Page 14 RAIN January/February 1985 · ARABLE is not a lending institution itself, }:)ut an association of people agre~ing to collateralize their assets t;ttrough an'existingfinancia1 institution. It has three separa:te funds: the Credit Fund, the Direct Loan Fund, and the Trust Fund. All are a:dininistered through a host financial institution. · · · · Tom Forster, a landscape designer and gardener, founded ARABLE after hearing a detailed discussion of SHARE (see RAIN IX:3, pages 18-19) at a workshop sponsored by the E. F.·Schumacher society. Forster persuaded the Amity Founda?on df Eugene to sponsor a VISTA grant proposal to enable him to organize a similar entity, but one focused on local economic development through the food system. For his interim Board of Directors, Forster recruited people with a wide array of skills and perspectives within the local agricultural economy. As is true in most areas throughout the country, rriany small farms in the area need capital for development that has not been available to them through traditional financial institutions. ARABLE's market survey identi-· ; fiecfa considerable number of potentially sound invest- . ment loans not currently being serviced by either commercial financial institutions or federal loan programs. Urban supporters of local agriculture, on the other hand, find that their money is invested in banks that refuse to make loans to local farmers and distributors. They find these banks usually sending their money out of the state-sometimes even to South Africa. Here, · ARABLE's market.survey showed that savings funds can be attractedfrom local qepositors even at conservative interest rates under the following conditions: D The depositor knows that his or her money is bei~g used for local development (which benefits the locaf depositor); . D.The depositor feels that he or she has some voice·in the decisions about where the funds will be .placed; 0 The depositor feels assured that the funds are being used in .socially and environmentally sound ways. ARABLE is not a lending institution itself, but an association of people agreeing to collateralize their assets through an existing financial institution. ' ARABLE now enables these people to invest in what they believe in, to let their dollars work for their cause. Moreover, ARABLE plays another valuable role for producers, distributors, and consumers alike-one of education. For local food producers and distributors, ARABLE will provide technical assistance, enabling those w.ith greatest experience.in one area of the business-budgeting and planning, for exa~ple-to share it with others: ARABLE's intention is ~o provide more Jh'\ln jusf financial support to local agriculture. While access to credit for intensive, small-·scale agricultural development'is a critical component of ARABLE's program, other components include'new market development, consumer .· education, technical assistance for producers, and support for favorable policies for agricultural development in local and state governments. . · ARABLE is_an outgrowth of the spirit of cooperation, caring, and sharing that has characterized the new wave back-to-the-land movement prevalent in much of the ,. Pacific Northwest. It is this spirit that ARABLE is ex- · panding upon and helping t~ make more accessi~le and concrete through its loan application and review.process. ARABLE stresses to consumers the· opp~rtunity to invest directly in the local economy. . The loan application and review process allows advice and feedback among the prospective borrower, consumer, and producer members of ARABLE ~o strength.en the enterprise and its ability to ob.tain financing. A Loan Program Director and the Loan R~view Committee assess the potentiaJ borrower's need for technical assist- .. ance, perhaps requiring a contract for technical se.rvices · or training before loan approval. . ' · Through a highly visible media campaign, stre,ssing an urban-rural partnership, ARABLE educates a larger share of food consumers about tht: needs ofloc;_al agriculture. ARABLE stres.ses ~o these consumers the. opportunity to'invest directly in the focal econo.~y_. Through · development of a local food system, they will be fnvesting in long-term, sustainable development of the region's natural resource base. Depositors' satisfaction will be not only financial returns but the increase in the availability of locallyproduced, quality food prqducts for their own consump- .tion. ARABLE·enables its depositors to take pride in knowing they have helped to increase direct and indirect employment in the local food system and that they have enhanced the long-term sustainability of local agriculture. '- .. ( How the Loan Fund Works ' I , ARABLE Credit Fund: Members or tnembt!r organizations of ARABLE may apply for collateral -supp()i't from the I Credit Fund for loans made through the host i~stitution. Short-term loans which are primarily self-liquidating, meet the eligibility requirements and fulfill one or more of the goals of ARABLE will be reeom~ended for ARABLE Credit Fund backing. Following approval of the loan by the Loan Review Committee and the Board of Trustees, the financial institution.is author:ized to dis1burse the loan to ARABLE members.
RkJQdWJsaXNoZXIy NTc4NTAz