The old saying “cold as a Bay Street banker’s heart” doesn’t fit two
Alberta credit unions that are helping farmers through the worst
drought in more than a century.
The Common Wealth Credit Union in the Barrhead, Westlock, Athabasca and
Whitecourt areas has made a special $125,000 patronage payment to
farmers, and the Community Savings credit union in south-central
Alberta is offering zero interest loans to farmers to buy feed.
“We felt it was not right for us to take profit from people who are in
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danger of losing their livelihood,” said Common Wealth Credit Union
general manager Keith Senneker.
About 250 farmers will get a 10 percent patronage dividend instead of
the normal 3.5 to four percent dividend, he added.
“We saw the situation out there, we thought the conditions were
unusual.”
While he said a patronage payment is not uncommon for a credit union
that normally returns part of the profits to members, the size of the
payment is unusual.
In this special payment, members who have paid $10,000 in interest on
their farm accounts will receive a payment of $1,000. This part of the
package is worth about $100,000. The board also will allow farm members
access to the common share capital, which could free up another $25,000
to farmer members.
“We’re here for the community,” Senneker said.
Murray Haubrich, executive vice-president of the Community Savings
credit union, said $1 million in interest-free loans will be available
to cattle producers to buy feed or pay for trucking.
Haubrich said the credit union had heard many stories about cattle
producers being forced to sell entire herds. Offering no-interest loans
was a way to help members and the community, he added.
“If it helps take some of the pressure off them, it’s a help.”
Community Savings is Alberta’s second largest credit union with $1.3
billion in assets, more than 90,000 members and 26 locations. About
1,500 members have cattle.
The loan is interest-free for six months and prime for the next six
months.
