Lancaster farming. (Lancaster, Pa., etc.) 1955-current, January 26, 1974, Image 8
B—U potter Farming, Saturday. Jan. 26.1974 From Local Ag Teachers: The article this week was prepared by Donald Robinson, teacher of agriculture at Garden Spot High School. CASH FLOW: MONEY MAP TO FARM PROFIT In a business like farming, there are times when cash flows out faster than it flows in and times when the situation is reversed. But more important, on every farm, there is usually a pattern to the flow which more or less repeats from one year to the next. Since today’s management-minded far- Lots of things. Like efficient low-cost milk production. A 12-to-13-month calving interval. Dry cows that freshen in top condition ... ready to produce more milk in the next lactation than in the last. Calves that get off to a quick low-cost growth start. Heifers that have been grown and conditioned to pay back their growing costs early in the first lactation ... then to continue producing well throughout a long milking life. Many good dairymen in this area have achieved such successes with Purina dairy feeding and management programs. There are three Purina programs for milking cows: the Puma Feeding According to Production Program, the Purina Challenge Feeding Program and the Purina Limited Roughage Feeding Program. There’s the Puma Dry Cow Program. And the Purina calf and heifer growing program We’ll be glad to give you the Purina research supported recommendations for any of these programs that have helped mean success for so many dairymen. Many of our customers have told us that their success started at our store where you see the friendly red and white Checkerboard. Let us help you aim for more success in dairying. Call us. Or drop in soon. Wenger's Feed Mill Inc. West Willow Farmers Assn., Inc. Ira B. Landis John J. Hess, 11, Inc. Ph. 665-3248 Box 276, Manheim RD3 James High & Sons John B. Kurtz Ph 354-0301 3^4-9251 Gordonville H D 3 t Ephrata Mwcitoy. Thoughts in Passing mer is handy with a pencil 3 ,< *T . llmßSmf and calculator • it’s ** relatively easy to use your w; farm’s cash flow pattern as a ■ ; starting point to predict .. 1 m r. future income and expenses. ap»»' w » Not to the exact penny, or Y ~ even to the dollar, but close ' 3 * x enough to be a valuable tool „ , Y in the planning and ~ // management of your I'SBmy /j ‘ business. J j WjT// / Other businesses have /I; been doing this for years. . ' Until recently, however, few ,j I > ' > ■ people gave much thought to ‘j,■ uU .ni 1 cash flow accounting in a A ' \ farm business. No one in the > AVuV 1 \ 111 business of farming needs to Donald Robinson be reminded that it takes money. More and more of it > all the time. Capital - managed wisely - has become an essential ingredient in the farm financial picture. Cash flow accounting is one of the most useful tools of modern farm financial management. But as with any tool, using it profitably requires a certain amount of know-how: first in setting up a simple cash flow projection for your business and then cashing it on it. One thing needs em phasizing from the outset; Cash Flow income and outgo projections don’t replace other types of financial statements. The others are still essential as a record of what you’ve accomplished in the past, and of where you currently stand financially. To these, the cash flow adds a future dimension. By now you’ve no doubt realized that a cash flow statement is simply a month by-month comparison of expected cash income and expected cash expenses. And that is exactly what it is. How do you start long term planning? The following points may serve as a guideline: 1. Identify long-term goals to know where you are going. 2. Lay out a year’s plan, breaking it into major projects or steps. Cash flow gives you timing - tells you when and how much capital you’ll need. 3. Review your annual and long-term projections every six months. 4. Your annual plan should have achievable objectives and improvements. 5. Calendarize your in come and expenses and analyze the progress of your business at least once a month. It as a pan cessfui? 7v Ph: 367-1195 Rheems Ph 464-3431 West Willow Ph 442-4632 Paradise 6. Assign yourself priorities. 7. Try to think more like a manager of equity and less like a chore-boy. Leave yourself time to think. It’s easy to rationalize that you ought to work, when you really ought to think instead. Maybe that is the ultimate test of a top manager-how successfully he' can discipline himself to figure ahead. As farm managers need to borrow more and more capital, the lenders are going to want more and > projections of .ur operations and expected returns:. Ponder these thoughts, and consult with your lending mstitution for further assistance to develop your financial “road-map”. Net Income Increases At Dauphin Deposit Dauphin Deposit Trust Deposit had realigned “broaden the opportunities Pftrpp«ny increased its net responsibilities and and accelerate the progress income by 24 percent to authority, and made of younger people S 4 484.697 in 1973 from numerous promotions during throughout the $3,596,450 in 1972. This 1973, which are expected to organization, represents earnings per share of $4.06 in 1973, compared to $3.26 in 1972. W. D. Lewis, president of the bank, also announced that loans increased by 20 percent to $213,572,312 from $177,323,708, personal trusts climbed by 28 percent to $372,601,767 from $289,993,582 and corporate trusts ad vanced 21 percent to $ 196,85 1,000 from $162,484,000. Total assets on December 31, 1973 were $382,430,715 compared to $356,796,361 on the same date in 1972, an increase of 7 percent. Total deposits were $334,991,281 at the end of 1973 compared to $313,474,850 at the end of 1972, an advance of 6 per cent. Lewis said he believes that the bank will experience continued growth during 1974. He stated that the year ahead promises “many changes which represent a great challenge for the bank.” He predicted that the bank will achieve its long term profit and growth objectives. He added that Dauphin Thin Trees Most trees need thinning as they grow older. But corrective pruning can be done while trees are young. Pruning can be done gradually, and involve more and more thinning out of weak, and eventually dead wood as a tree matures. Ask your county agent for more information. TRY A CLASSIFIED AD Spread it on or knife it down. Liquid spreaders from New Idea • Choice of 4 sizes, each with open door or closed end. - 800-, 1100-, 1500- or 2100-gallon tank capacity - Thick V*” steel walls, massive frames - Big 135 c.f.m. pressure-vacuum pump, shielded from weather - Air agitation through pipe system keeps solids in suspension - Plowdown available - Corn row attachment available - Plus many other features including New Idea’s full year warranty Like it? Stop in and look at it! N. G. HERSHE Y & SON A. L. HERR & BRO, Manheim Quanyville LANDIS BROS., INC. Lancaster LONGENECKER FARM SUPPLY Rheems A.B.C. GROFF. INC. New Holland CHAS. J. McCOMSEY &SONS ROY H. BUCK. INC. ffickory HUI, Pa. Ephrata, R.D.2 KINZER EQUIP. CO. Kinzer STOLTZFUS FARM SERVICE CochranviUe, Pa.