4—Lancaster Saturday, November 4, 1961
FROM WHER
Corporatio
Corporation Farming is almost a
dirty word to some of the farmers in
our part of the country. “Until recent
ly corporation farming Was much mis
understood and mistrusted by most
farmers throughout the United States.
Until recently most farmers looked
on a corporation as a huge business
with vast assets arid holdings, a board
of directors and thousands of shares of
stock listed on the stock exchange.
Now Farm Management specialists
report that this attitude seems to be
changing. While very few farmers
have actually made the move to incor
porate their businesses, many are,ex
ploring the advantages, disadvantages
and problems that go along with incor
poration.
These farm management specialists
believe three major points figure in the
change of attitude among farmers. In
creased capital requirements of mod
ern farming, the need for a more flex
ible method of transferring property
between generations and recent chang
es in the income tax law which pro
vides for certain small businesses to
file and pay their income tax as indi
viduals rather than pay the corporate
rate of tax, have caused many farmers
to look again at the possibility of in
corporation of the farm business.
W. T. McAllister, extension farm
management specialist from the Uni
versity of Delaware believes there are
five main-advantages and four major
disadvantages of forming a corporation
to run the farm business.
On the plus side, incorporation pro
vides a simple way for the farm busi
ness to be operated continuously as a
unit even after the death of one of the
major stockholders In many cases, the
farm, under similar circumstances on
a privately own basis, would be bro
ken into smaller inefficient units or
-sold out of the family.
Under a corporation, shares of stock
in. the farm could be divided among
family members in any manner desir
ed. Stock could be sold, given away or
inherited Ownership may be transfer
red when a child becomes of age or at
the death of the owner without subdi
viding the farm.
Generally speaking, stockholders
are not liable for the debts of the cor
poration. They risk only their invest
ment; whereas, with single ownership
or a partnership, the owner or owners
are liable for all debts of the business.
Capital for a corporation can be sec
ured through the sale of stock, bonds
or debentures. The continuous opera-
4 H Achievement
Recognized
By: Wmthrop Mernam
Ass stant County Agent
November 8 has been des
ignated as National 4-H Ach
ievement Day and as such is
a fitting time to pay tribute
to five 4-H membeis from
our county who were state
winners m the National 4 H
Awards program
The awards program is di
rected by the National 4-H
-Foundation with headquar
ters in Chicago The purpose
is to coordinate the support
of many leading mdustnes
in our nation, who wish to
honor outstanding 4-H mem
bers across the country. The
members so honored take
part m the National 4-H
Club Congress held annually
the last week of November,
in Chicago, with approxi
mately 1,500 4-H’ers from the
Cm ted States and many for
eign countries in attendance.
A number of mdustnes
Qnd businesses of national
importance contribute finan
cial support to travel expen
ses *or delegates as well as
operating funds for the Cong
ress itself
Pennsylvania will send a
delegation in excess of thirty
young people with five rep
resenting Lancaster County.
WE STAND -
E
n Farming --Good Or Bad?
But there are some minus points, to
be considered. • Corporations are re
quired to keep more records than most
farmers now keep. A farm chartered
under state law must keep a stockbook
minutes of meetings, statements of lia
bilities and assets, and financial rec
ords and accounts. Further, franchise
tax and Income tax returns must be
filed for the corporation.
In a single ownership business,
farm profits are taxed only as income
af the operator. Corporate profits,
which are distributed as dividends may
be subject to both corporate tax and
personal income tax.
There are several small expendi
tures connected with the actual ast of
setting up a corporation. There are
fees and taxes for filing and recording
the articles of incorporation, fees for
legal advice. Federal Stamp Tax in
issuance of shares of stock, and other
incidental costs.
On the average family farm, the
owner-operator makes his own decis
ions about what, how much, and how
to produce. Under a corporation, the
operator is restricted by law, the artic
les of incorporation and the by-laws of
the corporation.
We are by no means suggesting that
all Lancaster County larms be incor
porated. We do not believe that even a
large portion of them should be so
handled but we do believe incorpora
tion of the business is one way of
maintaining the family farm. We do
not believe that incorporation of itself
will destroy the family farm.
Farms need not be huge, unweildy
operations to function as a corporation.
There need not be large “numbers of
interested persons or shareholders in
the business. Incorporation is only one
way of operating the farm—one way
which has not been considered by
many farmers because it is not gener
ally understood by farmers.
If you are faced with a farm own
ership problem within the family,
there are good legal councils to guide
you in making a wise decision. You
should look into all possibilities before
you decide.
At least that’s how it looks from
where we stand.
The following young people A i ___[ i
were awarded this honor this uutai v-oupie
year on the basis of their 4- (From page 1)
H record and achievements: its latest Herd Improvement
Darvm Boyd, Ephrata Rl, Registry testing year with a
State Achievement Winner; lactation average—calculated
Donald Trimble, Quarry- an a two milkings a day, 305
ville Rl‘, State Field Crops day mature equivalent basis
Winner; —on 25 individual records of
Joyce Denlmger, 602 En- 13,787 lbs of milk and 526
field Drive, Lancaster, Home lbs of butterfat.
Economics, A certificate of this award
Barbara Gamble, Columbia has been sent to the Royers
R 2, and Lois Ann Overgaard, by the Holstem-Friesian As-
Lancaster R 4, Bread Demon- sociation of America
stration. A , , ,
The above mentioned folks fhp a Slgmfy ! n f
are but five of over 1400 club , + . award + WIU b f Planted
members m our county It f mee in * of
should always be remember- area r 6 erS rom their
ed that many other members
did a fine job in their pro
jects during the year and as
such not only bettered them
selves, but their clubs and
communities as well
Participation in 4-H work
can develop a person not on
ly in skills and "know how”,
but in leadership, character,
and personality. Although
only a few members achieve
honors in the form of an out
of state trip, the many oth
ers continue to advance thru
their 4-H activities and move
toward the time when their
4-H records will be complete
and strong enough to enter
the National Awards Pro
gram.
P O Box: 1=524
Lancaster, Penna.
Offices:
53 North Duke St.
Lancaster, Penna.
Phone - Lancaster
Express 4-3047
Jack Owen, Editor
Robert G. Campbell, Advertising
Director & Business Manager
Established November 4 1955
Published every Saturday by
Lancaster Farming, Lancaster, Pa
Entered as 2nd class matter at
Lancaster, Pa under Act of Mar.
S, 1879 additional entry at Mount
Joy, Pa
Subscription Hates' J 2 per year
three years J 5. Single copy Price
5 cents.
Members Pa. Newspaper Publish-
Patronize Lancaster Farm- As^iatfom ‘° n: Ka - tlonal Edltorua
ing Advertisers. ~ .
tion of a corporation tends to make
long-term loans more attractive to
lending agencies.
In a corporation, stockholders who
are employees or officers of the busi
ness are eligible for certain benefits
such as health and accident insurance,
workmen’s compensation and Social
Security coverage.
Lancaster Farming
Lancaster County’s Own Farm
Weekly
is to say, a Christian will be con
cerned about wages, housing, edn
Bible Material: Matthew 25:31-46: cation, culture, in his community,
Luke 10:25-37. f* * S * ot t 0 W f t .f «»«««
deal himself, he wants it for al
others. Jesus’ parable of the sheep
and the goats brings out this Chris;
tian concern in unforgettable fash
ion.
Grow In Concern
Lesson for November S, 1961
I ~~"~ i... —..l—i -.-—I in which every one would have «
THE noticing reader,' or one job he enjoyed,-everybody would
who goes to Sunday school and receive a decent wage, nobodj
looks over the topics of the whole, would go cold or hungry, every,
quarter’s lessons, will have ob- .body would have comfortable, safe
served that the study this quarter ,and beautiful homes in which tc
(Oct. 1-Dec. 3D is all about Chris- Jive; a world in which there would
Hans growing. First we had a study be no more war but only peace
- about how Jesus and prosperity,—would that lovely
grew, then one world be one in which there would
about how Chris- be no need for Christian concern?
tians grow, in gen- You know it wouldn’t. To be sure,
era!; then aaum. there would be no beggars, pris.
her of studies oners, sick or helpless people in
‘this being the that world. But alas! there would
last) asking «the stiH be evil in the “brave new
lame •'question world.” Paul covers a good deal
Growing—in what of territory in his word of counsel:
•espect, in What *Tf any man be overtaken in a
,ways? In wb»t fault, you who are ‘spiritual’ re
may a Christian be,expected to store such a man...” If eveiy
grow? We have seen that a Chris- one in the world were as rich or
tian can grow in the knowledge of as “lucky” as some people are
God, in his Christian relationships, now, it would just open more peo
in his life and activity in the pie’s eyes to a fact that should be
church; and now we" shall think well known as it is: the rich and
how a Christian can grow in the lucky have their troubles too.
“Christian concern.” If anybody Wt Grow in Concern
prefers to substitute “love” for Our Christian concern for the
concern, all right; only remem- we if are 0 f others must grow, if it
her that Christian love is con- is t 0 be ChrjsWil ke. until we are
cern, not emotion alone. distressed by spiritual need not
Christian Materialism' less than by physical need A man
There is a bad materialism, or with a starvmg soul is an even
rather, bad materialisms, and more tragic sight than a man with
there is a good one as well. 'With a wasted body But only quite ma
the bad materialism. Christians hire Christians can see this How
should have nothing to do. With does Christian concern grow in
sacred obligation, laid oil us„ .by us? It grows in somewhat the
the Lord himself. same way as concern grows for
One bad kmd of materialism is
the theory that nothing is real ex
cept matter, stuff (whether visible
like water or invisible like elec
trons or chemical energy) which
can be weighed and measured.
This is the kind of materialism
preached and practiced in com
munism; Christians understand
that it is false. Another bad kmd
is very common in America; it is
the notion that material things are (Based on outlines copyrighted by
tTifi rnoct irmnorfaTi} +Vnr»cfc in thp the Division ol Christian Education,
me most important xmngs mme atlonal council of the Churches of
world. When you hear some one Christ an the U. S A, Released h"
arguing that things, or property. Commaaili IPress Serv,ce 1
are as important or more impor-
tant than people, you may know
you are listening to a materialist^
not of the Christian kind. The
Christian materialism declares
Now Is The Time « * *
BY MAX SMITH
TO FEED AMPLE ROUGHAGES Most
pastures are very short in this part of the
state this fall; dairymen and all livestock
producers might well keep up the health
and condition of their animals by feeding
liberal amounts of hay and silage daily
With quality roughages the feed costs may
be reduced. Mgny successful dairymen
feed silage two times daily and hay thicc
and four times. This results in more effi
cient production.
MAX SMITH
TO PRACTICE TRENCH SILO CARE—Many trench silos
are covered with the black plastic in order to seal out the
air and reduce spoilage; tills will work fine if the plastic is
kept down tight'on the surface of the silage; however, maul
feeders will keep rolling back the cover as the silage is re
moved and not make any effort to keep it pinned dovn
tight; if the wind Js allowed to get under the cover at the
open end of the trench, then spoilage will occur over the
entire top. Keep the plastic down tight at all places and at
all times.
TO HAVE FORAGE TESTED—The winter. fSWing season
is at hand and quality hay and silage is very important; at
the same time it is good management to actually know the
true feeding .value of the hay and silage Some livestock
men might feel they can tell the real value by the appeai
ance and the aroma of the roughage; this ability could be
very mis-leading and be the reason for poor production 01
for too-high production costs Local livestock producers, and
especially dairymen, are urged to have their hay and silage
tested this fall and request a free grain feeding program.
Forage cartons and additional information available at the
Extension Office.
TO USE CARE WITH NEW CORN—With the grinding of
new corn at this time of the'year it is important that spec
ial care- be exercised to prevent heating and spoiling; with
the moisture m the new corn, grinding should be frequent
so that the corn chop will not heat Depending upon the
moisture content of the,porn, it will often heat in 24 to 43
hours. The solution is to grind several times a week and to
mix the corn chop with other feeds to prevent heating and
molding, *■
that things are 'important, mouji
not the most important, stai le E ]
the only kind of real things. bJ
the Christian goes on to say thj
part of our “love”—that is, cod
cern for our neighbor, must iji]
dude his material welfare. Thai
If we could get a world at lasi
pets, or livestock. If a farmer
wants to encourage his boy to be
a farmer too, he doesn’t give him
lectures on animal husbandry, he
gives him a calf or a pig to look
after and perhaps exhibit at the
fair You learn to take an interest
in animals by taking responsibil
ity for them. You learn to take
interest in people, just by being
a Christian friend
1