Independent Together.

first_imgGeorgia oilseed farmers hope a new-generation cooperative foroilseeds will help them bring money and jobs into rural Georgia.The co-op is now in the early stages of development.The co-op will market oilseed (canola, soybean, cotton and peanut)products to grocery or other retail outlets. A meeting for farmersinterested in the co-op is scheduled May 3 at the Georgia FarmBureau building in Macon, Ga. “This will bring the farmers a greater dollar value and infusejobs and money into Georgia’s rural economy,” said RandyHudson, coordinator of the Emerging Crops and Technologies Centerof the University of Georgia College of Agricultural and EnvironmentalSciences.And the Study Says A UGA CAES study funded by the governor’s office says such a facilitycould be built and economically supported in Georgia. The crushingand refining facility would primarily convert seeds from canolaand soybeans into oils. But it could handle cotton and peanuts,too.To get the facility up and running, according to the study, wouldcost about $56 million. However, it would add about $172 millionin economic activity to the Georgia economy.Running the facility at full capacity would take about 250,000acres of oilseed, said George Shumaker, a UGA Extension Serviceeconomist. Besides the 53 jobs it would create directly, about1,100 jobs would be created indirectly, mostly in rural Georgia.Domestic Market Battle Most of the canola used in the United States comes from Canada.This new facility will help Georgia farmers compete for the domesticcanola market, Hudson said.Canola oil is the preferred oil for many uses because it doesn’tchange the taste of food, Hudson said. It’s used for home cooking,bakeries and salad oils, and some restaurants fry foods with it.Forming a farmer-owned canola facility in Georgia would have littleeffect on the price of canola oil for consumers, Shumaker said.But farmers will have to come together for such a facility towork, said Marty McLendon, a Calhoun County farmer who has growncanola in the past.Independent Together “We want to remain individuals, but we have to be independenttogether,” McLendon said. “We have to have a large numberof growers join forces and get a supply large enough that we canhave a stable supply on the grocery store shelf. That’s the onlyway we’re going to survive farming.”If we can get a plant or processing facility to let thefarmers gain more control in the marketplace,” McLendon said,”it’s got very good potential. We’ve got to get a marketestablished. That’s the main holdback for the expansion of canola.”Growing and selling canola won’t turn around the current farmcrisis “by any means,” McLendon said. “We can’tgrow enough to do that. But it would be another tool in the diversityof agriculture. (It) gives us something else to work with.”last_img read more

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Considering a merger?

first_imgOnce upon a time, credit union mergers were performed only out of necessity. In today’s vibrant marketplace, however, strategy tends to be a driving force for many CU combinations. According to Glenn Christensen, president of CEO Advisory Group, Kent, Wash., nine financial ratios should be used to monitor credit unions’ positions in the face of a potential merger and to evaluate the best next steps.Here, we cover one ratio, return on assets. Get the other eight by reading Christensen’s full Center for Credit Union Board Excellence, “9 Ratios for Evaluating Whether Your CU Should Consider a Merger.”Long-term growth is limited by return on assets. Because CUs can only build capital through earnings, the earnings rate must be equal to, or in excess of, the asset growth rate. If this ratio is not met, net worth ratio will decline.One of your board’s responsibilities is to truthfully answer whether you can sustain a sufficient ROA in the long run to maintain a healthy, competitive growth rate. Pay particular attention to negative earnings. NCUA reports, “54 percent of merging credit unions had negative return on average assets for three consecutive years prior to failure.” continue reading » 5SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblrlast_img read more

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