U • -k\Ql .Q viawns-l I&—Lancaster Farming. Saturday, Feb. 9. 1974 From Local Ag Teachers: The article this week was prepared by Lew Ayers, teacher of agriculture at Epbrata High School. Many fanners found 1973 a hectic year for cattle and hog prices and even more un believable as far as feed and other production costs go. The business of farming has changed in recent years, being less able to absorb losses from low prices. Farmers today have more machinery and equipment; they’re feeding more livestock; buying more feed, and in many cases probably borrowing more money at higher interest rates. With so many purchased imputs at increased costs, farmers become caught in a tight squeeze when prices they receive go down. More and mere fanners each year decide the risk is tod great and get out. An increasing number of farmers are starting to hedge their livestock and crops through future con tracts. The commodities market can serve a good purpose for farmers who want protection against falling prices. The use of a hedge is nothing more than locking in a price for your livestock or crops before they are marketed. As an example, lets assume you recently started some feeder cattle that you hope to market this October. When you figure the pur chase price of the cattle - and all the production expenses - you can pretty well deter mine what selling price you need to insure a good profit. The next step is to check the futures price of October cattle in the newspaper. Lets say that October cattle are quoted at $52.00 per hun dredweight. If you think $52.00 is a good price, then P. L. ROHRER & BRO., INC. SMOKETOWN, PA Thoughts in Passing why not lock in the price with a hedge by selling your cattle. When October rolls around and finished cattle are selling for $45.00 per hun dredweight, pat yourself on the back because you sold your cattle eight months ago on the futures market for $52.00 per hundredweight. This actually means you probably lost money on your actual (cash) sale of your cattle, but made a good profit on your futures con tract. Don’t forget the cash market for October cattle could go higher than your locked-in price of $52.00. Which means you take a loss on your futures contract, but you can make it up by the actual cash sale of the cattle. Remember, the future and cash price of any commodity move up and down in basically the same way. Don’t forget that hedging guarantees a price, but not necessarily a profit. For the farmer, the price insurance that is obtained is the single most important reason for hedging. The information contained in this article just scratches the surface on hedging commodities. Before you get involved in the market, make sure you talk to an HAY & STRAW SALE EVERY WEDNESDAY AT 12 NOON PAULZ. MARTIN SALESSTABLES 2 miles East of Intercourse Sale managed by Harvey Z. Martin Phone Lane 397-3539 Lew Ayers The "Systems Approach" OF Bi(j Putchman $ Lets You HOG SYSTEMS FARROWING [DRY CONFINEMENT FEEDING 'LIMITED FEEDING AUTOMATIC WATERING NURSERY FEEDING - teLATS & HEATING [GATES & FENCING .LIQUID FEEDING HERSHEY EQUIPMENT Co. The Systems Company 215 Diller Avenue New Holland, Pa Ph. (717) 354-5168 or (717) 872-5111 Lebanon Co. Dairy Day to Feature Farm Panel ThP nrns and cons of Bair, Assistant County feeding P synthetic protein Agent, will moderate the feed additives to dairy cattle panel, will get major attention at the all day Dairy Day scheduled for Wednesday, Feb. 13th at 10:00 in the Municipal Building, Lebanon. A panel of Lebanon County dairymen will relate their experience- with using synthetic non-protein nitrogen (NPN) in dairy feed. Panel members will be Glenn Gingrich, Lebanon, Route 4; David Brandt, Route 1, Annville; Guy Hitz, Route 1, Annville; Victor Ziegler, Route 2, Myer stown; and Lester Kreider, Agway Fieldman. Newton experienced broker about your situation. Talk to other fanners that use the futures market and leam all,you can. Read the newspaper, and follow the prices of commodities that interest you. PUT IT ALL TOGETHER Today’s profit-minded poultry and livestock producers must think in terms of an automatic system. Big Dutchman pioneered the system concept for one reason: it is the most profitable and reduces costs for you. “System thinking” can help you plan your way around problems before you begin building, or it can help you automate away problems in your present buildings. Hershey Equipment Co. is geared to provide all components of the system, which assures that the pieces fit together in the most profitable package reducing costs dramatically. Some of Our Systems Include AUTOMATED CAGE SYSTEMS CHICK START & GROW CAGES FLAT DECK STAIRSTEP & DOUBLE DECK TRI-DECK 4 DECK CHAMPION FEEDING AUTOMATIC WATERING ENGINEERED EGG COLLEC TION ■B ■I^H OTHER SYSTEMS INCLUDE In addition to the farmer panel members, Dr. Richard Adams, Dairy Specialist from the Pennsylvania State University, will be the main speaker during the morning session. Adams is in charge of the Penn State Forage Testing Laboratory and is recognized as an authority on formulating feed rations for dairy cattle. The afternoon session will be chaired by Harold Bollinger, ABC Director. Area Supervisor Edwin Sauder and Branch Manager Lloyd Peterson will assist with arrangements. Featured on the program will be a film “The Bull Comes To Life”. Lunch will be served in the Extension Service offices by ABC personnel. BINS & FEED AUGERING VENTILATION AUTOMATIC AIR INLET MANURE REMOVAL MANURE DRYING EGG PROCESSING Mon Wins Not 1 ! Sewingtontest One serious shortage was alleviated January 24 when a young California man was the first male to ever win the top spot in the national tmais of the Make It Yourself With Wool contest when he sewed up the senior division of the 26-year-old program. Gary Oden, 19, 0 f Fremont, California was the first male to ever reach the national finals of the contest, which was open to males two years ago. He won the Senior Division with an energy saving, 100 percent American wool navy blue suit of Anglo fabric which he designed, made and modeled himself. The 6-foot-2-mch male winner competed with 27 senior entries in the contest and won after only two years of sewing ex perience. TRY A CLASSIFIED ’ | TURKEY & BROILERS SYSTEMS CHAMPION TROUGH FEEDING, AUGERMATIC PAN FEEDING CHAIN-O-MATIC PAN FEEDING 1 WATERING SYSTEMS TURKEY FEEDERS 1 BROODERS CHICK STARTING FOUNTS FEED METERING SCALES .. . . i! 4 a I IfoJ ' r-j AUTHORIZED 6i