Farm Credit Armenia (FC) obtained additional money from US Embassy in Armenia. These monies must be approved by the Shareholders of FC before the funds can be counted as capital and also so that the Central Bank of Armenia (CB) will approve the new money as capital in FC’s December 31, 2009 Balance Sheet.
Before the New Year meetings were held in the six marzes where FC has member-borrowers (shareholders). In keeping with FC’s democratic true cooperative principles all shareholders must cast their votes for any issues that are appropriate for the meetings. The process included management explaining the issue before the shareholders, the shareholders then haveing the opportunity to ask questions and discussed the issue of new capital. Finally the vote is taken. Sixty Two percent (62%) of our shareholders attended these special regional meetings and every member voted for the new capital. New capital is critical to the sustainability of FC.
Management also discussed with the shareholders FC’s new leasing programs for farm tractors, farm machinery and equipment, and all types of SME and agribusiness machinery and equipment. Shareholders were very interested and expressed their needs and desires for more and better machinery and equipment for mechanizing their farms and businesses.
During the meeting shareholders in several mazes expressed to those in attendance their satisfaction with the tractors they have leased. One shareholder said that “he and his son’s were very happy with how the tractor helped them this year in harvesting their potato crop.” Another shareholder said the following during his speech. “During the past three years I have visited and traveled Greece, Italy and other European Countries studying their agriculture including winemaking. I found that agricultural cooperatives are of the greatest importance for farmers in those countries. I became acquainted with several types of cooperatives and learned a lot about the structure of cooperatives. I believe true cooperatives are very needed in rural Armenia since our farms are very small and collaboration with each other is very important to our survival. I greatly value FC and understand the importance it will have in my farm and agribusiness and support FC fully. I also hope all Armenian rural people will support this cooperative and other true cooperatives in the future. We need to work together through cooperatives for strengthening ourselves and our villages.”
Farm Credit Armenia’s 3rd annual shareholders meeting will be held in early February 2010. As prescribed by the democratically controlled shareholders meeting, new directors will be elected, financial and operating reports will be made by management, and all shareholders will have the opportunity to discuss and suggest to the board of directors and management what they need from FC in the future. A democratically controlled true cooperative that practices cooperative principles is transparent and effective for its members. Furthermore the shareholders are given their democratic right to govern, use and benefit from their true cooperative. FC is governed by its carefully controlled Charter for the benefit of all shareholders.
