Farmers could now get government credit if they had necessary liquidating elements and security. These loans were being offered to farmers in Gentry, Harrison, Worth and Daviess Counties. The loans could be obtained to purchase such items as seed, equipment and fertilizers, or to cover the cash costs of growing, cultivating or marketing crops; and dairy and poultry products.
Most of the loans would run from three to twelve months, and were due when the crops financed were sold. Loans on such things as dairy cows could be extended up to eighteen months and be repaid from the sale of products of the dairy financed.
The minimum amount of a production loan was fifty dollars. The interest rate would be six percent, charged only for the actual number of months the loan was outstanding. The interest was not to be collected until the loan was due. The security for the loans would consist of first liens on crops, livestock, or other personal property on which a lien, or chattel mortgage could be taken to secure the loan adequately. The lien could be taken on property already in the possession of the borrower, or to be purchased with the money borrowed.
Fortunately, not all farmers in Daviess County needed credit, but for those who did, the association stood for a business organization and not as a charity organization. The amount of the loan, and the eligibility of the loan, depended on the security furnished by the applicant and the liquidating elements involved. A small fee was charged to inspect the property offered as security by the applicant, but usually no charge would be made for inspection of the loan wasn’t considered favorably.
Researched by Wilbur Bush