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.