Leasing or cash payment can cut equipment
LANCASTER - Record
interest rates are changing
the way farmers are buying
tractors and combines.
Many now prefer to lease
or shell out straight cash
register than pay 14 percent
to 17 percent interest or
higher.
As a result, farm
machinery manufacturers
are seeing an upswing in
f “GEE, EVEN FORD TRACTORS HEED A LITTIE
i ATTENTION NOW AND THEN” ♦
♦
♦w Dont wait tin v%
|last minute )
GET YOUR
♦ *
♦
I TRACTOR READY
1 FOR SPRING
INOW
ALLEN H. MATZ, INC.
505 E. Main St., New Holland
Ph: 717-354-2214
SERVING THE COMMUNITY
THIRTY-ONE YEARS
LANC. CO. OLDEST FORD DEALER
Save More Than
L Half Your Seed j
MORE SEED GERMINATES
. YOU GET A POSITIVE CATCH
With a Bnllion Sure Stand agricultural seeder
you sow all seed within the top Vz inch ot the
soil uniformly, accurately in a firm
well worked seedbed where moisture comes
up from below and the seed is close to plant
nutrients In this way every seed has a
chance to grow You can predict good stands
of grasses and legumes with seeding rates
often cut to nearly half of the rates previously
used In many cases, the savings in seed
alone will pay for a Sure Stand seeder with
just a few days’ usage
Don’t risk another crop failure Don’t settle
for half a stand Depend on the Bnllion to
produce a “Sure Stand' time after time
AVAILABLE IN 5,8, 10 and 12 FOOT SIZES.
FARMERSVIUE EQUIPMENT
RD4, Ephrata, PA 717-354-4271
Hours: Mon., Tues., Wed., Fri. - 7:30 to 5:30
Thurs. till 9:00; Sat. till 3:00
their leasing business. “Our
leasing volume has almost
tripled over this time last
year,” says E.W.
Muehlhausen, vice
president, marketing for
Steiger Tractor, Inc.
Fanners with high in
comes find their greatest ad
vantage m leasing, explains
Richard Duvick, extension
INC.
economist at Ohio State
Umversity.
“Leasing offers par
ticularly sigmfcant tax ad
vantages to those farmers m
the 40 percent to 50 percent
tax brackets,” Duvick says.
“But you don’t necessarily
have to be in those higher tax
brackets to benefit from the
tax advantages of leasing,
depending on the terms of
the lease.”
Even though the annual
payment for the lease might
be greater than an annual
loan payment for the same
eqmpment, a lease makes
good business sense for these
farmers. This is because the
entire lease payment can be
deducted from taxable in
come, while only the interest
expense can be deducted for
a loan.
And as the cost of borrow
ing increases, leasing looks
even more attractive to
\M-I Old Guard
KjoafifflaQ €®E)[poDD^
"Friend of Farmers since 1896 "
Ask about our FARMOWNER'S policy It is
designed to .give you the very broadest
coverage at the most reasonable cost We
believe it is the finest policy you can buy See
our agent in your area
CHARLES H. HARBOLD
Codorus Pa
GEORGE E. HOAR INSURANCE AGENCY
RD 12 Gap Pa
C. A. S. HOLLINGER
30 Foreman Road Elizabethtown Pa
ALLEN B. CHUBB
Lykens Pa
the
price
Ju #
is right
...right now!
Early-order discounts now in
effect 1 Order now ■ take delivery
later get big savings on all your
“Stor-Age” and drying needs
Major steel corporations have
increased their prices recently
which will be reflected in future
prices See your nearest mfs
dealer for big savings that are
yours by buying now'
these fanners The fellows
who took the lease two years
ago are sure smiling today.
They’ve got seven-year
leases with payments
figured at 11.5 percent and
that looks pretty nice to
them.
Muehlhausen summarizes
these advantages to leasing-
Alternative source of
funds; When money is tight,
leasing allows a farmer to
acquire equipment without
borrowing. This leaves his
other credit lines open.
Tax savings: All lease
payments can be deducted
from taxable income. Some
leases qualify for investment
tax credit, as well.
Better cash management;
Payments are fixed for the
life of the lease, which allows
for better cash flow projec
tions. Some loans have fluc
tuating interest rates, on the
other hand, so payments in-
ERNON MYERS, INC.
STEEL BUILDINGS &
GRAIN STORAGE
R.D. 4 - Box 845
Lebanon, Pa. 17042
Phone; (717)867-4139
A\
AVCSCO
Lancaster Farming, Saturday, March 29,1980—€37
crease with the interest
rates.
Ability to purchase
machine at lease’s end; With
most leases, when the lease
concludes, a farmer has the
option to buy the equipment.
Most farmers do.
And because of inflation,
leasing offers a considerable
Daugherty
Hast outpost of warmth 9
DOVER, Del. - In a
meeting held recently here
at the Capital Grange Hall,
Hope Daugherty, told
Delaware 4-H leaders that 4-
H has been called “the last
outpost of warmth in a
society where everyone
seems to be out for himself.”
Daugherty, from SEA/4-H
Youth Development, told the
audience of 100 volunteer
leaders from around the
state that they, along with
parents and teachers, “were
put on Earth to help young
people and to try to prevent
them from making
irrevocable mistakes.”
Leaders are able to do this,
she said, by listening,
communicating, sharing
concerns, teaching, and
caring about their young
charges.
Daugherty also spoke
about the age-old problem of
nutrition of older members
of the 4-H organization,
which serves youth of ages 9-
19. Teens often tell us they
quit 4-H because they are too
busy with school work and
extracurricular activities,
she said. But a recent survey
- BARN PAINTING
v Call Us Now
> For Free
Estimates
: PHARESS. HURST }
■* \ ?
RD 1, Box 420 J
Narvon, Pa 17555 i
215-445-6186 \
IT .
We Offer Complete Erection On Any Size Or Style Building.
g Hiail Coupon Today!
■ □ SEND STEEL BUILDINGS LITERATURE
g □ SEND GRAIN STORAGE LITERATURE
® NAME
J ADDRESS
| CITY
| TELEPHONE ■
immmmmmmmmmummmm -1
costs
advantage over purchasing
with cash, Muehlhausen
says.
“Because leases are
spread out over a number of
years, just like a loan, a
farmer pays for the use of to
day’s modem equipment
with tomorrow’s inflated
dollars,” he says.
terms 9 4-H
proved that the most active
4-H members, those involved
m two more more project
areas, are the ones that
generally remain in the
organization throughout
high school. Furthermore,
those teenageps who are
most involved with 4-H,
Scouts, or other organized
youth activities, are also
more involved than other
young people in after-school
activities such as sports,
music, and the high school
yearbook committee. This
proves, she said, that out
standing teenagers find the
time to accomplish many
things.
Silver Spurs
4-H elects
officers
LANCASTER - The
Silver Spurs 4-H Horse and
Pony Club held a meeting
recently at the home of April
Poyck, 1224 Hunsicker Road.
Election of officers was
held for 1980. Those elected
were: Amy Rockwell,
president; Jef Hobman, vice
president; Deraka Gum,
secretary; Randy Ghck,
semor treasurer; and Curt
Huber, junior treasurer.
The next meeting will be
held at Jeff Hobman’s home
on Fnday April 11 at 7:30
p.m.
~-X
STATE.
ZIP.