USDA notes improved
WASHINGTON, D.C. - Farm returns in 1978 are crop receipts, and stepped- seem to be in a good equity
After several long, .lean turning substantially higher, up government payments. position, particularly
years, U.S. farmers are say ''analysts, who cite USDA economists recently established farmers who
finally realizing improved sharply increased livestock summed up the situation this have benefited from rising
incomes, says USDA. earnings, moderately higher way: “Generally, farmers real estate values. Although
mm.
USED COMBINE
MF4loDieselw/Cab, 13’ Platform, A __
3 row N.R. Corn Head *0;250a
John Deere 55 Corn Soybean 4 _ AA
Special 12’ Head 1,700.
USED HAYBiNE SPECIALS
John Deere 1209
New Holland 479
USED BALER SPECIALS
New Holland 67 Baler
John Deere 14T
John Deere 14T w/ejector :
John Deere 24T ' „
John Deere 24T w/thrower
New Nolland’27s w/thrower
NH 269 w/thrower
USED HARVESTER SPECIALS
NH 880 2 Row Narrow Row Head
NH 717 Single Row Head,
9 Knife Cutter Bar ,
JD #l2 w/smgle Row Head
MISCELLANEOUS
New Set 18 4x30 Snap on Duals w/New
Goodyear 6 Ply Tires
3pt Hitch for 630 tractor
Maximize your crop savings on slopes to 18 percent
with a John Deere Side Hill Combine
_Qn-the-go, automatic separator leveling from
feeder house through cleaning shoe is yours with a
Side Hill 6600 Combine. As the separator levels on
slopes to 18 percent, the header pivots to parallel the
'ground. Keeping the separator level maximizes your
crop savings because no material drifts to the
downhill side as with a conventional combine. And to
master hilly fields, you get a 128 hp 404 cubic inch
diesel engine. The cylinder is 44 inches wide.
Matched headers include 4- and 6-row corn heads
and row-crop heads. Platforms with rigid cutterbar in
sizes from 13 to 22 feet... with flexible cutterbar in
sizes from 13 to 22 feet.
USED COMBINE
Evergreen Tractor Co. Inc.
30 EVERGREEN RD., LEBANON, PA 17042, PHONE (717) 2724641
AC Model Ew/10’Platform,
Pickup Reel, 2 Row 7CA
Corn Head, Real Clean / DU-
USED PLANTER
John Deere 7000,4 row
wide, condition-Al «p4 y 75
$2,450.00
2,750.00
MFI7S Diesel
USED PLANTER SPECIALS
Tag 11550 John Deere 1250 -
6 Row Plateless
11941 John Deere 494 A - 4 Row
11934 John Deere494A - 4 Row
USED COMBINE SPECIALS
AC - C w/4 Row Corn Head 14' Platform
Cockshutt 427 w/Power Steering 410’ Platform
$1,150.00
750.00
700.00
950.00
1.750.00
2.350.00
1.750.00
*USED GRAIN DRILLS
John Deere 17x7
3,650.00
Co-op 15x7 Fert Gram Drill w/grass seed attach
MF 21x7 Plain
1,750.00
350.00
USED ULLAGE SPECIALS
John Deere 4-16" Hyd Reset Three Point
Ford 4-18" Semi-Mount Spring Reset
MF 720 Disk Harrow, 28 Blade, 26" Blades
w/hyd. cylinder
John Deere 160010’ Chisel Plow
$1,050.00
400.00
USED COMBINE
USED TRACTORS
/«
rm
some farmers in impeotant
producing areas of the
Nation remain vulnerable to
further financial setbacks
the overall financial health
of the industry appears
sound.”
By'midyear, the experts
were projecting net farm
income for calendar 1978 to
reach about $25 billion.
While that’s still well below
the record $3O billion earned
in 1973, it’s a $5-billion
improvement over last year.
As always, certain far
mers will fare better than
others depending on their
relative efficiency, the size
of their operation, and the
commodities they produce.
For livestock and poultry
producers as a group, the
economists see solid gains.
Prices for livestock and
products have turned higher
than previously expected
and continued basic strength
seems likely.
In die beef cattle arena,
feedlot operators have taken
a pounding since 1973, when
feeding costs shot skyward
relative to prices received
for fed cattle. However,
cattlemen’s earnings began
improving last year,
gathered strength into this
year, and should soon signal
the end of the liquidation
phase of the cattle cycle.
As producers begin
stabilizing their herds, beef
slaughter will fall off, fur
ther shoring up cattle prices.
Current estimates put
average Choice steer prices
in the mid-sso’s throughout
the second half of 1978 -
compared with last year’s
average of just over $4O.
Hie longer term situation
suggests declining beqf
production and rising prices
for at least the next 3 years,
which economists say is
necessary to materially
improve the financial shape
of feeder livestock
producers.
Recent loan repayment
difficulties of cattle raisers
are expected to ease,
although substantial
refinancing will probably
occur as the buildup phase of
the cattle cycle gets un
derway.
$5,850.00
$2,350.00
650.00
1,275.00
Except for poor years in
1971 and 1974, hog producers
managed to avoid the
prolonged bard times that
plagued cattlemen. And
while they faced the same
soaring feed costs that
cattlemen did, hog
producers generally
received favorable prices for
their finished animals
relative to the price of feed.
Hog producers look to be in
a good financial position this
year, and will probably not
be adversely affected by a
slight rise in pork production
as 1978 draws to a close.
$8,750.00
1,450.00
$750.00
750.00
1,650.00
$2,250.00
2,450.00
3.950.00
1.325.00
Unlike hog producers,
dairymen got caught in a
profit squeeze that hung on
through 1973-75, but finally
eased in 1976. Returns
turned sharply higher last
year.
Current legislation 'will
HARRISBURG - Sport
smen are warned that it is
illegal to operate
snowmobiles on State Game
Lands during the deer
season.
Lancaster Firming, Saturday, December 2,197 S
income
Snowmobiles illegal
on game lands
help the dairy sector fend off
hard times over the next
several years. The Food and
Agriculture Act of 1977
requires a milk price sup
port level of not less than 80
per cent of parity through
March 1979 and also
specifies that the level be
adjusted semiannually
through March 1981 to
reflect changes in the parity
index. Because of the higher
support prices, financial
conditions of dairy farmers
should improve this year and
beyond.
Grain producers, par
ticularly wheat farmers,
watched their cash receipts
rise sharply during 1971-74,
but saw the bottom begin
falling out of the market die
following year. Wheat
farmers were hardest hit by
bumper crops both here and
abroad.
Calculated as a return to
land, earnings from wheat
plunged from $47.65 an acre
in 1974 to minus $B.Bl at 1977
market prices. Therefore,
while earnings in 1974 could
have paid a debt of $468 an
acre at 9 per cent interest
over a 25-year period,
returns in 1977 wouldn’t even
cover labor and
management charges.
Corn producers found
themselves in similar
straits, while soybean far
mers did considerably
better.
Prospects of stronger
demand for grains and -a
number of specific actions -
including changes in the
grain reserve program,
acreage diversion for feed
grains and cotton, and a
higher target price for wheat
- should improve the cash
flow positions of producers
of these crops.
A closer look at some
typical 3,040-acre Montana
wheat farm show that net
returns (net cash income
less depreciation and the
cost of family labor and
management) plummeted
from about $93,500 in 1975 to
s3s,ooothe next year and less
than $15,500 in 1977.
But given better price
prospects and barring ad
verse weather, this farm
should realize net returns
approaching $42,000. This
would equal just over 7 per
cent of equity, versus less
than 3 per cent last year.
bn a 400-acre east central
Illinois com and soybean
farm, the debt to equity ratio
last year dropped below the
previous 2 years, mainly
because assets - led by
soaring land values -
climbed at a much faster
pace than farm debt.
The rapid rise in assets,
coupled with a $15,000 drop
in net cash income, caused
net returns to slide from 16
per cent of equity in 1976 to
less than 6 per cent last year.
Net cash income on this
typical Illinois com and
soybean farm is expected to
recover substantially this
' year to around $35,000.
Hunters are also reminded
that State Forest Lands are
closed to snowmobiles'until
after the end of the an
tlerless deer season, which
concludes on December 16.
41