—Lancaster Farming, Saturday, December 30. 1972
22
Rural Bankers
Reveal Farm
Loan Guides
How does a banker size up
potential agricultural
borrowers?
Commercial bankers in the
South Central Great Plains,
according to a recent survey,
determine an individual’s loan
limit by measuring his:
current financial situation;
past repayment performance;
available collateral; and
purpose of the loan.
Bankers were asked if a far
mer’s participation in Govern
ment programs also affected his
loan limit. Some bankers replied
that if participation is a farmer’s
most profitable alternative, it
should be a requirement for
securing a loan.
Though the bankers indicated
they didn’t analyze the effects of
Government programs on in
dividual situations, most said
they considered Government
payments when projecting the
gross income of the borrower.
Land was generally not used as
collateral on short-or in
termediate- term loans.
However, bankers said they
allowed substantially higher loan
limits on full and part owners
than on full tenants. Full tenants
must secure loans with
machinery and equipment or a
compensating balance.
Bankers felt that the
borrower’s tenure status, loan
purpose, and overall financial
condition were more important in
setting collateral requirements
than size of the loan request.
Nevertheless, some banks
required that collateral equal at
least 30 percent of the loan value.
The prevailing interest rate in
the South Central Plains was 8
percent at the time of the survey
(February 1972), though 9 per
cent was generally quoted in the
western part.
Individuals who ranked in the
bankers’ “best risk” category
could secure loans at TVa percent
annual interest. Borrowers that
were considered poor risks were
often charged at least 9 percent.
Some of the banks reported
outstanding loans carrying a 10-
percent annual interest charge.
A MILKMOVER
SYSTEM gets you out of
the barn sooner-with more money
in your pocket! It saves your lugging
heavy pails of milk from barn to cooler.
• HAS MORE MILK CAPACITY
• PERMITS FASTER MILKING
• ELIMINATES EXTRA HELP
• PROTECTS MILK QUALITY
• IS 100% SELF-CLEANING
• HAS ELECTRIC CONTROLS
• FITS INTO ALL BARNS
• EASILY INSTALLED
Available thru your local dairy
equipment dealer or call the factory
collect to arrange for a free demon
stration on your farm
Manufactured by
d/oug
m INDUSTRIES, INC
WQHNSON
P O BOX 213 EL'CTON. MD 21*21
Phone 301-398-3451
(
f ' d °' 5 1
i
It seems that this year the
weather has been tjhe subject of
much discussion between far
mers. We had the flood in June,
dry weather in August, and yet a
record rainfall for the year.
Our lives seem to be like the
weather—sunny days, rainy
days, and some so-so days. When
a cow is lost, the feeder chain
breaks, the vacuum pump stops,
and your little girl steps on a nail,
it is surely a dismal day. But then
there is the day when the milk
inspector says everything is
okay, your husband praises your
apple pie, your children get
mostly A’s on their reports and
your Christmas cactus blooms on
time.
So, as we come to the end of
another year, We are glad to have
our health and our families. We
remember the past but look to the
future.
I’ve been doing some more
painting. The trouble with this
work is that one thing leads to
another. After the new wallpaper
is hung, the woodwork doesn’t
look so good. Then when the new
stair rail is painted and in place,
the steps need a new coat of
varnish.
Much as I enjoy painting, I’m
hoping to lay down my brushes
for a few weeks at least and do
some embroidery again.
Often we become so staid in our
ways that we really resist
change. Yet, I’ve often found that
when I must substitute an
ingredient in a recipe it turns out
to be a better dish than usual.
Children aren’t set in their
Try A Clossified Ad
It Pays!
ways and the other day when
Cindy could not find her
pocketbook when it was time to
leave for the school bus, she
found another place for her lunch
money. She simply took off her
stocking cap and dropped the
change down into the tip of the
cap and off she went.
•MORE MILK • MOM MEAT
.more profit
MADISON SILOS
Div. Chromalloy American Corp,
1070SteinmetzRd.
Ephrata, Penna. 17522
Ph. 733-1206
LOCAL DEALERS
Frank Snyder
Akron /
Caleb Wenger
QuarryviUe
Landis Bros. Inc.
393-3906 _
Lancaster
Carl L. Shirk
Lebanon
Sollenberger Farm Supply
Center-port, Pa.
Ph. 215-926-7671
READ LANCASTER FARMING
FOR FULL MARKET REPORTS
Mr. Hog Producer
the jet age product developed by Pfizer Research that
out performs all antibiotics. Also hear one of the
nations outstanding hog nutrition men, Mr. Glenn
Burleson from South Carolina.
This is one meeting every hog producer should attend.
You’ll be glad you did.
859-2688
548-2116
867-3741
YOU ARE CORDIALLY INVITED TO THE
LANCASTER FARM & HOME CENTER
Thursday, January 4, 7:30 P.M.
SEE FIRST HAND INFORMATION ON
MECADOX