Dl4—Lancaster Fanning, Saturday, January 22,1983
Brockett’s Ag Advice
By John E. Brockett
Farm Management Agent
uKT Lewistown Extension Office
mm
Financial Management
Financial management is the
most important lesson a farm
manager can learn. It also is the
most difficult.
Inability or refusal to leam how
to handle finances has been and
will continue to be the undoing of
more businesses, including farms,
than any other factor. That is why
we sometimes find farmers who
have achieved good production
records going out of business. They
learned how to produce top yields
of crops, milk, hogs, etc. Un
fortunately they either never
learned how to calculate costs, and
how to make the best use of their
return, or how to apply what
financial knowledge they may
have learned.
Some Factors
A farmer who produces six tons
of alfalfa hay per acre, then wastes
half of it through poor handling,
poor feeding facilities, unbalanced
feeding programs, lack of
adequate storage or poor
marketing techniques, probably
realizes less profit per acre than
some one with three tons who does
a good job in these five areas.
The first farmer had a higher
cost per acre without the projected
higher income. Yet a high yield is
essential for high profits. But a
good financial manager cannot
stop at high yields. He also must
strive for high quality, less waste,
best use of resources, and top
marketing techniques.
Farmers who started their
business prior to 1970 were born at
the right time as far as profit
potential is concerned. Younger
farmers are far more vulnerable to
economic pressures due to rapidly
escalating land prices and
gyrating interest rates. Land
prices were more in line with
productive capability prior to 1972
and interest rates were relatively
stable until 1979.
Yet some of the older farmers
are in trouble. Why? In most cases
lack of financial management has
been the major undoing factor. If
any group of fanners deserves
sympathy, it is the younger group
that started fanning after 1975.
Land and building prices way
above productive capability
coupled with high interest rates
and tight credit threaten their
existence.
Yet some of them are doing
fairly well (note I did not say very
well). Why? In some cases an
acute sense of financial
management has helped them
overcome the double “whammy”
of high interest and high capital
costs.
But when a farmer started to
farm is still a factor. The younger
farmer must not only try harder,
he or she must also be a better
financial manager than the older
farmer just to stay even.
Use of records is a prime criteria
for a good financial manager. Just
keeping records is not sufficient.
Neither is using the records to fill
out a tax return or a bank balance
sheet sufficient. If those records
are not kept and used to make
business decisions, then good
financial management is difficult
to learn or put into practice.
Financial Management 15...
Financial Management is:
Knowing the cost of producing
the level of yield acquired.
✓ Keeping waste to a minimum.
Marketing your product in the
most profitable way.
Heavy-Duty Wire Floor—
-33% Heavier
Wire For Twice
The Floor Life!
Compare our new heavy-duty
#3 gauge wire to #5 gauge. It's
60% stronger... 60% stiffer.
That means less Hexing and
fewer supports. And the larger
wire surface results in fewer
abrasions to your pigs.
The Best Flooring Value
This heavier #3 gauge
flooring will give you twice the
life of standard flooring. Yet it
costs only slightly more. It's
perfect for new installations or as
replacement.
Grange announces Farm Supply agents
HARRISBURG - Agents for the
new Grange Farm Supply Service
and their territories have been
named by State Grange Master
Charles Wismer.
Wismer said the agents began
taking orders Jan. 10. Interested
fanners can contact the nearest
agent to order their farm supplies.
The new service, which offers
farm chemicals, seeds, baler twine
and fertilizer at discount, will be
available only in these counties:
Armstrong, Beaver, Clarion,
Clearfield, Crawford, Elk, Erie,
Jefferson, Lawrence, Mercer,
Warren and Washington.
Wismer said the service is not
limited to Grange Members; any
farmer is welcome to call his local
agent for current prices on farm
Knowing what this way is.
Using records as completely
and readily as you use the latest
mechanical marvel.
Keeping costs in line with
income.
Knowing how much debt
payment your farm income can
handle.
Not letting accounts payable
pile up.
Analyzing your farm business
to find out weak points.
k- Knowing how, vulnerable you
are to economic changes.
HIGH PRESSURE
WASHING &
DISINFECTING
POULTRY HOUSES
AND VEAL PENS
Spraying hr Mites
And Beetle Control
MAYNARD L. BEITZEL
Witmer, PA 17585 717-392-7227
Sfmyiq sine* 1961
•0-
it«•***—-
supplies. All deliveries will be
made from a supplier in Bowling
Green, Ohio.
The following are agents
registered with the Pennsylvania
State Grange:
Armstrong J. Mitchell Blose,
Yatesboro, PA 16263; 412/783-6365.
Beaver F. Paul Dawson, Rl,
Industry, PA 15052; 412/643-4745;
Carl Soisson, R 2 Georgetown, PA
15043; 412/573-9554.
Clarion Clavin Broeius, R 2
Summerville, PA 15864;
814/856-2801.
Cleafield Ross Orner, Jr., Rl
Rockton, PA 15856; 814/583-7620.
Crawford Ralph Tau, R 3
Saegertown, PA 16435; 814/763-
4831; Chester Tau, Rl Springboro,
PA 16435; 814/587-3865; Earl E.
Krider, R 4 Meadville, PA 16335;
814/336-3907.
Crawford Richard C. Porter,
R 3 Linesville, PA 16424; Merle E.
Siverling, Cambridge Springs, PA
16403; 814/3984167; Charles Black,
Saegertown, PA 16433; 814/763-
3799.
Elk Ron McMinn, Ridgway,
- INTRODUCING -
THE All NEW
HEAVY DUTY WOVEN WIRE
FARMEB BOY AG.
INC.
410 E LINCOLN AVE MYERSTOWN, PA 17067 PH.717-866-7565
BEST IN DESIGN, PRICE AND EXPERIENCE
SWINE S POULTRY SYSTEMS SPECIALISTS
PA 15853; 814/776-6376; Melvin
Sarginger, St. Marys, PA 15857;
814/781-6613.
Erie - Michael Johnson, Lake
City, PA 16423; 814/774-9246.
Jefferson Joe Shields, R 1
Summerville, PA 15864; 814/856-
2687; John R. McFadden, R 3
Reynoldsville, PA 15851; 814/938-
4606.
Lawrence W. Paul Mc-
Cullough, R 1 New Galilee, PA
16141; 412/336-5398; Robert Boak,
R 4 New Castle, PA 16101; 412/924-
9215; Arthur J. Wilson, R 3 Volant,
PA 16156; 412/946-8019.
Mercer William C. Vemam,
R 1 Jackson Center, PA 16133;
Ellsworth Jamison, R 4 Grove City,
PA 16127; Joanne
Werger, Greenville, PA 16125;
412/588-3667.
Warren John Kolick, R 1
Tidioute, PA 16351.
Washington George A. Jones,
Claysville, PA 15323; 412/663-4226;
W. Leland Archer, R 1 Prosperity,
PA 15329; 412/225-7575; William F.
Irwin, R 4 Monongahela, PA 15063;
412/258-8099.
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