C26—Lancaster Farminf, Saturday, January 12,1980 Lebanon Co. DH>A (Continued from Page C 25) Marlin Hitz B 3 82 0 88 6 45 7 Reuben 0 Martin B 3 64 4 89 2 513 John H Hartman B 3 53 5 92 8 48 4 Kenneth Mase B 3 90 5 82 2 461 Arnold Acres 3 93 0 87 7 461 Mark C Patches B 3 37 0 87 1 46 2 Mervm W Horst B 3 35 2 96 6 44 7 Robert Martin B 3 45 3 912 46 5 Isaac E Zimmerman 3 22 0 90 2 44 6 Arthur R Krall B 3 66 2 901 47 4 D Hostetler 4 Sons 3 83 5 82 3 46 4 Luke 1 Patches B 3 46 8 88 6 47 6 M Luther Bennetch G 3 59 0 85 0 47 4 Reuben O Martin B 3 62 8 85 1 47 3 Walter M Martin B 3 40 6 84 4 45 5 Dennis Wampler B 3 1118 88 4 50 6 David Brandt 3 67 0 83 9 45 6 Warren Hetrick B 3 35 4 95 5 45 9 Ferndale Farms 3 98 8 80 4 43 3 Jeffrey D Rymoff B 3 32 9 87 6 49 2 PharesZ Musser 3 55 8 85 9 43 2 Albert F Moyer 3 83 3 83 0 43 9 Clifford Groff B 3 54 1 83 9 44 3 Ernest P Detweiler G 3 45 8 81 8 44 2 Edwin E Funck 3 413 86 4 52 8 Lane Menn Hosp 3 871 89 3 43 5 M Luther Bennetch G 3 58 8 85 5 -46 2 Marlin Hitz B 3 82 9 86 1 44 4 Richard L Heilmger B 8 28 6 87 8 40 8 San Bo Holstins 3 61 7 87 5 44 0 Jacob N Smith & Son 2 74 9 87 9 30 6 Enos N Lembach 3 32 4 92 8 44 4 Marlin M High B 3 36 8 837 45 4 Richard L Heilmger B 8 28 0 84 9 38.9 D E Zimmerman G 3 44 0 88 7 41 4 H E Bomgandner B 3 46 4 86 6 41 0 R&R Shirk 3 72 2 84 0 40 3 Lentzdale Farms B 3 64 0 83 8 391 Enos N Zimmerman B 3 74 8 93 2 37 6 H& E Martin B 3 93 2 84 9 44 3 Jacob N Smith 4 Son 2 81 8 86 J 29 6 Bucher Brothers B 3 37 1 89 9 39 8 Hoover Farms 3 82 0 79 1 40 2 Irvin Horst 3 53 7 77 7 40 0 Larry G Shuey B 3 62 3 85 9 39 6 Enos N Lembach 3 33 0 861 40 6 Mervm G Weaver G 3 105 3 83 0 39 3 Leon H Kline 3 58 3 77 9 37 3 Marlin D Heisey B 3 41 3 77 6 44 4 Melvin Krall B 3 82 5 85 5 37 6 Mt Echo Dairy Fm B 3 109 8 95 0 37 1 San Bo Holstems 3 64 6 84 1 39 8 John Brubaker B 3 52 0 83 9 40 5 James Zimmerman B 3 56 0 88 4 42 2 Lester Martin B 3 58 0 84 2 39 8 Hoover Farms No 283 49 0 78 7 36 9 Melvin N Nolt B 3 51 0 78 7 36 1 Mark Copenhaver B 3 62 4 82 7 37 8 P & Chas Heffelfmger3 30 0 76 8 38 3 Ivan M Weiler B 3 65 0 82 1 38 3 Mervm G Weaver 00 103 0 83 3 38 4 Maurice M Bennetch 3 126 4 84 6 37 2 John H Stick 1 34 9 91 9 32 6 Jesse L Weaver B 3 53 8 73 2 38 3 Hollow Pride Farm B 3 37 4 77 3 36 8 RH Zimmerman B 3 91 8 82 5 36 4 Linford L Halteman B 3 43 6 82 3 37 0 Raymond K Martin B 3 42 1 82 8 36 3 Melvin Krall 00 77 0 81 0 33 6 Galen Bollinger B 3 124 5 86 5 47 8 CarlJ Bross G 3 75 1 91 0 37 1 J C Zimmerman B 3 104 4 83 4 37 7 Roy H Weaver B 3 66 0 76 1 35 9 M Bomberger& Son B 3 71 6 82 2 38 3 Cyrus Y Bomberger B 3 204 8 79 9 33 1 Harold Myer B 3 227 5 72 2 40 5 Ernest Wagner 3 37 8 76 3 35 6 Russel S Houser 3 32 2 73 0 34 3 RavßSattazahr^^B^lo^^^7^^^3^3 DON’T BE “MACHINERY POOR” The term “machinery poor” is a misnomer it’s akin to being “land poor” or “rent poor” or any other kind of poor. Carrying a heavy investment in something that gives back too little in return can make you poor - figuratively speaking. I don’t mean to say that all machines are bad in vestments - far from it. Owning the right equipment that will economically ac complish work that you must get done can be the best investment you can make. The important thing is to honestly look at all of the reasons for owning, or not owning, a given machine. The Penn State Farm Machinery Management Guide lists six questions to consider BEFORE you in vest in farm machinery. 1. Will it perform the desired job and return maximum profit to the business? Does it fit the present system, or must companion equipment also be bought? 2 Are vou planning ex- John D Bomgardner 3 David B Lehman B 3 Robert Sollenberger G 4 R Emnch & Son B 3 Amos Balsbaugh Jr 3 G & V Arnold B 3 Christian High Jr B 3 Dennis L Showers B 3 Thomas E Hostetter B 8 JohnHTschudy B 1 Kenneth E Ober G 3 Clyde E Deck G 3 D & D Bucher 00 Donald Bomberger 4 A Ralph McCrone B 3 Richard Batz 3 James E Gelsmger B 3 Den Mar Goat Dairy BO The Dairy Business By Newton Bair pansion or custom work 9 3. Is the first cost high and the annual use low? 4. Will it provide the least cost method of getting the job done? Is custom work available at reasonable cost? 5. Would a used machine have the reliability and capacity to do the job at less cost? 6. Would the money to buy the machinery produce greater return if used elsewhere? After you get past the first two, take a good look at number three. Whether you are thinking about a self propelled combine or a four row com planter, the cost will be high you can be sure of that. But you can justify a rather high cost if the annual use is also high. 'The problem is to determine the best relationship of cost to hours or acres of annual use. One quick example will illustrate what I mean. For want of space, we’ll skip the mathematics. (Forms are available from your local Extension Office to work out your problem.) 1. We are considering the purchase of a new 12 foot self-propelled combine. It will cost in the neighborhood of $60,000. We expect to use it on about 400 acres a year and hope to use it for ten years. We assume that it will cost about three acres an hour and the operator’s tune is worth $5 00 an hour. What will it cost per acre to own and operate this implement? Used only on 400 acres a year, it will cost $25.05 per acre just to own it. Operating cost will be an additional $8.15 per acre, making a total cost of $33.20 an acre. Can you hire someone to do it cheaper? If you can hire a custom operator at $20.00 an acre, your break-even acreage then jumps to 660 acres. So, to justify ownership of this equipment, you’ll have to harvest an additional 260 acres per year. 2. You grow about 100 acres of corn and 50 acres of soybeans, so you are looking for a new four row planter. You’ll trade in the old one so the net cost of a new four row no-tdl planter will be about $7,500. (Don’t you like to dream!) So, we’ll be using it for 5 years on 150 acres a year. What is the cost per acre to own and operate? We also figure a power cost to operate the corn planter. You already own a 60 horsepower tractor with an annual use of 400 hours and a useful life of 10 years. ★ Bam Cleaners, Manure Pumps, Manure Stackers, Silo (Tnloaders, Bunk Feeders, Feed Conveyors MARVIN J. HORST DAIRY EQUIPMENT 1950 S. sth Avenue, Lebanon, Pa. 17042 Phone: 717-272-0871 The initial cost was about $B,OOO. So, we try to minimize the cost per acre, but even then it works out to $2.77 an acre to own and operate the tractor. The ownership and operating cost of the new planter is $7.78 an acre, making a total of $10.55. Adding the labor cost of $2.25 per acre brings the total cost of owning and operating the planter on 150 acres to $12.80 an acre. If you plant 200 acres a year, the cost will come down to about $lO.OO an acre. Compare these costs to the cost of custom operation and decide if it will be more economical to own the machinery or hire it done by a custom operator. Of course, there are all kinds of variables that will influence your decisions on what to buy. We haven’t even considered such things as timelessness, cash flow, high interest rates and many other things that will in fluence a decisiop on owning a machine. We’ve said nothing about pride and prestige or status symbols, any of which can help shape our desire and decision making process. The important thing in today’s business world is to give top priority to the economics of owning farm equipment. The return m dollars must equal or exceed the cost of ownership, in order that we don’t become “machinery poor.”