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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<j Putchman.
DISTRIBUTOR
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