Credit Union: What Is Its Importance For The Expansion Of Agriculture?
Have you ever heard of that old popular saying: does unity make its mark? If you know this phrase, you will understand that a credit union consists of a nonprofit association and prioritizes the granting of financial resources to the members .
In this way, it contributes to the members to develop a specific economic activity and obtain an income, which provides a good quality of life for the relatives. In rural areas, this model of association is very common and has been quite successful.
In addition to granting credit, the cooperative makes the participants have the same goals . This initiative allows for more information exchange and greater collaboration for the success of the entity.
Participate in a socially focused action
Give opportunity to family farmers staying in the countryside and raising incomes is one of the hallmarks of rural credit. By being part of a cooperative, it is possible not only to participate in governmental programs that enable the granting of financial resources , but also to count on a high quality technical assistance.
Undoubtedly, this allows for greater social inclusion by providing support to a segment of the population of lower income and with more difficulties to maintain an economic activity in isolation.
Another proof that a rural credit cooperative is aimed at collective well-being is the management style . In it, the participants have decision-making power and opinions on various topics, such as production logistics, pricing policy, among others.
Thus, the entity adopts a democratic and transparent conduct, because it allows the cooperative a series of measures, for example:
- monitor financial management;
- suggest improvements;
- point faults;
- seek a better qualification for the success of the institution.
When integrating a cooperative, it is necessary to accept the rules. One of them is the vote, which has equal value for all. All participants have the same importance when relevant decisions are made for the entity to present a more agile and efficient management.
Easier to get credit
Imagine that you are a farmer who wants to increase production, but you have difficulty getting individual financing from a bank. How can you reduce problems with red tape and get the necessary financial resources?
A good answer is to be part of a rural credit cooperative. There are several economic advantages, for example:
- the cooperative gets loans with lower rates compared to commercial banks;
- possibility of saving on the purchase of inputs, because it is feasible to negotiate a larger quantity of items due to the participation of all the members;
- technical assistance that is not detrimental to the family farmer’s budget.
If you are looking for some examples of a successful credit union, it is interesting to know some numbers from CCB Credit. According to the National Bank for Economic and Social Development (BNDES), there was a transfer of R $ 492 million in the second quarter of the agricultural year 2015/2016, through 25,349 contracts.
During 20 years of activity, the cooperative enabled the release of R $ 5.4 billion to the members thanks to the National Program for Strengthening Family Agriculture (Pronaf). Thus, CCB Credit has become a benchmark in actions to strengthen the economy in the field, benefiting more than 2.6 million farm families.
Increase incomes with the help of a credit union
One of the main characteristics of a cooperative is that it has no focus on profits. Therefore, the financial surplus is divided among the cooperative, based on the participation of each of them in the entity.
Think of a cooperative that raised more than it needed to pay all expenses over a year, including funding and technical assistance services. The financial resources that were not spent are distributed among the cooperative, considering their investment in the institution.
If you want to get a better and more profitable production , it is worth participating in a credit union . This is because the entity has a commitment to the socioeconomic development of a region and respects the environmental characteristics of the locality, practicing actions aimed at the sustainability.
In this way, the cooperative will invest in a segment of agriculture that stands out in a region. The measure will allow the improvement of production and, at the same time, an increase in the income of the members . In addition, it increases the revenue of a municipality, because the inhabitants will spend on commerce more often and pay more taxes.
Investing in technology
Modernizing production is one of the goals of farmers. But is it feasible to do so in a time of economic crisis? The answer is yes, as long as you join a credit union.
The entity is able to offer adequate financing to the reality of each producer . This initiative allows harvesters, tractors and more efficient storage and irrigation systems to be acquired.
With the resources granted by the cooperative, the farmer can still adopt other actions, such as:
- prioritize soil recovery;
- adopt initiatives for environmental preservation;
- produce certified seed and seedlings;
- reduce waste during harvesting.
The quest for constant improvement must also be a goal in the rural sector. Delivering higher quality products increases the chances of closing good deals and expanding the consumer market.
Have more ability to market production
With credit at lower interest rates and skilled technical assistance , a credit union allows farmers not only to invest in production but also to market commodities more easily.
Certainly, a credit union contributes to increasing income and improving the quality of life of the participants . Through serious and competent work, an institution enables the farmer to stay in the field and stimulate the development of the local economy.