Leaders of Maine Harvest Credit Union (in organization) conducted a survey of 36 small farms and other agricultural producers, with average annual revenues of $155,000, to determine their financial needs.
A separate customer survey of MOFGA members in 2012 established how willing consumers would be to place initial deposits with such a credit union. In small farm mortgages and specialized business equipment loans, they think they will find their niche.
Here’s some of what they found:
— There’s a potential loan market of 693 farms between MOFGA and Maine Farmland Trust members, with a loan demand of $185.4 million, about $90 million of which is in land-related financing needs.
— Most of the surveyed farms in that profile have not taken loans or financing through the Farm Services Agency or Farm Credit East, which focuses on financial services for the agricultural sector.
— Farms at that size reported no shortage of demand for their products and, in aggregate, expected revenues of $14.7 million to increase next year by 27 percent.
— The customer survey found 80 percent of MOFGA members would have interest in joining within the first two years and 56 percent would be willing to place initial deposits totaling in the range of $6.5 million.
— The addition of two savings products — a high-yield savings account and certificate of deposit accounts — boosts total possible deposits to $65 million across potential members. They expect up to $15 million in the first eight years.