Role of Credit Unions in Agriculture

The objective or aim of this thesis is to attempt to examine the possibilities of a rural credit union to provide at least a partial answer to the problem of fulfilling the short-term credit needs of farm people. To do this, it is necessary first to devote some time to an examination of the various sources of short-term credit which are presently serving in the agricultural field in order to understand the relative importance of short-term credit to the rural people. A basic understanding of the credit union operations appears to the writer to be essential in evaluating the services performed by these institutions Along these same lines, an investigation into the background of rural credit union development may be of benefit in attempting to determine the apparent soundness and workability of the whole idea. A study of the sources of existing short-term credit and credit union operations and their historical background appears to be important in evaluating the experience of some particular area wherein rural credit union development has been carried on to some extent. Lastly, some principles of guides must be derived from the other phases of this study to determine the feasibility of adapting rural credit unions in some other area such as Nebraska. The credit union idea envelops one of the most important democratic principles of cooperation and self-help. An effort will be made to explore the extent to which rural credit unions actually develop these principles. It was the goal of the writer to explore the role of credit unions in providing some of the short-term and intermediate credit in agriculture. Whereas it is true that several of the credit sources have great possibilities for expansion in supplying the needed capital required for successful farming operations, the major emphasis will be placed on rural credit unions. Advisor: Kris Kristjanso