D€—Lancaster Famine, Saturday, October 9,1962 Is farm equipment shortage developing? MINNETONKA, Mn - Tractors and other major farm machines could start to become scarce by the second half of 1983, according to a farm equipment guidebook publisher. Morris W. Dorosh, whose Marshall Publications of Min netonka, MN. produces the semi annual Marshall’s Farm Equip ment Guide, says the farm equipment market is on the verge of a major change that will mean higher prices, fewer financing concessions and waiting lists for many tractor and machine models. "The problem in the farm equipment industry over the last CHICAGO, 11. - More than 550 persons from the United States and Canada attended the eighth annual North American Agricultural Lender’s Conference, Sept. 12-14, 1982 at the Chicago O’Hare Marriott Motor Hotel. Lending institutions from 18 states and 2 Canadian provinces were represented at the meeting. The two-day conference was sponsored by A.O. Smith Har vestore Products, Inc., a manufacturer of oxygen-limiting feed storage structures, automated feeding equipment, and liquid manure handling systems and their dealers. “This annual lender’s con ference is designed to provide representatives of agricultural credit institutions and agencies throughout North America with an opportunity to learn of new developments in agricultural finance,” said Carl Clayton, organizer of the conference and director of marketing staff ser vices for A.O. Smith Harvestore Products, Inc. “This meeting also gives ag lenders an excellent chance to take a look at the exciting challenges that face them in die years to come,” he added. The Lender’s Conference program involved presentations by a number of authorities on agricultural finance. Among the speakers were Frank KALAMAZOO, Mich. - Quar termaster, a combination an tibiotic formulation for treatment and prevention of Staphylococcus aureus mastitis infections in the dry cow, is now available ex clusively from The Upjohn Company. Hamilton Pharmacal Company, Division, West Agro-Chemical, Inc., and The Upjohn Company recently concluded an agreement whereby Upjohn has been selected to be the exclusive marketer for Quartermaster. Quanmaster is an Rx product available only from veterinarians. Gerald A. Welch,-division vice treatment, president of Upjohn’s Agricultural The value of usuig Quar- Unit, said Quartermaster puts the termaster as part of an effective company into the position of mastitis control program was having two dry cow products demonstrated in a three-year trial P* sr?* * ' - v % x :r! iik „4&* £-w A sVv<4. v.. , two or three years has been similar to that of agriculture itself: overproduction in the face of weak demand," says Dorosh. The scramble to reduce manufacturer and retail inventories and generate cash at a time of record borrowing costs has financially strained every major manufacturer, ac cording to Dorosh. He predicts that at least one, possibly two of the biggest names in the farm equipment industry won’t survive in their present form beyond mid -1983. “Farm equipment and tractor inventories are being reduced quite rapidly, which means that fewer units are being produced Harvestore sponsors ag lender conference More than 550 persons from the U.S. and Canada attended the eighth annual North American Agricultural Lender’s Conference, Sept. 12-14, at the Chicago O’Hare Marriott Motor Hotel. W. Naylor Jr., undersecretary of agriculture, U.S. Department of Agriculture, who presented a Washington insider’s view of the outlook for agriculture; and Art Buffington, president of the Federal Land Bank of Omaha, Neb. who discussed long-term agricultural lending. Additional speakers included John F. Marten, staff economist, Farm Journal, who discussed the outlook for agriculture; and Marvin R. Duncan, assistant vice president and economist, Federal Reserve Bank of Kansas City, Mo. Upjohn to market mastitis treatment Quartermaster and Drygard and Special Formula 17900 Forte, a procaine penicillin-novobiocin formulation for lactatmg cows, available to the veterinary profession. “Upjohn’s product line will enable veterinarians to offer their clients a more complete mastitis treatment program," Welch commented. Each 10 ml syringe of Quar termaster contains 1 million units of micronized Procaine Penicillin G and 1 gm of micronized Dihydrostreptomycin Sulfate in an extended action base tor longterm than are being sold”, says Dorosh. Many production lines are in definitely idle and most of those still operating are working at reduced rates. Dorosh expects this to continue until the industry is sure that a genuine recovery in farmer demand has begun, in the meantime, inventories will likely shrink to the point where not all models or types will be available for immediate delivery from a dealer lot. Factory ordering will become common at prices much closer to list. Manufacturer’s list prices have been increased more slowly in most cases than actual production The economist provided an update on the fast changing field of leasing agricultural products. Other speakers represented universities, lending institutions, and the staffs of A.O. Smith Harvestore Products, Inc., and its dealerships. Also on the program were farmers with extensive ex perience in the effective use of credit. The conference also featured tours of the sponsoring company’s manufacturing facilities at OeKalb, 11. conducted by Cornell University researchers. The test involved 1,973 infected quarters on 24 commercial dairy farms. Trial participants followed a mastitis control program which included udder sanitation, treat ment/culling of severely affected cows, and infusing all quarters of all cows at drying-off with Quar termaster. Trial results showed that when infected animals were placed on this program, infection rate dropped from 28.1 percent of the quarters to 7.1 percent a 92.9 percent recovery or elimination of infected quarters. Another well-controlled field study conducted by The Upjohn Company confirmed the efficacy of Quartermaster in reducing frequency of Staph, aureus mastitis infections. Hesults showed that Quartermaster eliminated 72 percent of Staph, aureus infected quarters, com pared to elimination of infection in 34 percent of non-medicated control cows. / '3 'w' i ><* * *s \ V I --'I costs since 1979. With discounts and rebates from the factory and price-shaving by dealers, most farm machines sold in the past two years cost more to produce than buyers paid for them. It’s the inability to obtain “normal” manufacturing margins, much more than the highly-publicized debt-service problems of some companies, that is the most serious problem even for the industry leaders. Manufacturers don’t have to operate at the production rates of the homing 19705, according to Uorosh. "Most manufacturers have excess capacity even for good years. Some are now starting to rationalize plants and product lines in order to be more flexible and be able to operate at lower output and sales rates. This will allow them to operate profitably even in poor sales periods so that the market probably won’t be flooded with big-ticket machines again for years to come”. A factor in the current situation is the introduction of new tractor model lines this year by Allis Chalmers, Ford, International and Deere. “Filling the distribution pipeline with new models kept output higher than it would have Jan. 15 set for new Purina plant St. Louis, Mo. Tom Pot terfield, Director of Operations, North Atlantic Area, for Ralston Purina Company’s Chow Division has announced that the Company’s new Chow manufacturing facility, now under construction in Lan caster will be completed and on stream by Jan. 15. According to Potterfield, “Our new Chow plant will utilize all the latest manufacturing equipment and techniques. We are pleased with the progress made here in been otherwise and contributed to the new-tractor glut”, Jkys Dorosh. Many dealers are selling new tractors of both new and ob soleted models, which especially depresses values of some late model used tractors. The latest edition of Marshall’s Farm Equipment Guide shows clearly that used-equipment values have dipped along with those of new tractors and equip ment. Additional downward pressure in the used market has come from an unprecedented number of farms and dealership dispersals, liquidations and auctions. But used tractor and machinery prices will recover faster than those of new machines, Dorosh anticipates. “Buyers who go new-tractor shopping a year from now will experience the same kind of ‘sticker shock’ that’s been hitting new-car buyers. That’s likely to cause a surge equipment values, larger, late-model units in prime condition. With fire-sale deals; huge factory rebates and below cost financing almost a thing of the past, the used market should be booming by this time next year”-. Buying soon will save money in the longer run. as opening Lancaster County and the tremendous support we have received from the community. Fog that, we are especially grateful.” 3 As announced earlier, the ne\| plant will employ 15 people and have an production capacity of 150,000 ton| of Chow feed products per year. Ralston Purina Company, based’ in St. Louis, is the world’s largest producer of commercial feeds fog livestock and poultry. |
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