Dl4—Lancaster Farming, Saturday, March 22,1980 How Pennsylvania dairymen prospered BY SAMUEL A. DUM Penn State University UNIVERSITY PARK The $BOB.B million of farm milk sales in 1978 were 42 percent of all farm sales. Another 10 to 11 percent of total farm cash receipts also come from the sales of cull cows, dairy calves, and surplus crops. In total, then, dairy farms accounted for over 50 per cent of all cash receipts of Pennsylvania farmers in 1978. Approximately 15,000 commercial dairy farms of 10 cows 'or more were operating in Pennsylvania in 1978, about 32 percent fewer than in 1967. Cow numbers in 1978 averaged 700,000, about five percent fewer than m 1967. However, due to in creasing milk production per cow, total tnilk production in 1978 was 7.88 billion pounds, up 15 perent from a decade ago. The value of the 1978 milk production was 2.3 times that of milk produced in 1967, mainly due to increased milk prices, which averaged $5.62 in 1967 and $11.29 per cwt. in 1978. Major adjustments are taking place in the dairy industry at the farm level. Economic and technological changes have forced some dairymen to discontinue their operations. Some have left voluntarily for other opportunities, or have retired. Others have maintained viable production units. What have been some major changes occurring on Pennsylvania dairy farms in the past decade in amount of resources, capital requirements, and incomes? Further, what are some factors associated with the better incomes? Since 1967 the business records of farmers who use the Pennsylvania Farmers COMPLETE FARM PAINTING We Use Quality PAINT AERIAL LADDER EQUIPMENT • Modern and Efficient Method • Reasonable Prices • Spray On and Brush In Method • Sandblasting If Necessary FOR FREE ESTIMATES WRITE ESH SPRAY PAINTING (OanteiS Eth C Ralph Milter) SPRAY ON AND BRUSH-IN PAINTER Box 350 A Ronkt PA 17572 or call this number 717-687-7007 or 717-687-8262 INDUSTRIAL COMMERCIAL RESIDENTIAL Returns could be better in the past 12 years Association and the Penn sylvania Agricultural Records Program have been the basis for publishing an annual dairy farm business summary by the Farm Management Section, Penn State Extension Service. These summaries provide the reference points for this article. It must be recognized that the summaries are not of a representative sample of Pennsylvania dairy farms. They are better-than average commercial dairy farms m terms of resources \ I t 1 / t / I /Ml ' / \ (/ S 1 NEWS: FROM FACTORY VV/l\VW|N|/vi Due to the mild winter weather Katolight is offer ing special reduced prices until Factory Inventory is Reduced to Acceptable Levels. BRUSHLESS single phase PTO alternators are reduced to $BOO.OO to $1500.00 below LIST PRICE! FOR A LIMITED TIME ONLY! W Systems 1 Agri-AlteiW TRACTOR DRIVEN Model Selection Chart Model No. 15LR1 25LR1 35LR1 45LR1 55LR1 85LR1 Engine driven units also available 1 to 1000 KW for standby or prime power. Single phase wound to 175 KW. Prime power units available to operate on methane or ethynyl for farm total energy systems. HARLAN MARTIN P.O. BOX 35, MARTINDALE, PA 17549 Bus. Ph: 215-445-4800 Res. Ph: 215-267-7771 available and managerial ability of the operators. Size of business is an important factor in deter mining income. There are different measures of size. They are man equivalent, number of crop acres, number of cows, hundredweight of milk sold, and value of assets. When measured in physical terms, such as crops acres, number of cows, and milk sold, the farms summarized in creased in size substantially less than when measured by value of assets. INVENTORY TOO HIGH!! Momentary Surge Watts 15,000 25,000 105,000 35,000 45,000 135,000 165,000 55,000 85,000 255,000 SEE US NOW BEFORE OFFER IS CANCELLED! MARTIN'S MACHINERY Over the 12 year period, the man equivalent in the summaries decreased 2 percent; number of crop acres increased 15 percent; number of cows increased 20 percent; hundredweight of milk sold increased 36 percent; while the value of assets increased 220 percent. The 220 percent increase in value of assets reflects a major appreciation m land values and a somewhat smaller percentage ap preciation in other asset values over the period 1967- 78. KATOLIGHT LR SERIES Minimum Required HP Watts 45,000 75,000 130 C.B. Amps Volts 120/240 120/240 120/240 120/240 120/240 120/240 The average value of land per total acre (buildings excluded) increased 416 percent and buildings 108 percent. The value of machinery and equipment was 121 percent greater in 1978 than in 1967. The value of crop and supply inventory, reflecting mainly higher unit crop prices, increased 188 per cent. The per animal unit value increased 159 percent, but as a result of more livestock the total livestock value in creased 221 percent. It must be noted that the amount and kinds of buildings, machinery, and equipment in 1978 probably were not comparable to those m 1967; hence, in creased values for these items were not an accurate reflection of appreciation in values. However, the values for 1978 do reflect the increased investment required to finance a commercial dairy Phase Wire 100 150 175 225 350 farm today compared to 1967. In 1967 the average in vestment per cow was about $2000; in 1978 it had in creased to almost $5300. Average farm debt from 1967 to 1978 increased by 190 percent, from $32,190 to $93,655. However, this absolute increase in debt load did not result in an mcrease in the debt load-asset ratio because the total value of assets rose at a greater rate. The debt load as a percent of total value of assets was 33 per cent in 1967 and dropped to 30 percent in 1978. Labor productivity and milk sold per cow are two important factors in fluencing income. Labor productivity as measured by number of cows per man equivalent was 23 cows in 1967 and 28 cows in 1978, a 22 percent mcrease.. A better measure of labor (Turn to Page D 18) 15,25,35,45 55 and 85 KW SINGLE PHASE si 45LR1 roximate Wt. Net Lbs Ship Lbs. 425 490 475 500 580 600 670 730 730 750 795 860
Significant historical Pennsylvania newspapers