How to increase income with regional currencies
Most agricultural companies are deeply loyal to their home regions. Large agricultural enterprises and small farmers alike know the people who live next to their fields and stables. This is a priceless benefit when selling products in farm shops or small, local chain stores. It becomes even more interesting when different traders and producers of a region join forces and try to persuade people to spend more money on local produce than on imported goods. A good example for this is a regional currency.
Silvio Gesell had the idea for a local exchange trading currency at the beginning of the 20th century. He wanted to break the imbalance of capitalism where money makes more money (for instance if you lend money to someone who has to pay it back with interest). He wanted money to be purely there to exchange for goods or services. This idea can only work in a small area with a small number of participants. Otherwise the exchange item quickly becomes a materialistic item again.
Of course, it is not realistic to think you can simply replace the Pound with a regional currency. It is not legal, anyway. But it is an interesting idea to introduce such a currency alongside the Pound. Local employers could benefit and it would make sure local produce was bought – an ideal tool for farmers to increase their direct sales.
A good partner for local initiatives like this would be agricultural companies with a broad range of products. Regional currencies are only viable for all involved if customers can pay for a large range of goods with the alternative money. A lot of thought has to be put into it if you are interested in introducing a regional currency to your area. A single person will never succeed. Such a project needs a number of businesses to show the connection between the regional money and the specialities of the region. Other local businesses, like hairdressers, midwives and locksmiths to name but a few, have to take part to make it a success.
There are two ways of how to use the regional currency. Either it is closely connected to the Pound, in this case currencies have to be “exchanged”. The other way is to have accounts for each businesses and producers, where the alternative currency is credited. Alternative currency vouchers have to be bought with the Pound to buy goods or services.
An additional benefit of regional currencies is the social aspect. There is a small charge for changing regional currency back into Pounds. This charge is used to finance the alternative currency and the rest is divided between local societies and clubs.
What option is chosen for introducing the regional currency does not matter. One thing is sure, though. It gives farmers the possibility of taking part. You can promote yourself in your area and find new customers. There is also the possibility of providing an incentive to your employees where they can be rewarded with some of the regional currency for good work.