There is now, and always has been, a whole host of ways that a young fellow can get into the dairy business. Getting started isn’t too difficult it’s getting a healthy business going with enough momentum to continue to grow and prosper that’s tough. The popular press is full of success stones about how certain couples overcame great odds to succeed in dairying. They are encouraging to young reader, but almost always carry overtones of failure. Let’s assume most young people who have a true urge to start farming have served a period of apprenticeship on the farm. Now they are ready to go on their own start a new herd, cash in their own MOL-MIX/LPS GIVES YOU THE EDGE OVER OTHER LIQUID SUPPLEMENTS. if*" ** - NORTHAMPTON FARM BUREAU Tatamy, Pa. 18085 Phon© 215*258-2871 Tlje Dairy Business By Newton Bair milk check. Maybe own their own piece of Earth called a FARM. It’s a dream that every ambitious young dairyman wants to come true. The big problem isn’t knowing how to milk a cow, dnve a tractor, or plant a seed These skills must be learned first, and perfected by long practice The real toughie is money enough to start with, and how to manage it well when it starts to flow. That’s the key memorize it. Getting the money to start may not be the big problem, but in vesting it wisely and managing it properly once it starts to flow will make or break a young farmer. I’m assuming that nearly everyone is familiar with the many sources of money to finance a start in When it comes to beet and dairy cattle Mol Mix/LPS fires yon a t ro way ed(e First with quality Second with profit It s the proven liquid supplement formulated to pronde your herd with a balanced diet including our guaranteed dry matter and sugar levels which insure a high measure ol overall energy value Mol Mix/LPS also contains our special slow release' formulation and a combination of top quality ingredients that give your herd extra energy and nutrition essential lor top heel sot. dairy production Mol Mix/LPS comes to you in convenient liquid tor top dressing applying on roughage or lor use in self fed lick wheel feeders which your dealer will keep filled This fall ask your dealer lot the liquid Leader You II find Mol Mix/LPS is a sharp idea because it II sharpen up your profits And that s the edge you need farming, so we’ll skip that angle. Instead, let’s take a look at some ways to put together a package that should work. The package mcludes money, management systems, social arrangements, division of responsibility and whether to own, lease, or rent. This latter can apply to land, buildings, cows and machinery Many young people get started by working on the family farm, then gradually take over as the parents get older and decide to take it a little easy It seems like an ideal way to start, if the son is allowed to become something more than a hired hand. When a son grows into the business, a sound financial arrangement must be worked out which allows him to become an actual owner and manager. Responsibilities of partners must be established, whether a formal partnership is set up or not Partnerships can work between fnends as well as family members. An interesting example of one type of partnership was recently reported in the Holstein World. Dave Slusser made his hired man Bill Gibson a business partner in a rather unique way. Each of the 70 cows in the herd, whether owned by Dave or Bill, must pay for l/70th of the farm’s operating expenses. They use the DHIA computer accounts as a record system to split costs and profits. And they make sure that Namolco Hoi-Mix LPS hqud supplements liquid leader MARTIN'S AG SERVICE c/oJOHN Z. MARTIN New Holland RD 1 Phone 717-354-5848 Lancaster Farming, Saturday, February 21,1981—D17 every cow is paying her way or out she goes. Every young farm couple should read their story in the January 25 issue of the World. Now, what about owning land? Can a young farm couple pay $3OOO to $4OOO an acre for the privilege of fanning? The question can be answered only after a complete analysis of a whole lot of factors and figures that fit a particular situation The odds are against it, butthere are sure to be any number of ex ceptions where it will work. My conservative background requires a long, slow look before you leap. Whatever the situation is, even assuming that the land will be worth twice as much in 10 years, it must be able to support a business that will generate enough cash flow to pay all the bills, service the debt and the interest, and make a decent living for the family What about renting? Most farms that I know of renting for less than three percent of their market value. Many can be rented for two percent. $4OOO per acre land ren- Dairymen $13.46 for New York market milk NEW YORK, N.Y. - Dairy farmers supplying milk plants regulated under the New York- New Jersey marketing orders during January will be paid on the basis of a uniform price of $13.46 per hundredweight or 28.9 cents per quart Market Administrator Thomas A. Wilson also stated that the uniform farm price per hun dredweight was $13.44 in December 1980 and $12.25 in January 1980. The uniform price is a marketwide weighted average of the value of farm milk useed for fluid and manufactured dairy products The total amount of milk received from the 17,500 dairy farmers supplying the New York- New Jersey Marketing Area was 896,582,198 pounds during January 1981. This was almost 37.7 million pounds above last year. The gross value to dairy farmners for milk deliveries was $124,215,646.84 Wilson explained this included ting for |lOO an acre is fust 2.5 percent. Try to match that against buying the land at IS percent. You’ll be paying |6OO an acre per year in interest alone! High prices and high interest might make renting cows and machinery more attractive than buying them, especially for a beginner with limited means. Just make sure that your figures don’t lie when you push the pencil on the deal. There must be a working margin of profit, and a minimum of risk against loss. Young, beginning dairymen should consider sharing as much machinery as possible with a neighbor to cut overhead costs. It no longer makes sense for every farmer to own expensive har vesters, planters and a whole stable of tractors that work only part tune but require full tune payments to the bank. Pride of ownership is a great thing, but the feeling of economic stability is even greater, if the ownership is hazardous to your wealth. to receive differentials required to be paid to dairy farmers but not voluntary premiums or deductions authorized by the farmer. Regulated milk dealers utilized 403,002,833 pounds of milk for Class I, 44.9 percent of the total. Class I milk is used for fluid milk products as homogenized, flavored, low test and slum milks. For January 1981, handlers paid $14.77 per hundredweight, or 31.8 cents per quart, for the milk used in Class I products compared with $13.52 a year ago » The balance of the milk, 55.1 percent, was used to manufacture Class II products including butter, cheese, ice cream and yogurt. For this milk the handlers paid $12.67 per hundredweight The uniform price is based on milk containing 3.5 percent but terfat For January 1981, a dif ferential of 16.9 cents was applied to the price for each one-tenth of one percent that the milk tested above or below the 3.5 percent standard. All prices quoted are for bulk tank milk received within the 201- 210 mile zone from New York City. /• • \ FOR ANY FARM BUILDING • DAIRY • BEEF • HOG • MACHINERY CONTACT ROBERT McCOMSEY RD 1, Cochranville PA 19330 215-593-2157 HUS ILT QUALITY FARM BUILDINGS RAYMOND S. HURST Pine Grove PA 17963 717-345-3290
Significant historical Pennsylvania newspapers