C36—Lancaster Farming, Saturday, January 26,1980
KANSAS CITY, Mo.
Positive factors “decidedly
outweigh” the negative in
the near-term outlook for
cattle breeders and in
vestors, despite an im
pending recession and its
potentially depressing effect
on consumer demand, says
Ronald Jams, Jr., president
of Oppenheimer Industries,
the Kansas City-based
On-farm storage:
OCEAN CITY, Md. - This
year promises to be the most
expensive one yet to hold
gram in hopes of obtaining
higher prices later on,
University of Delaware
extension crops marketing
specialist Carl German told
a crowd of 850 farmers at the
recent Delmarva Corn
Technology Conference in
Ocean City, Md.
It will cost more in at least
two ways, he explained: (1)
higher interest charges for
financing inventory
(perhaps obtained at 10 to 12
percent), and (2) greater
Penn
conducts survey
UNIVERSITY PARK -
Preservation of farm land,
health care, employment,
opportunities, education,
transportation, energy,
consumer protection-these
are some of the issues that
concern many Penn
sylvanians today. They’re
also issues in a com
prehensive survey being
conducted in mid January by
Pennsylvania State
University researchers
Called “Pennsylvania:
The Citizen’s Viewpoint”
the survey will ask more
than 20,000 randomly
selected Pennsylvanians
their opinions on a wide
variety of issues facing the
state and local communities.
The survey is being done,
according to project dirctor
Dan E Moore, so that local
officials, citizens’ groups
and civic organizations can
know what Pennsylvanians
see as priorities for the 80’s.
In preparing the survey,
Moore and project coor-
Investment exec sees brighter cattle markets
Jarvis observed. “Yet the a problem. Many country
mood among both ranchers banks already have loan-to
and farmers is rather deposit ratios in the 65-70
conflicting. They don’t know percent range, the highest
whether buoyancy over level in many years.”
current conditions or caution Jarvis recommended in
about the future should light of conflicting signals,
dominate their decisions. producers and investors
“Normally, for example, “proceed with caution.”
this would be a time for “But I certainly would put
recycling hefty proceeds into as much emphasis on the
additional land and equip- verb as on the noun,” said
ment,” he explained. the Oppenheimer president.
“But the threatened “ProceedT Because with
recession and concern about positive indications as
interest rates are producing strong as they are, Ido not
second thoughts about new see this at a time for stan
mvestment. And availability ding still in the cattle or
of funds also may prove to be gram industries.”
diversified agri-investment
firm.
“Although we’ve seen a
slight weakening in cattle
prices in recent months, a
number of important
statistical trends prove very
heartening for the near
future, at least,” said Jarvis.
“Most significantly, the
Department of Agriculture
has revised downward its
estimate en fourth-quartc-
risk that prices may not
mlprove enough to pay for
holding your crop.
“You can be sure that the
costs of on-farm grain
storage facilities are going
to continue to nse,” added
the specialist.
The big question is
whether revenues for drying
and storage will be able to
keep pace.
“If you decide that on
farm storage is for you,”
German cautioned the com
farmers gathered m Ocean
City’s Convention Hall,
“shop around and do your
homework. It’s no longer
State
dmator Anne Ishler con
sulted with over 1000 of these
key people.
A unique aspect of the
survey is the large number
of people who will be asked
to complete the question
naire. The mam reason for
this, says Moore, is to have
enough people sampled in
every county so that results
can be analyzed by county,
by region and by major
urgan area.
How well survey reflects
citizen opinion will depend
on how well people respond
to the questionnaire.
When similar surveys
have been conducted m other
states returns were m the 70
percent range. Moore feels
that Pennsylvania can do at
least as well
If you get a copy of
“Pennsylvania. The
Citizens’ Viewpoint” in your
mailbox take time to let our
opinion be known.
beef production, predicting a
17 percent decline in place of
the 10 percent drop it
originally foresaw. That
certainly should have a
positive effect on December
futures prices.”
Jarvis also noted that
weekly cattle slaughter
dropped recently to about
113,000 head, which is 21
percent below the figures of
will
it pay
appropriate to make flat
recommendations regarding
the cost and benefits ob
tained from on-farm gram
storage.”
The economist based his
remarks on the results of a
study he reviewed recently
on the economics of on-farm
com storage.
The study takes into ac
count the costs of owning and
operating a variety of
storage facilities, including
batch-m-bm dryers with
storage, batch-m-bin and
stirrer dryers with storage,
automatic batch dryers with
storage, and continuous-flow
dryers with storage at an
nual volume rates ranging
from 6000 to 100,000 bushels.
When operating
costs were calculated for
these different systems, a
24,000-bushel facility was
found to be the smallest size
unit which is economically
feasible at today’s operating
costs and com prices.
The rate of return before
taxes from on-farm storage
units compared m the study
ranged from negative to
nearly 30 percent, reported
German.
In some cases, the rate of
return before taxes was
below the interest rate which
could have been earned on
the money invested m the
system. AH systems in
volving 6000-bushel storage
capacity yielded negative
rates of return.
Furthermore, on-farm
storage facilities of the type
compared in the study only
begin to become feasible for
the 500-acre gram producer.
And rising costs will have
the effect of making the
minimum farm size required
even larger, predicted the
economist.
Smaller producers wan
ting to store gram do have
a year ago. And total red
meat and poultry production
now is expected to be off by
one percent in the fourth
quarter by USDA estimates,
although a three-percent
increase had been expected
“Price fundamentals for
gram as well as cattle look
very positive, despite crop
harvests that currently far
outstrip domestic demand,”
in 1980?
alternatives, he noted. They
can look into the possibility
of pooling their resources,
labor and capital with other
farmers.
Currently members of one
grain company on the Shore
pay an annual cost of ap
proximately 59 cents per
bushel for com drying and
storage (including interest
on inventory).
Compared to this, one
local commercial facility
charges somewhere in the
neighborhood of 98 cents per
bushel.
The important thing is to
look closely at all your op
tions, stressed the
economist. Every farmer
should make a careful
analysis of his costs and
potential returns before
deciding whether or not to
invest in storage facilities on
the farm.
AGRIPRO
SOYBEANS
AGRIPROIO
A great new early group one
variety, Agnpro Ten can give you a
head start over other varieties,
with excellent emergence and
standabihty, and race one
phytophthora resistance.
AGRIPRO 20
A group two purelme variety
that's topped university tests
across the bean belt, Agnpro
Twenty is resistant to race one
and tolerant to race three
phytophthora
C4BNAPB
1 PLANT BREEDENS First in the science of yields."
SMUKETOWN, PA PH 717-299-2571
Dealers Wanted in Pennsylvania & Northern Maryland
LIVESTOCK SCALES
For
Hog Operations
TRUCK SCALES ALSO AVAILABLE
GARBER SCALE COMPANY
121 Witmer Rd. Phone
Lancaster, Pa. 17602 (717) 393-1708
ALL SCALES STATE APPROVED.
The difference
between luck
and science.
Distributed by
AGRIPRO 25
An early group three variety,
Agnpro Twenty-five has
demonstrated exceptional yield
potential across the entire bean
belt. It can withstand
phytophthora stress, and has ex
cellent standabihty.
AGRIPRO 40
Our newest full-season group
four variety, Agnpro Forty has
delivered outstanding yields, with
phytophthora resistance, ex
cellent emergence, good seedling
vigor and good standabihty.