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.
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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
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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