WASHINGTON, D.C. - In a to give fanners and others more protection when they store commodities in warehouses, the U.S. Department of Agriculture will require federally licensed grain and nee warehouses to meet new tests of financial stability starting July 1. The regulations will be effective for all gram and rice warehouse operators licensed under provisions of the U.S. Warehouse Act. Some 2,000 warehouses are currently licensed under the act. “We will take two actions to ensure greater financial soundness of warehouses to further protect those who store commodities in these warehouses,’’ said James Springfield, a warehouse official in USDA’s Agricultural Marketing Service. “First, we will raise the New CHORE-TIME. EARLY SUMMER SALE Frame and fan opening are one-piece, all galvanized con struction for longer life and durability. Fan features durable motor and protective screens for guarded operation. Shutters and high-efficiency motor are available. MODEL 36PF SPECIAL PRICE WITH MOTOR 199.50 COMPLETE SYSTEMS & EQUIPMENT FOR CATTLE, HOG, POULTRY & GRAIN AGRI- 2754 CREEK HILL RD., LEOLA, PA 17540 PHONE: 717-656-4151 ★ SERVING PA, N.J. and N.T. Warehouses under new federal rules minimum net asset requirement from $lO,OOO to $26,000,” he said. The requirement is figured at 20 cents per bushel of the total licensed capacity of the warehouse, rather than the amount of bushels actually stored in the warehouse. A deficiency in required total net assets above the $26,000 may be supported by a like increase in the warehouse operator’s bond. This action was proposed last June 9. “Second,” Springfield said, “we will require warehouse operators to furnish USDA with financial statements consisting of a balance sheet and statements of income including profit and loss, retained earnings and changes in financial position.” Springfield said the statements must be prepared under generally accepted accounting principles 36" Panel Fan NOW THRU JUNE 30th Fan motor suspended by seif-tensioning belt to minimize belt slippage for reliable, efficient performance and minimal main tenance. Fan bearings are self-aligning and pre-lubicated with ammonia-resistant grease for long life. BLADE RPM(I) CATALOG NUMBER SIZE 36" 7652/50 SHUTTERS & THERMOSTATS ALSO AVAILABLE EQUIPMENT, ,nc. MOTOR HP VOUS-AMPS 524 1/2-230-4 1 and must be reviewed or audited by an independent public ac countant in line with standards established by the American In stitute of Certified Public Ac countants. He said the public accountant need not be a certified pubbc ac countant, as a Dec. 7 proposal would have required, but the ac countant cannot be associated with the warehouse firm. Warehouse operators are also subject to an additional onsite inspection by USOA examiners and an audit authorized by the Secretary of Agriculture. “These more stringent financial requirements should lend added financial strength to grain warehouse that store farmers’ commodities,’’ Springfield said. “The requirements also carry out recommendations made by PERFORMANCE CFM/WATT(2) .05" SP .0" SP .05' SP .125" SP 10799 10300 9350 147 Unique compound curve fan blade designed for effi ciency, lower operating costs. |oBMm Certified Ratings Licensed by: CFM). AGRI-EQUIPMENT, INC. OFFERS COMPLETE SALES, INSTALLATION, SERVICE STORE HOURS: Mon. - Fri. 7:30 to 4:30 Sat. 7:30 to 11:30 Lancaster Fanning, Saturday, Jane 19,19*2—417 Secretary Block’s gram elevator taskforce." Springfield said the task force reviewed current gram warehouse laws and regulations to recom mend possible changes to safeguard interests of both far mers and the government when a commercial grain elevator goes bankrupt. The task force also established a committee that will continue to study and recommend ways to strengthen the financial stability of warehouses. Warehouse operators who contract to store gram, nee and NEBCO calls milkerendum defeat a “misunderstanding” SYRACUSE, N. Y. Responding to last week’s defeat of a milk CLYDE C. LUTZ DAIRY EQUIP. 1316 Apple Street Ephrata, PA 17522 (717) 738-1718 or (717) 733-1224 We are serving our Bodmin customers. seed that are either owned by the Commodity Credit Corporation or which serve as collateral for CCC price support loans must comply with the same requirements, ef fective July 1. USDA’s Agricultural Stabilization and Conservation Services’s regulations for these warehouse operators also remove the ceiling on net worth requirements and permit the use of a standby irrevocable letter of credit as an additional acceptable substitute security for net worth deficiencies. promotion order referendum by Pennsylvania dairy producers. Northeast Dairy Cooperative Federation President Edward McNamara expressed disap pointment, calling the defeat “a misunderstanding by producers as to the intent of the program.” McNamara alluded to the measured results of the New York promotion program saying that “the success of New York state’® promotion plan has been well documented and gives ample evidence of a good margin of profitability on producer dollars invested.” According to McNamara, this negative decision by the Com monwealth’s farmers could have far-reaching effects. "In these days of high production levels, it’s important to producers that they use every method available in an attempt to persuade consumers of the value and good taste of dairy products,” he said. “The defeat comes at a time when dairymen should be making every effort to do their share to hold the costs of government programs within proper levels so that the Commodity Credit Cor poration program will be allowed to continue and be effective in maintaining sufficient supplies of dairy products for the consuming public.” The NEDCO executive said of all of the various programs suggested to solve the surplus milk problem, the easiest and most effective could very well be milk promotion. SERVING THE FARMERS FOR 109 YEARS —ST-- HAMBURG SAVINGS FDIC OSES TRUST COMPANY Hamburg. PA Phone: 215-562-3811 A FULL SERVICE BANK Need A New Silo Unloader. Barn Cleaner, Manure Pump, or Cow Stalls? Check Our Prices On Acorn Equipment Before You Moke A Final Decision. 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