B4—Lancaster Farming, Saturday, November 1,1980
KENNETT SQUARE -
Where would you go for
information on farming if
you were just getting into the
profession 7 For starters,
you might want to follow in
the footsteps of close to 100
other individuals and par
ticipate in the Short Course
for New Farmers.
Despite the rain that
threatened to dampen the
enthusiasm of the eager
crowd, the auditorium was
filled to over-flowing here at
the New Bolton Center on
Saturday.
Working as a team to get
useful information out to
people interested in starting
to farm, the University of
Pennsylvania's School of
Veterinary Medicine and
Penn State’s Cooperative
Extension Service staffers
brought the new fanners up
to-date on how much money
it takes to get into farming,
the in’s and out’s of animal
and plant production, and
the services of local
veterinanans.
Virgil Crowley, professor
of farm management ex
tension from Penn State, told
the group of new farmers
that current incomes and
investments in farming in
the U.S. -based on 1979
figures reflect a net income
of 31 billion. The 1900
estimates, however, have
been projected to be between
23-25 billion, a reduction of 20
to 25 percent, he pointed out.
Not very encouraging
news for the new fanners.
Crowley went on to tell
them the amount of
disposable income from all
sources for each farmer was
below that of the nonfarm
sector. In 1978, the per capita
disposable farm mcome was
90.6 percent of the nonfarm
income in the U.S.
Bringing his topic a bit
closer home, Crowley told
the group that the average
net income per farm in
Pennsylvania was 19713 in
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New farmers learn how to get started
1978. However, he quickly
pointed out the number of
farms in the state has
dropped by 45,000 in just
eight years.
With all the statistics
pointing against fanning,
how would someone just
getting into the field ever get
started and why would
they want to 7
Crowley then took several
fanning enterprises and
looked at the investment it
would take in order to make
$lO,OOO a year.
He pointed out the
preliminary 1979 Pa. Dairy
Farm Business Summary
indicated an average net
farm income of $9680 for
dairy farms with 20 to 29
cows. The average total
assets of these farms was
$183,616 per farm and total
cash receipts per farm
averaged $48,092 and cash
expenses were $32,794.
These figures were based
on situations where the
average labor required 1.4
man equivalents and the
return on investment was 2.8
percent. The labor and
management income was .71
cents per hour and the
operators had 80 percent
equity in their farm
average interest paid was
just over $2500 each year.
If the new farmer wasn’t
quite ready to tackle the life
of a dairy farmer, Crowley
went over what it would take
to get set up in a beef
operation.
He cited a recent study
that said an investment of
over 851,000 was needed to
have 32 beef cows and that
doesn’t include the land
investment. These 32 cows
could generate an income of
$3761, so in order to make
810,000 a year, a beef cow
herd of close to 100 cows
would be needed.
Now, just in cows alone,
the new fanner finds the
investment required is
around $140,000, without the
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land. Then adding the cost of
land to run the cattle on
would be an additional
$200,000 based on each cow'
needing 2-3 acres of land
Summing the costs, Crowley
came up with a grand total
that made most of the
audience’s heads spin.
For those who were
chickening out of the dairy
and beef business, Crowley
pointed out the estimated
investment needed to get
full-swing into the poultry
industry. The building alone,
he said, would run around
$150,000 for 50,000 square
foot of space for a broiler
house. The necessary
equipment to go along with
the building would run
anothersloo,ooo.
Crowley analyzed the
potential income from the
poultry operation and came
up with a wide range in
potential income from 0 to
a high of $15,000 depending
on the owner’s efficiency and
Equity.
“Thus, if one looks at this
as an alternative for
beginning farmers, it may
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not be satisfactory unless the
beginning farmer has a
stong capital position,’’
Crowley concluded.
For those daring new
farmers who were thinking
about swine production,
Crowley did have an en
couraging word. He said one
advantage to raising swine is
it is the type of enterprise
that doesn’t take as much
land but there should be
enough to dispose of the
manure.
In order to set up a
farrowing and finishing
operation where hogs would
be raised to marketing
weights of 210-240 pounds,
Crowley said a new farmer
would need anywhere from
$l5OO to $2500, excluding the
cost of land.
Estimating a net farm
income per sow each year
based on current feed and
market hog prices and
hoping to raise 8 pigs per
litter with each sow
farrowing 2 Utters per year,
the swine producer might
hope for an income of $4BO to
$560. So, it would take 20 to 24
sows to net $lO,OOO.
“It is important to point
out,” said Crowley, “that in
March this year, the net
farm income per sow from
this enterprise would have
been 0. The income from a
swine enterprise is often
subject to wide fluctuations
as feed and product prices
change.”
Some general rules for
new fanners that Crowley
shared with the group were:
—total farm sales is a
factor of volume of product
produced and sold multiplied
by the price;
—net farm income will
range from 19 to 35 percent
of gross sales, influenced by
the type of enterprise and
prices;
—large net incomes
require large sales;
—net income among farms
that are similar in type and
size is affected more by the
management ability of the
farm operator than any
other single factor.
Crowley told the group it is
still possible to start farming
with limited capital,
however it is becoming in
creasingly difficult. He
reviewed the various areas
where loans could be ob
tained, such as commercial
banks, Farm Credit system,
FmHA, insurance com
panies, and individuals.
In conclusion Crowley
stated, “Farming is, and will
continue to be a dynamic
business that offers op
portumtes for both success
and failure. Success requires
records, planning and
seeking the best in
formation. Hard work can
compensate for many
mistakes, but it by itself is
not enough for success.”
Raymond Shipp, associate
professor of agronoiny
extension at Penn Sta f
informed the new farmers
that 90 percent of the topsoil
in the state is of the most
desirable kind silt loam or
loam. He told them this type
of soil has just the right mix
of sand, silt and clay to
provide the best textured soil
for crop production.
(Turn to Page B 5)