and the grower
can obtain his money In the shortest
possible time.
L
AS the maturity date of commodity
loans will be May i, 1885, it will be
an advantage to the borrower under q
production loan who wishes to hold
his fruit for late sales to transfer ms
production loan to a commodity basis
Also in cases where growers have
guarantors on their production loans
the commodity loan will allow them
to convert to let the crop carry the
loan, and in cases where there is
crop sharing agreement the produc'
ton loan can be paid off and dlVl'
sion of the crop made.
To assist in proper marketing ane
further to avoid so-called distress
selling" it is the intention Of the Pro
duction Credit Association to permi
commodity loan borrowers to obtain
portion of proceeds of sales IN exces
of the loan value per box. In othe
words, if q grower-borrower has tel
. cars of fruit and sells only four at
price in excess of the loan on thes
four cars, some, if not all, of this ex
cess can be obtained by the borrower
-
While the rules and regulations
! the Farm Credit Administration deli
.. nitely state that all proceeds OF sal
from pledged fruit must be RENTED !
: the association, nevertheless the assocl
alton will in its discretion re-loan t
the borrower upon the presentation Q
: a new note sufficient funds to increas
the loan per box on the remainin
fruit from the reduced amount up t
! the loan market value originally uset
:, The association, of course, reserves tn
r right to revise the loan value OF TN
fruit in accordance with market con
ditions.
Although the schedule as outline
does not provide for loans on any &C
grade stock, nevertheless the associa
ton feels that there will be cases Whel
&c" grade loans can properly be mao
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