Records-A 1980 s
-Style Solution
Are you in a cash flow bind? Do
you find operating expenses eating
up a larger and larger portion of
your income?
Do you desperately need to know
whether income three months or
six months from now will cover
expenses? Or do you have taxes to
pay but no money to pay them?
A great many fanners will be
answering one or more of these
questions yes within the next three
years. Many of those who have now
or will have the above problems
will be faced with the rather un
pleasant situation of losing their
business.
Records Could Help
Good records, a careful analysis
of those records, and use of both
v could help to avoid the problems
or at least lessen the
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Brockett’s Ag Advice
By John E. Brockett
Farm Management Agent
Lewistown Extension Office
impact. Let’s look at examples of
where records could provide a
solution.
Example A: A cash flow bind: a
careful analysis of your records for
1981 could show possible danger
areas such as: months where in
come and expense come close to
meeting or where expenses exceed
income; months where you have
agreed to make debt payments
with inadequate income; months
where yon let supply bills slip due
to inadequate income, extra ex
penses, a due debt payment or all
three.
Once the analysis was done, you
would have some alternatives;
shift expenses to a more suitable
month if you can; save from
surplus months if you have any; go
to your creditor with a detailed and
practical plan for debt payment
adjustments; forgo a desired
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purchased; or tighten youi :<unuy
spending.
Example B: As operating ex
pense ui relation to income grow: a
careful analysis of your records
could show waste in the use of feed,
fertilizer, fuel, energy, etc. Two
years ago 1 found that some dairy
producers used three times as
much electricity to produce a
hundred pounds of milk than
others. I also found that some
fanners were able to produce
twice as much feed or feed crop
per dollar of fertilizer as others.
Explore a number of questions:
are you feeding as economically as
possible?; do you use forage
testing to develop your feeding
program—if not why not?; do you
fertilize according to "soil test—if
not why not?
Good records could show you
how to squeeze the last possible
penny of profit out of your hard
earned investment.
Example C: Projecting ahead: it
is a lot easier to meet adversity if
you know what you facethen if you
suddenly turn a corner and run
head on into it. Using records to
develop a projected cash flow for
your farm business seems like a lot
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Lancaster Farming, Saturday, January 16,1982—0
of monkey business, but it may
mean the difference between the
life and death of your business.
Look at this way—let’s say you
have a valuable cow that you
really want to keep, but it is sick.
The vet told you that you would
have a chance of saving that cow if
you stayed up all night and took
her temperature every 30 minutes
then gave her a shot of one thing if
it was over 106 and another things
if it was under 106. Would you do it
or would you let the cow go down
the tubes?
0.K., now I’m the vet and it isn’t
a sick cow you have but an ailing
bnsinoco How important is it to
you?
The Challenge
American farmers as a group
are the most willing workers in the
world. In most cases, ail members
of the family are involved in the
physical work of the farm
business. Very few other
businesses can equal that type of
physical determination.
The challenge of the American
family farm of the 1980 s is to equal
the physical determination to
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