C2—-Lancaster Farming, Saturday, March 19,1983
BBrockett’s Ag Advice
By John E. Brockett
Farm Management Agent
Lewistown Extension Office
The last part of our financial
management clinics has been
“Let’s Take a Look at Some
Solutions.” Some people have been
disappointed that we did not get
down to specific cures. The un
fortunate thing in a room of 30 to 50
people is there is no uniform cure.
One person’s problem will not be
cured by another person’s solution.
So our program has been based
around (1) keep and use records,
(2) analyze your farm business
then understand what the analysis
says, (3) make sound decisions
based on facts not guesses, (4) plan
your moves on paper before going
ahead, (5) use all of the
management tools available, and
(6) remember you are the only one
who can solve your own problems.
Farm Analysis
I have been doing farm analyses
on my computer whenever I can
grab a little time, I have also been
reviewing other analyses. Some of
the results I have been seeing are
quite interesting.
Let's take a look at some
average figures then compare
them to the best money makers.
Some key points;
Crop Summary
Net Return per crop acre:
Average managers based on
profits had a return of $2O to $5O
per acre.
Top crop managers had a return
of $BO to $llO per acre.
Dairy Summary
All farm cash expenses per cwt.
of milk (expenses do not include
interest):
AGWA
Average managers had a figure
just under $lO per cwt. of milk.
Top managers had a farm cash
expense of-$8 or less per cwt.*of
milk.
Dairy expenses per cwt. of milk*
(in ray analysis dairy expenses
include inventory changes, ac
counts payable changes, cash
expenses, depreciation, interest,
and a market change for home
raised feed).
Average managers had a cost of
$l2 to $l3 per cwt.
Top managers kept their cost
below 111 per cwt.
Feed efficiency was measured
as dairy returns per $lOO worth of
feed fed (including home raised
feed):
Average managers had a feed
efficiency of $l7O to $lBO.
Top managers had a feed ef
ficiency of $2OO to $225 coupled with
a milk sold figure in excess of
14,500 lbs. per cow.
Capital Summary
Percent of cash receipts to pay
operating expenses (all cash ex
penses except interest plus
changes in accounts payable):
Average managers use 55 to 60
percent of cash receipts to pay
these expenses.
AGWAY
BEDDING
CHOPPER
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(49-4200)
For a free demonstration contact
store or representative.
Oxford
215/932-9361
Blairsvilie
412/459-7830
Wysox
717/265-9131
Eighty Four
412/222-0600
Winfield
717/523-1204
Somerset
814/445-4184
New Milford -
717/465-3139
Pond symposium slated April 9
AVONDALE A symposium and Maintenance of Small Ponds”;
entitled “Ponds of Southeastern Robert Hesser, Pa. Fish Com-
Pennsylvania: Construction, mission, “Algae and Weed
Maintenance, and Biological Problems in Ponds/State Permits
Management” will be sponsored for Chemical Treatment of
by the White Clay Watershed Ponds”; Russel Maurer, Pa.
Association on Saturday, April 9, Bureau of State Parks, Dept, of
at the Stroud Water Research Environmental Resources,
Center near Avondale, Pa. “Herbicide treatment of aquatic
The symposium will be held plants”; and Terry Rader, Penn
from 9 a.m. to 12:30 p.m. and will State, Forest Resources Ex
feature slide shows and lectures by tension, “Fish Management -in
Elbert Wells, Soil Conservation Ponds”
Service, “Design, Construction
Top managers use 45 to 50
percent.
Net accrual profit per cow
(accrual profit includes all income
and all expenses both cash and non
cash):
Average managers have a net
farm income per cow of $275 to
$4OO.
Top managers have a net farm
income per cow of $7OO to $llOO
dollars.
In the next few columns, I am
going to discuss why some farmers
seem to be able to run a more
profitable operation than others.
Temple
215/929-5264
Pleasant Gap
814/359-2722
Chapman
215/395-3381
Following the symposium, in
terested participants can tour the
Stroud Water Research Center,
which is a stream and river
ecology laboratory of the Academy
of Natural Sciences of
Philadelphia. Directions to the
Stroud Center: Rt. 1 to the
Toughkennamon exit, 1.5 miles
north on Newark Road, turn left on
. Spencer Road and 0.7 miles to
Stroud Center on right side of road.
Lebanon Lancaster
717/273-2621 717/394-0541
Carlisle
717/243-4312
Butler
412/482-2195 .
Chambersburg
Dublin
215/249-3556
York
717/792-2674