12—Lancaster Fanning,
February 18, 1967
• Contracts
(Continued from Page 5)
of supervision and manage
ment? Can one party act on
behalf of the other’ Are the
two funis sepaiate and inde
pendent’ V’hat tj pcs of skills
aie requited to meet contract
specifications 9
These ai p some ol the many
questions that can. anti usually
should, be clan Red in the con
tract Relationships with third
pai ties should also be made
clear
Conti act clauses may range
m scope f\om the management
and maiketing pioccdmes to
wananties and liabilities, and
pi elective devices in case the
contiact is bleached or unful
filled
TWO EXAMPLES
To get some idea of the
ughts and responsibilities the
piovisions may repiesent, let’s
look at tv.o typical conti act
fanning situations
A lood chain conti acts with
a tanner for supplies of vege
tables The contract stipulates
varieties to be giown It may)
also specifv planting and har-i
vesting dates to meet project
ed seasonal demands Too, it,
mav require use of certain ui-j
sectiudes. some piepacking and
a delivery method The con
ti actor thus exeits consider
able manageual contiol over
on-farms production and as
sumes maiketing uncertainties
Another example one m
volvmg a thud paity is a
conti act oetween a farmei and
a feed dealei foi the produc
tion of bioileis A bioilei pi oc
£ssot, to whom the faimei is
to sell the bioileis, may be
named in the conti act Piovn
sions aie likely to cover not
only the feed ration to be used,
but also the bieed and num
ber of chickens to be fed and
a specification that the broil
eis be sold when they leach a
cei fain weight
TURKEY CONTRACTS
Tin key ptoduceis, paiticulai
ly m the South, aie turning
moie to iisk-shanng contracts
instead of straight loans from
banks 01 financing by feed
companies
Latest estimates show usk
shanng contracts usually with
leecl funis account Eoi 25 per
cent of total pi eduction and
ave trending upward Farm's
owned or leased by companies
account toi 10 to 15 peicent
ot the total output and aie
also pi ejected upward How
e\ei, pioduceis still rely on
conventional loans fiom banks
and othei types of financing
by leed companies for the re
maining 6') to 65 peicent of
their financing
In risk-sharing contracts,
some ot all of the pioduction
usk and most of the major de
cisions ais tiansfened fforn
the pioducei to the contract
ing Turn The film may agree
to assume all oi part of a loss
on financing, oi it may guaran
tee a fixed piKe pei head or
pet pound of tuikey pioduced
Feed Aims accounted foi 63
peicent of total contiact pio
duction in the eaily 1960’s
Sadi films use i isk- c haung
contiacls lo mciease efficiency,
increase volume and deciease
shot turn fluctuations m vol
ume Pioduceis paiticipate in
conliacts to i educe then usk
and to secme financing
LESS CONTRACTS
I\ NORTHEAST
Conti acts vaiy by legion In
the Northeast, theie is little
conti acting except foi hatch
ing eggs In the Micl-wesl most
gioweis use conventional bank
and feed company financing
In the Weet and South, there
is considerable risk-shanng
POUITRYMCN!
PERFORMANCE IS THE
YOUR OWN GOOD MANAGEMENT
PRODUCTION After 8 months of lay Still 80%
(The hens peaked at from 80 - 92%,)
HIS
GRADE Still shipping 92. 3% Grade A Eggs
HIS
Harold soys: “Miller & Bushong is tops in Service. ”
'W -
KEY TO LOW COSTS
And if you want your chickens to
Perform ... try the combination of the
EARLY BIRD OPTIMUM
PERFORMANCE LINE
Does it work?
And
Miller & Bushong, Inc.
Ph. Lancaster 392-2145
(Area Code 717)
FINEST SERVICE ANYWHERE
Of course it does!
HarbM Andrews,
Rohrerstown Area
Poultryman who housed
10,000 birds on the floor
in late June, 1906 0
Rohrerstown, Pa.
Look at