E4o—Lancaster Farming, Saturday, January 9,1982 Why do some farms fare better? WASHINGTON, D.C. - Tenure and equity seem almost as im portant as commodity prices in explaining why some farms regularly fare better than others, reports USDA Economic Research Service. In the case of tenure, for example, owner-operated farms often have a big advantage over partly-owned or tenant-run farms because of the owner’s potential for capital gains on landownership. The operator’s equity position is another key factor. Obviously, farms where the operators own the land and equimerit debt free generally fare better than farms where the operator must make annual interest and principle payments on debts. The financial strength of farms is based on their ability to generate farm cash receipts (cash flow) to meet all farm expenses, provide an adequate allowance for family living, and set aside a depreciation fund to replace farm machinery and equipment. Farmers who cannot meet these cash flow needs will be unable to continue operating in the long run and will eventually have to forsake farming or supplement their farm income with outside employment. Cash flow is more important now than in earlier times because farmers rely more on purchased inputs (seed, fertilizer pesticides). As a result, today’s farmers may be less able to endure periods of depressed prices and low cash flow than their predecessors. While many variables affect a farm’s cash flow each year. j SPECIAL S ISO OFF S L ”'i THIS IS NO J ORDINARY ■ STOVE... « ...This is the classic coal f burning Surdiac® ... the ! best heating appliance you * can buy. ■ □ Maximum efficiency (up to ■ 90%) ■ □ Constructed of the finest I quality cast iron alloys. g □ Minimal care & maintenance m ... light just once a year. 5 □ Unmatched heating capacity ■ ... up to 17,600 cubic feet. I AUTHORIZED DEALER ELMR L STOLIZFUS 171 Quarry Road Leola, Pa. 17540 717-656-9041 several generalizations can be made about the role of tenure and equity. USDA analysts recently classified the different tenure equity combinations in order of greatest to least financial strength. In the best financial condition are full owners with 100-percent equity. They are usually long established farmers who own all their land free of debt and all their machinery and livestock. Also financially sound are part owners with about 67-percent equity. They rent half the land they farm, but have debts equal to only a third of the value of their owned assets—the other half of the land and all their machinery and livestock. Likewise in good shape are tenants with 50-percent equity. They rent all the land they operate but own all their machinery and livestock with 50-percent in debtedness. In rather weak financial con dition are full owners with 50- percent equity. They represent farmers who have recently ex panded or are ' expanding aggressively. They own all their land equipment and livestock, but have outstanding debts eoual to half the total value of the farm. Their vulnerability is due to the large and stable cash flow they need to meet their debt repayments. In the weakest financial shape are tenants with 25-percent equity. They are usually beginning far mers who rent all the land they operate and have debts that amount to three-fourths of the A LESSON WELL LEARNED... Lancaster Farming’s CLASSIFIED ADS GET RESULTS! Phone; 7X7-394-3047 0r717-626-X164 Sale Reports A public sale of real estate and antiques was held on Jan. 1 for Warren and Cleo Boyer, between Lenhartsville and VirginviUe, Berks Co. There were 321 registered buyers present at the sale. The ISftnacre dairy farm with 117 acres tillable, 8 acres woodland and 20 acres of meadow also included a large bank barn, cement silo, 6-bay garage, storage shed and 2% story stone & frame house. The property was sold for |255,000. Other prices were: jelly cupboard $390, balloon-back rocker $2OO, wood chest $l4O, flat-top trunk $lO5, butcher kettles $87.50 & $l4O, rope bed $350, checkerboard $77.50, value of their livestock and machinery. Using computerized simulations of 100 different crop and livestock farms, analysts compared their financial prospects based on these five tenure-equity combinations. Seventy of the farms were able to generate enough cash to cover all cash flow needs. Of the other 30, only one was a full owner with 100- percent equity. Six were part owners with 67-percent equity, 10 were full owners with 50-percent equity, 6 were tenants with 50- percent equity and 7 were tenants with 25-percent equity. Bakercrest Complete Dispersal Located just off Rt. 569 - 3 miles from Roseville. Pa.. 10 miles from MansfieNfc 10 from Troy and 18 from Elmira, N.Y, Watch for auction arrows. SATURDAY, JANUARY 23 at 10:30 Sharp 75-Holstein Cattle-75 Interstate Tested 62 mature cows, 10 bred hfrs., 4 started Mr. calves, 40 cows fresh or will be fresh in the next 45 days, balance in all stages of lactation. In terstate tested,, preg. ex., shot for shipping fever, charts day of sale. Ford 5000 diesel tractor w/wide front & chains; MD Farmall w/hyd. & blade; New Idea #272 cutditioner; NH 273 baler w/kicker; Papec chopper w/1 row corn & pickup heads; New Idea self-unloading box & running gear ’ w/flotation tires; Lamco self-unloading box & running gear w/flotation tires; 3 hay wagons w/kicker racks;„ Ford #1404 bottom semi mounted plows; New Idea 40 ft. elev. w/PTO & elec, motor; New Idea 3 pt. fertilizer sower; Hustler- #56 fill rite hopper blower (like new); NH 56 side rake; Papec hopper blower; JD 12404 row com planter; 3D‘barrel spreader; NH barrel Ontario 13 disc grain drill, JD IS disc grain jdrill (old); Woods Cadet 72 rotary mower; Walsh transport weed sprayer w/200 gal. plastic tank; Niagara 15000 watt alternator on trailer; harrows; farm trailer; hay feeder; land roller; & a few other small items. Sale Mgr. Note: Due to other business interest, the Bakers have decided to discontinue their farming operation. As noted, a large number of cows are fresh or close, machinery in good repair several pieces like new. Selling order ✓ machinery 10:30 sharp, cattle approx. 12:00 noon. See you Jan. 23. 1 Approx. 85 to 100 ton high moisture corn in Harvestore; 30 ton good mixed hay; quantity corn-silage in trench. Terms - Cash or Good check. Sale under cover. Lunch available. Owners DONALD & BARBARA BAKER Auctioneer-Ariow Kiehl Sales Mgr. Gordon Wood, Mansfield, Pa. Phone 717-549-4901 For the most in advertising coverage and preparing your sale. Call Woods Auction Service. 717-549-4901 Remington 22 model 12 dump rifle $240 and potato plow $B5. Auctioneer was Dennis F. Wagner. A New Years Day Sale was held on Jan. 1 at Potties Auction, located midway bet ween Carlisle and Shippensburg on U.S. 11. Some of the prices included: cook stove $4OO, rolling pin $35, walnut china closet $250, copper kettle $320, 2 pc. walnut Dutch cupboard $540, Victorian hall rack $4OO, oak hall rack $325, ox yoke $l5 and French oriental-type rug-$5OO. Card Bur mss was the auctioneer. A public sale of real estate and househdd goods was held Jan. 2 Machinery Produce for the William Moyer Estate in the village of Reinholds on Main Street, Lane. Co. The 2%-story frame dwelling with vinyl siding, oil hot water heat and water hook-up was sold f0r125,000. Two other items of interest were the 2 pc. comer cupboard which sold for $l2OO and 2 glass chandeliers for $240. Frank & Paul Snyder were the auctioneers. A public sale of farm equipment and con struction tools was held Dec: 29 by Paul and Verna Sauder east of Terre Hill on Spring Hollow Rd., Lane. Co. There was a large crowd attending the sale with 324 registered buyers. Some prices received were: Gehl 95 grinder mixer $1,500,' J.D. 43 com sheller with P.T.O. $475, Int. T.D. 6 crawler tractor $2,650,' P.T.O. shaft for Int. $475, hay rake $l4O, J.D.KBA disc $790, portable Sy* H.P. KEITH DAWSON DAIRY HERD AND FARMMACHINERY AUCTION SALE WAPWOLLOPEN RD #2, HOLLEN BACK TWP., LUZERNE COUNTY. The following personal property will be sold at the Bryce Conklin Farm, located 7 mi. west of the Dorrance Exit of in terstate 81 and 1 14 mi. east of the Susquehanna River and the Berwick Nuclear Power Plant on Route 11, the farm is located on the Wapwollopen to Hobbie Road, 2 miles from Wapwollopen on ." : ‘ SATURDAY, JANUARY 16 10:30 PM. ' 28 Registered & Hi-Grade Holsteins are registered & 28 grades including Chateau- ' Ridge Elevation Jill- VG-8S dau. of Elevation . EX-GM, a stylish cow due in late Feb., to a son of Hill-Haven Stand Out Job from an EX-91 , Point dau., of Astronaut with several records over 20,000 M & 700 F. Her full sister also Ex. f Chateau Ridge Elevation Orca, dau. ■of Elevation fresh 2 mo. will come 4 yrs. old in March.'"- Mun-Cre Kingpin Larissa, 4 yrs., fresh 2 months a dau. of Kingpin GM, her VG 87 dam has a 4 yr. record of 20,860 m. 4.3% 903 F, Gr- Oam VG with 17,620 M 705 F, Larissa was bred in the famous Lester Poust herd at Muncy, Pa. & was one~of the top selling calves in the state calf sale a number of top grades including Briquette due in Feb. with 2 yr. 5 mb. 350 da, 20,948 M. 4.2% 884 F. Jan, due early Feb., with 16,580 M. 595 F. Minnie with 17,292 M. 653 F. duel in July. This offering includes 26 milking sgaA - bred heifer due ihMay & 1 open yearling 9 freifef' in last 2% months, 7 due in Feb., 3in May balance all stages injected for shipping fever, 30 day TB & blood test interstate charts day of sale. John Deere 3020 gas narrow front tractor, recent motor overhaul & decent rubber, New Idea 165 BU single beater manure spreader new in the spring of 81, Gehl 95 MX grinder mixer with 21” mill good shape, hay & grain elevator, 1973 F-100 Ford pickup, fair shape, 1966 Int. Loadstar long wheel base flat bed truck with dump hoist & two setsbf ,packs a real good.sawdust or grain truck, DeLaval 6 unit milker pump & magnetic control box, 2 DeLaval magnetic units. Terms: Cash or approved checks, FHA checks also honored, tent. Wayne E. Weaver, Auctioneer & Sales Manager RO M 2 Tunkhannock, Penna. Phone 333-4194 Watch for an ad on Eve Truesdell Complete Dispersal on Sat., Jan. -23rd at Noxen, Pa. Wyoming Co. Top Bred Ayrshlres & Holsteins & all machinery. Fred Kropa Dispersal on Sat., Jan. 30 at Hop Bottom PA., Susquehanna Co. 61 big strong high producing Holsteins. air compressor $3OO and ..Rockwell 3’ wood ‘copying lathe $950. Auctioneers were Nevin Z. .Martin and Lewis R. Groff.' six -The Auction held an Antique i .and Collectible Auction' onJan. 1. The sale was held in Farmersville, 3 - mile east of Brown stown, Lane. Co. Some prices included: Sellars utility cabinet $lOO, Empire bureaus $lOO- and $l6O, mahogany secretary desk $l2O, oak dresser $135, round and square oak extension tables sf4o & $l5O, oak showcase $ll5, child’s fainting couch $125, child’s roll top desk\s6s, oak washstand $9O, 2 B" ' cupboards $l2O & , string of sleigh bells $240, 2 hand-sewn quilt tops $27.50 to $62.50 cast iron bulldog $4O and 30 dolls from $4 to v a Shirley Temple doll for $3OO. Sale was conducted by John J. Rutt. OWNER KEITH DAWSON Wapwollopen, PA O