Frustrating time » (Continued from Page Al) In an informal area sur vey, it was found that just about every agricultural real estate representative has at least one tale of frustration to relate on behalf of a client. Here are a couple of them Mark and Joan are in their late-20's. They’ve been renting a farm for several years. They’ve built up a sizable dairy herd and have the machinery necessary for their operation. Reviewing their situation, they decided it was tune to buy a farm of their own. Six months ago, they found the nght farm. It suited their present needs and provided opportunity for future ex pansion. Financing approved through Home Farmers ministration. But the owner had multiple sales agreements and decided to sell to another /**■ SUPER SPRING SAVINGS Campbell Sprayers • D • Sprayers Subject to Stock on 200 gal. 3 point Sprayer —w/Roller Plumbing —w/cent Plumbing 200 gal. Trailer Sprayer —w/Roller Plumbing —w/cent Plumbing 300 gal. Trailer Sprayer —w/Roller Plumbing —w/cent Plumbing 500 gal. Trailer Plumbing —w/cent Plumbing Your Leading Headquarters for ail your Farm & Home Supplies! Animal Health Products, Automotive Supplies & Accessories, Clothing-Footwear, Electrical Supplies, Farm Equipment, General Hardware, Lawn & Garden, Livestock Equipment & Supplies, Oil-Lubricants, Paint & Sundries, Plumbing, Hand & Power Tools. buyer, who purchased the complete package of farm, livestock and machinery. Recently, Mark and Joan found another suitable farm. But in the intervening few months, FHA money has disappeared. It’s not ex pected to be available for at least a year, and possibly even longer. They’re caught in the quandry of waiting out the FHA fiscal crunch or seeking other financing at higher interest rates. And there are no guarantees, it will be available. For the time being, the Central Pennsylvania couple will continue to rent, waiting and wondering when they can begin farming on land they can call their own. Another farm real estate representative has a customer in southeastern Pennsylvania with a slightly different predicament, but the same end result. was the Ad- John has a home ap- FARM & HOME SUPPLY ★ SALES SERVICE PARTS * Prices less tires and pump praised at $95,000 and owes $25,000 on it. Additionally, he owns two cars, 1978 and 1979 models, free of debt and is able to make a sizable cash downpayment on a small farm he’d like to buy. But bank financing has been refused, citing the lack of improvements made on the farming property. According to many in the farm real estate business, lending institutions have adopted a very selective policy regarding financing mortgages. They’ve become not only selective concerning who they will deal with, but also concerning what properties they are willing to finance. One of the keys to suc cessful purchases of agricultural property m recent months is the willingness of the owner to assist the buyer with financing. Installment sales, not only help the buyer obtain financing, but can be of tax benefit to the seller. Most real estate EMHWR EQUIPMENT, INC. lam Sale Reg. 49900 52900 569.00 589.00 699 00 719°° 759.00 789.00 789 oo 799 oo 859.00 879.00 1115 00 1229.00 representatives agree that the current tight money situation is expected to be temporary, but noone has any clear crystal ball to look into to see when an easing may begin. Later this year is the most frequently quoted forecast currently. “Take another look in October,” one spokesman said, “right before the election.” High demand for farms is expected to continue, par ticularly in dairying. “Those black and whites have paid off more farms than anything else,” one real estate representative, who has been m the business all of his life, said. Also, at least one unqualified bright spot was found in the current agricultural real estate market. It’s in a specialty segment of the overall market, out side the strict realm of production agriculture. But it gives a definite indication of the continuing basic \ %■ \ \ LAWN TRACTOR Oiled, Cased & Ready to Start ★ WE SERVICE WHAT WE SELL ★ MANY OTHER MODELS ON SALE Reg. 929.95 HERE WE ARE R.D. 1 RTE 272 SOUTH, HERRVILLE RD. WILLOW STREET, PA Phone: (717) 464-3321 :ore Hours: Mon.-Fri. 7:30 A.M.- 7:30 A.M.- 6:00 P.M. 5:00 P.M. • 11H.P. • 36” cut • 3 speed • Electric Start • Briggs & Stratton $ q2900 direction: FARM & HOI 2,3 W 30W > 1 MILE SOUTH OF WILLOW STREET Sat. IM’.c SOUTH OF WILLOW STREET Lancaster Farming, Saturday, April 5,1980—A33 soundness vestment. “Business is better than ever and has just been booming since the first of the year,” one member of the real estate community said. He specializes in finding agricultural properties, primarily horse farms, for urban professional customers solely interested in buying for investment purposes Milk support price increased to $12.06 WASHINGTON, D.C. - The support price for milk was raised from $11.22 to an estimated $12.06 per hun dredweight on April 1, Secretary of Agriculture Bob Berglandsaid. The action, announced following a meeting of the commodity Credit Cor poration board of directors, is required by the Food and Agriculture Act of 1977 That TO EM HERR VE SUPPLY ... LANCi kSTER willow streetl HERRVILLE ROAD ★ EM HERR FARM I HOME SUPPLY ■ BUCK “When money is tight, these properties become even more attractive in vestments,” he said. He pointed to the time honored, often-quoted in vestment adage. land When the savers are saving, that’s the time to buy. When the savers are buying, that’s the time to wait. law specifies that in the milk support price by adjusted to reflect any change in the parity index (index of prices paid by farmers, interest, taxes and wage rates) in the first six months of the marketing year. The support price was last set on Oct. 1, 1979, at $11.22 per hundredweight for milk of 3.5 percent milkfat. In the first five months of the marketing year the index - increased 6.5 percent and a further increase in the index is expected in March, enough to result in the in crease of approximately 85 cents in the support price for milk. The $12.06 price an nounced is an estimate and is expected to be about 79 percent of parity on April 1. The exact support price and CCC purchase prices for butter, cheese and nonfat dry milk will be announced later. The support price increase is equivalent to about eight cents per gallon of fluid milk and although market prices of the dairy products have already started to rise toward the expected new prices, the full effect of the increase will be to raise wholesale and retail prices by about nine cents per pound for butter and cheese and 4.5 cents per pound for nonfat dry milk. The price at which CCC will offer dairy products for sale for unrestricted use will continue to be 105 percent of the purchase price for these commodities. However, for September 1980 the sell-back prices will be increased to approximately the projected purchase prices to be in effect after the new support price is announced for 1980- 81 marketing year beginning October 1. There will be no change in the manufacturing margms used in calculating the purchase price for butter, cheese and nonfat dry milk. REGISTERED BELGIAN STUD SERVICE Excellent Size & quality With White Mane & Tail. (Also White face) *4o & OLMRRYVILLE Lancaster Co EDWIN REIFF PH: 717-656-6801 w/return privilege
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