Jamestown, ND - Several First Community Credit Union Managers met recently with visitors�from the Republic of Georgia as a part of an Ag Cooperative Development program. The country of Georgia is located in Asia on the Black Sea near Russia and Turkey. It was a part of the Soviet Union until its independence in 1991.
The goal of the program is to provide the participants a broad experience with the formation, development and operation of farming cooperatives, and associated supporting organizations. While in the US, they visited a variety of organizations including grain elevators, a law firm specializing in cooperatives, Minnesota Department of Agriculture, North Dakota Farmers Union, Cenex Harvest States, National Council of Farmer Cooperatives, and many others.
In the meeting at FCCU, there were four representatives from Georgia, including an interpreter who works for the US Embassy in Georgia,�two cooperative�farmers, and�a government extension center manager.
"I really enjoyed the experience," said Brenda Kirkeby, VP of Sales and Branch Administration. "There are so many differences between our countries and more specifically in farming, but both parties had an opportunity to learn from each other."
Chief Lending Officer, Darin Finck, began the meeting by sharing some background on how our financial institution does loans on both the Ag and commercial side. There was good discussion and a few of the questions asked by the Georgians included: What if a farmer has a bad year and cannot pay their loan back? How much do you need for collateral? Is insurance required for the farmer? How much can you lend without collateral? Whats the difference between a credit union and a bank?
We shared the credit union difference, stating that unlike banks, any profits we have get reinvested back into the credit union and members receive better rates, flexible terms, and other benefits.�Their government does not currently allow credit unions. They have small banks as well as the National Bank of Georgia. The representatives stated that its very difficult to get loans and the rates range from 15% to 30%.
Georgia has a population of approximately four million and is the size of South Carolina. 700,000 households, or 52% of the population, are in the Ag industry. A great majority are are�peasant farmers, with an�average size farm of just two acres. Crops range from�lettuce, tomato,�and cucumbers to strawberries, tangerines, flowers, nuts�and more.�There is some livestock such as chickens and cows, but nothing like the US. Grape production and wine exports are a big sector and a fun fact is that Georgia is one of the oldest wine regions in the world,�dating back to 8000 B.C.
The trip was centered on Ag cooperatives and related industries. Georgia has some coop farms, which tend to be 5-10 farmers with 120 acres of land total. Coop farmers�specialize in one product; for example one farmer may grow a particular�vegetable, one nuts, one strawberries, etc. Unlike most peasant farmers who grow 10 different foods, the cooperative farmers are able to specialize and mass produce a single product. Theyre able to pool together to purchase larger items such as a cold storage facility, drying unit, and a packaging center.
The country has had its share of challenges. As previously mentioned,�Georgia was a part of the Soviet Union until 1991 and since then has had civil unrest and economic crisis for many years. Neighboring Russia band exports for quite some time, making times difficult for the country, especially farmers.�The Georgian representatives stated that infrastructure is not good in the country and that it will take time to build. For example, there are only two elevators in the entire country so residents don't have many options or know what to do when there's a surplus in production.
Much of the discussion centered around the fact that credit unions were founded on the principle of People Helping People and also serving the underserved. It was apparent that the country could greatly benefit from a credit union and the services we provide. An obvious challenge is the fact that the government does not currently allow credit unions. Another is the need for deposits to be able to lend the money out. The representatives said that there is so little trust that the people don't feel comfortable putting their money in an institution.
"It was interesting having a conversation with the Georgians through the interpreter," said Janna Bergstedt, Marketing Manager. "They were talking so fast and you couldn't help but�smile, wondering what they were
really saying! But in all seriousness, it was a wonderful opportunity to learn about their country, culture and see how cooperatives can bring people together in so many ways."
Jamestown, ND - Several First Community Credit Union Managers met recently with visitors�from the Republic of Georgia as a part of an Ag Cooperative Development program. The country of Georgia is located in Asia on the Black Sea near Russia and Turkey. It was a part of the Soviet Union until its independence in 1991.
The goal of the program is to provide the participants a broad experience with the formation, development and operation of farming cooperatives, and associated supporting organizations. While in the US, they visited a variety of organizations including grain elevators, a law firm specializing in cooperatives, Minnesota Department of Agriculture, North Dakota Farmers Union, Cenex Harvest States, National Council of Farmer Cooperatives, and many others.
In the meeting at FCCU, there were four representatives from Georgia, including an interpreter who works for the US Embassy in Georgia,�two cooperative�farmers, and�a government extension center manager.
"I really enjoyed the experience," said Brenda Kirkeby, VP of Sales and Branch Administration. "There are so many differences between our countries and more specifically in farming, but both parties had an opportunity to learn from each other."
Chief Lending Officer, Darin Finck, began the meeting by sharing some background on how our financial institution does loans on both the Ag and commercial side. There was good discussion and a few of the questions asked by the Georgians included: What if a farmer has a bad year and cannot pay their loan back? How much do you need for collateral? Is insurance required for the farmer? How much can you lend without collateral? Whats the difference between a credit union and a bank?
We shared the credit union difference, stating that unlike banks, any profits we have get reinvested back into the credit union and members receive better rates, flexible terms, and other benefits.�Their government does not currently allow credit unions. They have small banks as well as the National Bank of Georgia. The representatives stated that its very difficult to get loans and the rates range from 15% to 30%.
Georgia has a population of approximately four million and is the size of South Carolina. 700,000 households, or 52% of the population, are in the Ag industry. A great majority are are�peasant farmers, with an�average size farm of just two acres. Crops range from�lettuce, tomato,�and cucumbers to strawberries, tangerines, flowers, nuts�and more.�There is some livestock such as chickens and cows, but nothing like the US. Grape production and wine exports are a big sector and a fun fact is that Georgia is one of the oldest wine regions in the world,�dating back to 8000 B.C.
The trip was centered on Ag cooperatives and related industries. Georgia has some coop farms, which tend to be 5-10 farmers with 120 acres of land total. Coop farmers�specialize in one product; for example one farmer may grow a particular�vegetable, one nuts, one strawberries, etc. Unlike most peasant farmers who grow 10 different foods, the cooperative farmers are able to specialize and mass produce a single product. Theyre able to pool together to purchase larger items such as a cold storage facility, drying unit, and a packaging center.
The country has had its share of challenges. As previously mentioned,�Georgia was a part of the Soviet Union until 1991 and since then has had civil unrest and economic crisis for many years. Neighboring Russia band exports for quite some time, making times difficult for the country, especially farmers.�The Georgian representatives stated that infrastructure is not good in the country and that it will take time to build. For example, there are only two elevators in the entire country so residents don't have many options or know what to do when there's a surplus in production.
Much of the discussion centered around the fact that credit unions were founded on the principle of People Helping People and also serving the underserved. It was apparent that the country could greatly benefit from a credit union and the services we provide. An obvious challenge is the fact that the government does not currently allow credit unions. Another is the need for deposits to be able to lend the money out. The representatives said that there is so little trust that the people don't feel comfortable putting their money in an institution.
"It was interesting having a conversation with the Georgians through the interpreter," said Janna Bergstedt, Marketing Manager. "They were talking so fast and you couldn't help but�smile, wondering what they were really saying! But in all seriousness, it was a wonderful opportunity to learn about their country, culture and see how cooperatives can bring people together in so many ways."