010—Lancaster Farming, Saturday, June 13,1981
Crop plan
(Continued from Page 09)
• the county’s average soybean
yield is 30 bushels;
• the price guarantee chosen is
$7.00 a bushel, for which was paid a
premium of $8.50 an acre.
Now let’s assume that severe
drought reduces 1981 com yield to
20 bushels per acre and soybean
yield to 10 bushels. Payment for
the damaged com crop under the
subsidized Federal Crop Insurance
Program is calculated as follows:
1) 75 percent of the 110 bu. yield
= 82.6 bu.
2) 82.5 bu. (guarantee) - 20 bu.
(production) = 62.5 bu. loss
3) 62.5 bu. x $2.70 = $168.75/acre
4) $168.75 x 200 acres = $33,750
paymt.
Payment for the soybean
damage is determined this way:
1) 75 percent of your 30 bu. yield
= 22.50 bu.
2) 22.5 bu. (guarantee) - 10 bu.
(production) = 12.50 bu. loss
3) 12.5 bu. x 57.00 = $87.50/acre
4) $87.50 x 100 acres = $8,750
paymt.
Under the subsidized Crop In
surance Program, the fanner
would receive a total of $42,500 for
two damaged crops.
The subsidized premiums were
$9.90 an acre for corn and $8.50 an
acre for soybeans. Therefore, he
paid $2,830 m premium costs and
received a net benefit of $39,670.
Other options
The relationship between any
insurance benefit and the premium
cost depends, of course, upon how
Introducing The ALL NEW
HONEY BROOK
NATURAL
20
ENERGI BLOCK
For Dairy And Beef Cattle
Net Wt. SO Lbs
GUARANTEED ANALYSIS
Crude Protein, Minimum
Crude Fiber, Maximum
Crude Fat, Minimum
Calcium, Maximum
Calcium, Minimum
Phosphorus, Minimum
Salt
Vitamin A
Vitamin D
Vitamin E
Sugar as Invert
20 percent
5 percent
1 percent
2 5 percent
1 5 percent
2 percent
None
25,000 USP per LB
5,000 USP per LB
10IU per LB
40 percent
FOR ADDITIONAL INFORMATION
CALL US.
t"®.
d=* -g
severe the loss is *he level of
protection chosen. Insured far
mers who suffer no losses and
thereby reap no benefits must still
bear the premium cost out of cash
receipts.
This is a management decision
each farmer must make based on
individual financial situations.
Keep in mind that the premium
payments are a tax-deductible
business expense that lowers the
cost of insurance protection.
If, in the previous example
above, the farmer had decided
against insurance, but had par
ticipated m the 1981 feed gram
program, he would have received a
disaster payment from the com
crop. Soybeans, aren’t a target
price crop and therefore aren’t
eligible for disaster payments.
Let’s see how the farmer would
fare under the low yield disaster
program, without insurance.
Assuming a target pace of $2,40 a
bushel and the same yield
reduction as above, he’d be eligible
for payments calculated as
follows:
1) 60 percent of 110 = 66 bu. (only
production below 60 percent of
normal yield is eligible)
2) 1/2 the target price =
$1.20/bu. (the payment rate equals
1/2 the target price)
3) 66 bu. (eligible) - 20 bu.
(production) = 46 bu. loss
4) 46 bu. x 51.20 = $55.20/acre
5) $55.20 x 200 acres = $11,040
paymt
Fanners who want to avoid risk
as much as possible can choose to
pay the higher, nonsubsidized crop
insurance premium and received
the combmed protection in 1981.
INGREDIENTS Beet Molasses.
Soybean Meal, Phosphoric Acid,
Calcium Oxide, Zinc Sulfate, Ferrous
Sulfate, Manganese Sulfate, Copper
Sulfate, Ethylenediamme
Dihydroiodide (source of iodine), Cobalt
Sulfate, Vitamin A Palmitate, Vitamin D
Supplement, Vitamin E Supplement,
Soy Oil
Contains NO
UREA-All
Natural Protein
Remember...
ENERGIBLOCK con
tains no salt and is
not affected by the
weather.
ZOOK MOLASSES CO.
WEST MAIN ST., BOX 160
HONEY BROOK, PA. 19344
Phone 215-273-3776
or 717-393-3987
Call toll free m area code 215 & 7X7
Assuming the same corn and
soybean acreage and coverage as
above, premium charges would be
$3,370, up $540 from the subsidized
premium costs. But the combined
potential returns from insurance
and disaster payments-assuming
the same damage-would rise
substantially:
$42,500 + $11,040 = $53,540
In this example, participating in
the feed grain program and paying
the additional corn premiums
increased total payments by
$ll,OOO. The actual result would
depend on the level of coverage
selected and the extent of any loss
that crops may sustain from
dought, wind, hail, disease, or
other natural disaster.
Advantages of Program
Under the new program, there
will be one straightforward system
for everyone. Previously, a vast
array of programs sprung up
wherever farmers suffered losses.
Premium rates will be set by the
FCIC, based on the potential risk of
crop loss in each area. This should
encourage farmers to plant crops
that are better suited to their
particular area.
The expanded protection will
serve farmers’ financial needs by
helping ensure cash flow stability.
• This will make it easier to
obtain and pay loans, especially
for those producers who don’t have
a big capital reserve.
• Forward contracts will also be
more secure with insurance to
guarantee funds for meeting the
contract.
The amount of insurance that’s
nght will probably depend on these
same cash flow needs. Insurance
Maybe ills time you
switched fertilizer tanks
Switch to a Calumet
Liquid Manure Spreader
Compared to today's
and tomorrow's sky-high
fertilizer prices, manure is
lust too valuable to waste
A hundred cow dairy herd,
for example, can save
thousands of dollars every
year in fertilizer costs
Take full advantage
of this liquid gold with a
Calumet liquid manure
spreader teamed with a
4-shank soil miector
Injecting can help retain
.four times the nitrogen
that's usually lost with
. surface spreading —in
addition to reducing odor
and run-off problems
‘Sg|&* F. ERNEST SNOOK
RD 3 - Box 84, Mifflinburg, Pa. 17844 - Phone: 717-966-2736
Md. farm visits
on June 28
COLLEGE PARK, Md. - It’s
'time again for urban youngsters to
cuddle a calf or love a lamb, as 24
“Welcome Farms” in nine
Maryland counties prepare for the
fifteenth annual Farm Visitation
Day on June 28.
This year’s host farms are
scattered from the mountains of
western Maryland to the flatlands
of the Eastern Shore, reports Roy
D. Porter, Extension coordinator
of special communications, at the
University of Maryland.
Barring rainy weather, Porter
expects more than 25,000
youngsters and adults to turn out
for the traditional fourth-Sunday
in-June event. Open house hours
are 1 to 5 p.m.; but visitors are
welcome to stay later to watch
milking operations at participating
dairy farms, including a dairy goat
farm in . southern Maryland’s
Calvert county.
New features of this year’s
Farm Visitation Day will be a crop
farm m Charles county where
greenhouse tomatoes are grown
commercially without soil and a
dairy farm in Talbot county where
cows are milked on a continuous
basis, 24 hours per day.
Intended to give urban families a
agents can help choose a protec
tion plan. But finally, each farm
operator knows the level of
protection that feels most com
fortable.
Calumet spreaders, in
capacities from 1625 to
4500 gallons, are engineered
for efficiency and longevity
Heavy duty steel alloy tanks
are coated with epoxy to
resist corrosion. Double
reinforced A-frames and
support skids add strength
for heavy loads' All Calumet
liquid spreaders are backed
by a 12-month warranty
close look at their rural neighbors,
Farm Visitation Day is sponsored
each year by the University of
Maryland’s Cooperative Extension
Service in cooperation with major
farm organizations in the state.
Local committees have been
active in most of the nine par
ticipating counties, planning
details for hosting the event at
each designated farm. Many of the
host farms' will offer light
refreshments, free of charge, with
cold milk a likely prospect at
participating dairy farms.
Directions to all participating
farms are listed in a free Farm
Visitation Day brochure, titled “A
Family Affair” (Leaflet 86). The
leaflet will be available by mid-
June from offices of the
Cooperative Extension Service and
public libraries in the participating
counties Anne Arundel,
Baltimore, Calvert, Charles,
Frederick, Harford, Montgomery,
Talbot and Washington.
- They will also be distributed at
all three offices of the University of,
Maryland’s Cooperative Extension
Service in Baltijnore City.
, '&:> % jis? f>
-, -•/-;o‘V4>3»%.
!
Make the best use of
The fertilizer produced on
your farm with a Calumet
liquid spreader and soil
injector
Call for information
on the value of manure—
and some good reasons
why you should switch
fertilizer tanks
Look For
The Right AA
One! x 2/
The Calumet Co., Inc.
USED EQUIPMENT—
-1 - Clay V 2250
1 • Better-Bilt 12 Ft. Auger Pit
Pump
1 - Calumet 10 Ft. Pit Pump
1 - 53250 Calumet Spreader
w/Auger