PATTERSON SEED SERVICE
Stanford Seed Co. - Northrop King Seeds
We Are Now Taking Orders ~
For The Following:
Barley
• Pennrad
• Henry
• Barsoy
• Maury
We Also Have
• Vetch • Timothy
• Alfalfa • Pasture
• Clover Mixes
• Rye
Get your order in early so you can be assured of
varieties you need. You can pickup or we'll
deliver when you're ready to plant.
Call Collect - 302-239-3233
>
Whe
• Hart
• Redcoat
• Abe
• Arthur
• Potomac
• 'PennolK
• Logan
GRAIN BINS
& ACCESSORIES
A.S.C.S. Approved Dealers and
Grain Bins
Aeration Fans & Heaters
Transport Augers Available - PTO
or Motor
All Types of Gen. Purpose Augers
Capacities from 1350 Bu. to
301,940 Bu. -15’ to 90’ Diam.
Many Other Options For Complete
Grain Handling, Drying, And Storage!
See Your Nearest Dealer For
Complete Information...
BETTS EQUIPMENT COLUMBIA EQUIP. CO.
New Hope, PA Bloomsburg, PA
215-598-7501 717-784-7456
BIG VALLEY SALES
& SERVICE INC.
PO Box 548, Reedsvilie, PA
717-667-3944
CANYON IMPLEMENTS,INC.
RDl r ßt. 6
Mansfield, PA
717-724-2731
CLAPPER FARM EQUIP.
RDI, Alexandria, PA
814-669-9015
Farm income
(Continued from Page C 32) machinery.
, . . „ Farm asset values tripled
farm sector, and unem, durin 1970 - reac Lg
ployment. has increased m aroUl f d m billio ; 6 t
manymdustnes. January . Three-fourths of
A farmer s wealth is vabie rea j estate,
another important factor value have
probably slowed up this year
™ mcome figures. Assets wblle farm debt j^gjy
anddebtsproyideameasure grownatafasterr ate
of the financial position -
and security - of producers.
' In recent years, capital
gains on farm assets have
far outdistanced farm in
come in adding to the real
weath of farmers. Although
these gains don’t pay the
bills directly, the additional
equity often becomes the
collateral for credit to meet
current production ex
penses, to finance farm
expansion, and to invest in
new equipment and
DILTS FARM feQUP.
RT #2, Marion Center, PA
412-286-9606
FARMERS EQUIPMENT
EXCHANGE, INC.
East Petersburg, PA
717-569-8756
GUS FARM EQUIP.
RT 616 Box 85, Seven Valleys, PA
717-428-1967
Again, however, situations
differ considerably among
producers. In 1978, about a
third of all farm assets were
controlled by six percent of
the farms with annual gross
sales of $lOO,OOO and over.
The bottom third of all farms
in terms of sales controlled
only 12 percent of total
assets.
On the other hand, larger
farms tend to have higher
GRUMELLi FARM SERVICE MAIDENCREEK FARM
RD #2, Box 36, Quarryville, PA SUPPLY
717-786-7318 Blandon, PA
215-926-3851
ROBERT G. HAMPTON INC.
Route 49. PO Box 109, Shiloh, NJ
609-451-9520
I.G. SALES
Silverdale, PA
215-257-5136
LEISER’S INC.
3608 Nazareth Pike
Bethlehem, PA
215-691-3070
Lancaster Farming, Saturday, September 27,1980—€33
debts in relation to then 1
assets.
Debts were less than 10
percent of all assets for
small farms in 1978’ but over
20 percent of assets for large
farms - those with sales of
$lOO,OOO and over. Also,
larger producers are less
likely to hve off-farm income
coming in. So even small
changes in farm prices and
income can give large
operators cash flow
problems, though assets
may provide financial
security over the long run.
The effect of reduced cash
flow also depends on the
tenure of the farm operator.
A well-established farmer,
who bought when land prices
and credit rates were lower,
can better handle a debt load
in lean times; this farmer
REED BROTHERS EQUIP.
Petticoat Bridge Rd., Columbus, NJ
609-298-3441
ROORKSFARM
SUPPLYING.
RD3, Hwy No 77, Elmer, NJ
609-358-3100
WENGER’S, INC.
S. Race St, Myerstown, PA
717-866-2138
can get credit more easily to
cover increased production
expenses. But a newer
fanner who bought land at
higher prices and higher
interest rates, has a high
debt-equity ratio.
It’s harder for this farmer
to get additional credit for
production inputs, and there
may be more cash flow
problems.
Considering all the
variables, among those
hardest hit this year have
been new entrants into
soybeans, hogs, or poultry
who use a high proportion of
purchased inputs
especially if they don’t own
their land and don’t have
outside income. Farmers
who raise com, wheat,
cotton, or tobacco have been
relatively better off,
especially if they are well
established producers with a
large equity base.
Is the 1980 drop in farm
income a short-term
problem, or is another
decline next year just as
likely?
“The sharp decline of 1980
appears to be an aberration
in a trend, and it seems even
worse because it tumbled
from the relatively high net
income of last year,” Hoff
man says.
“A lot of unusual cir
cumstances led to this year’s
situation. Last year’s har
vests resulted in records for
six out of the 10 major crops -
- com, wheat, soybeans,
cotton, barley,-and sorghum
- an accomplishment un
matched since 1958. The
bumper crops tended to keep
this year’s price increases
modest.”
In the long run, net farm
imcome has been trending
up. Moreover, each year
there have been fewer
farmers sharing the total. In
this context, the drop in both
per-farm and total net farm
income in 1980 is clearly an
exception.
Current prospects, though
highly uncertain, suggest an
improvement in net farm
mcome in 1981.
Total meat production
should be down from this
year’s record levels, and
pnces should be higher.
Smaller crops and tighter
grain and oilseed supplies
could sharply boost farm
prices. U.S. exports should
continue strong, at least
matching and probably
exceeding this year’s record
value. Some recovery in the
general economy could
stiirißlate domestic demand
for red meats.
However, farmers’
5 production costs will keep
rising, led by energy inputs.
Land pnces will also in
crease.
Interest rates will depend
on the underlying inflation
rate in the general economy,
which may remain
relatively high for the next
several years.
a*.
;:l GEBHARTS |
? SANDBLASTING I
.: : : & RESTORATION |
INC
- Box 109 AA, RD.I
Abbottstown, Pa. 17301 A
| 717-259-9868
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