* •t>n i n n fHVMt»iM‘n♦ t I M » ' * ' o < ♦' ' •
Biggest
A dairyman who enlarges his
herd is almost sure to boost his
net farm income, but not
necessarily his efficiency.
So concluded an ERS
examination of costs and returns
on commercial dairy farms in
nine regions of the U.S.
The study, using data from the
last Census of Agriculture in 1969,
analyzed commercial dairy
farms in five size categories
based on gross sales. These
conformed with the five
“economic classes” used by the
Census where Class V farms are
the smallest (sales of $2,500-
Aerial Ladder Equipped
FARM PAINTING
We Spray it on and Brush It In!
FOR FREE ESTIMATES
CALL COLLECT 717-393-6530
OR WRITE
HENRY K. FISHER
2322 Old Phila. Pike
Lancaster, Pa. 17602
MR. FARMER
ARE YOUR HOME
SHORT SUPPLY?
Red Rose Farm Service offers a complete selection of
Solanco Dairy Rations to meet every farmers feed
ing requirements.
Red Rose Solanco Dairy Rations are manufactured
with the highest quality of ingredients available, and
fortified with the proper amounts of vitamins and
mineral requirements.
GRAIN BANKING PROGRAMS AVAILABLE.
MAIN OFFICE
N. Church Street
Quorryville, Pa.
786-7361
Dairy Herd May Not
$4,999) and Class I farms are the
largest ($40,000 or more).
For study purposes, ' l ‘herd
size” was the average number of
milk cows per farm in each
economic class. Average U. S.
herd size for economic Class II
farms, for example, was 40 cows.
Regionally, there was little
difference in the average number
of cows per farm in each sales
group except for Class I farms.
Average herds in this category
ranged from 241 cows per farm in
the Southwest (California) to 66
cows in the Lake States, and 78 in
the Northeast. Nationally, Class I
RED ROSE
SERVICE
GRAINS IN
Have you seen our coarse textured dairy feeds?
For Complete Information Call One Of Our
Conveniently Located Stores Today
FARM
INC.
Red Pbse
ANIMAL FEEDS
farms averaged 98 head.
Milk and other product prices,
land and labor costs, cow
productivity, and crop yields
varied widely among the nine
regions. Nevertheless, net farm
incomes on farms with similar
herd sizes were remarkably
similar.
Biggest income differences
occurred among farms in the
same region with different herd
sizes. In the Corn Belt, for
example, net returns to farms
averaging 24 head (Class 111
farms) came to $5,819. But on
dairy farms in the same-region
with 38 cows (Class II) net in
comes averaged $11,162.
The pattern was the same in
each region-net farm incomes
rose significantly with herd size.
Production costs also varied
widely with herd size. Total costs
per cow were highest on small
farms with only nine to 12 head
(Class V farms). When herd size
doubled, costs dropped sharply
but began rising gradually
thereafter.
Costs per cowrin each region
were generally lowest—thus
efficiency highest—on what’s
commonly defined as one-man
dairies—those having roughly 40
cows.
ister Farming, Saturday, September 15,1973
Be Most Efficient
Unlike net incomes, however,
production costs per cow differed
considerably among farms of the
same size in different regions.
For example, on farms with
about 16 milk cows, costs ranged
from $492 in the South Central
region to $796 in the Southwest.
Wholesale Farm Prices
Off Sharply
Wholesale farm prices “have
already fallen more than 11
percent” since figures for the
Bureau of Labor Statistics (BLS)
wholesale price index announced
were compiled on August 14,
Secretary of Agriculture Earl L.
Butz said last week.
“That drop of more than 11
percent in a 23-day period
illustrates an important point,”
Secretary Butz said. “When farm
prices go up, they usually come
down later. But when other prices
go up, they usually stay up.”
The BLS
wholesale farm prices up 23.1
percent in August.
Between August 14, when
figures for the wholesale price
GRAIN
ELEVATOR
New Providence
786-3427
BUCK, PA.
284-4464
The study also estimated
average costs of producing 100
pounds of milk by herds in each
size group. In most regions, unit
costs per hundredweight dropped
sharply as herd size increased to
40 cows, then declined only
gradually.
index were collected, and Sep
tember 6, “prices received by
farmers for potatoes and beans
plunged 30 percent and oil crop
prices fell 27 percent,” the
Secretary said.
“In the important area of
meats, the prices that farmers
get for meat animals are sharply
lower than just 23 days ago
Wholesale prices for hogs have
dropped 33 percent. Beef prices
are down 13 percent; and
wholesale egg prices are 10
percent lower,” Secretary Butz
said.
“In other words, in a 23-day
span, half of the gain in wholesale
farm prices announced has been
wiped out,” Secretary Butz said.
“The last 20 years are just
another example of the principle
that when farm prices go up, they
usually come down. In the last 20
years, farm prices have gone up
in 10 of those years and have
come down or stayed even in 10 of
those years,” Secretary Butz
added. “But industrial prices
have gone up 16 of those 20 years;
service charges dimed in 20 of
the 20 years, and wages in
creased in 20 of the 20 years.
“These other prices that go up,
usually stay up. I ask you: Will
automobile prices be down next
month? Not likely.
“Will your fuel bill cost you less
this winter than last winter?
Don’t count on it.
“Will rents go down, or will
refrigerator and furniture prices
be pared back next month? Not
on your life, they won’t.
“Will your doctor charge you
less next month, or will the
hospital charge you less next
time? That’s even a silly
question,” Secretary Butz said.
“We’re learning some very
important things about how our
economic system works in this
hassle over food costs,”
Secretary Butz concluded:
“One, is that for a perishable
product such as food, you don’t
get more production by paying
less.
“Another is that when farm
prices go up, they usually come
down later, while other costs tend
to go up and stay up.
“For years we have had
ridiculously cheap food in this
country. Even now, while food
may take 15.7 percent of our
‘after tax’ income this year, that
is only up from 15.6 percent last
year, and the lowest outlay in the
world for the most plentiful
supply of the best quality food
you can find anyplace on earth.”
ERTH-RITE
MAXICROP
(Formerly Sea-Born)
ALGIT
ZOOK &
RANCH, INC.
R.D. 1 Gap, Pa. 17527
Phone 717-442-4171
19