D2—Lancaster Farming, Saturday, July 23,1983 BUSINESS NE Nevin Wagner, of Triple H Construction, has an ap propriate poster above his farm building design board. Triple H names designer EPHRATA Nevin Wagner, of Womelsdorf, has been named Farm Building Designer with Triple H Construction, Ephrata, according to Glenn Horst. A graduate in ag engineering at Penn State in May, Wagner is involved in the design of all types of farm structures, including the ventilation systems which have become an integral part of today’s confinement buildings with climate controlled atmospheres. "In the construction of the buildings, it will not only be im portant to design the right type of ventilation system, but to assist the farmer with developing an operating schedule which will provide the most efficient control of the atmosphere in the dairy, Fence charger MARLBORO, N. J. A new line of solid-state electric fence chargers are now available from Communication Products Com pany, Marlboro, N. J. Known as Super Atom fence chargers, the new units are designed to provide superior performance under the most ex treme conditions. Utilizing the most advanced technology in the charging circuits, these fencers are able to effectively, but safely charge through heavy wet weeds without “shorting out.” , This unique design also allows the farmer to economically and conveniently energize existing wire fences with wooden posts without having to add insulators. A short duration, high energy pulse, insures dependable voltage over **l ■« i ' swine or poultry buildings, ” Wagner explained. The design of buildings will also' feature the use of the most recent developments in climate control, including solar collectors, heat exchangers in hog confinement or geo-thermal circulation tubes. Wagner is a member of the American Society of Ag Engmeers and thus will be able to keep current with the latest farm building’ design trends in con sultation with colleagues and his former professors at Penn State. He was a member of the Student Branch of ASAE at Penn State. Triple H Construction, which specializes in farm building design and construction, is located at 14 N. Church St., Ephrata. introduced longer stretches of weed-covered fence without the danger of starting fires. Three models are currently available: Model 2K is an economy model designed specifically for short fences or to control small animals. The most popular is the Model 4K which provides a higher voltage output for larger livestock and fence lengths up to 15 miles. The most versatile and powerful. Model 6K, is capable of powering up to 25 miles of fence and handling the most severe wet weed con ditions. This model offers many features such as a "power pulse/short” indicator light that allows constant monitoring of the fencer, and an additional “low power” output when lower voltage is preferred. • •• - Chore-Time expanding facilities A ground-breaking ceremony was held July 11, by CTB Inc. to begin a major expansion of Chore-Time Equipment lnc.'s operations at their Milford, Ind., location. Construction is set to begin on a new 50,000-square-foot building (shown) which will house the manufacturing operations for automated feeding and egg, collection equipment for the firm’s line of egg production systems. Also under construction will be a 50,000 square-foot addition to the present Chore- Time building. The new addition will be the center for manufacturing operations for CTB’s Swish brand of poultry watering equipment, as well as for the manufacture of certain plastic parts for other CTB products. Both buildings are scheduled to be completed by next Janurary 1. CTB Inc. is the parent company of Chore-Time Equipment, Brock Manufacturing, and Swish Watering Systems, all of which are headquartred at Milford, Indiana. MOLINE, 11. - The PIK program is changing the methods by which farmers acquire equipment, and as the end of the year approaches and tax planning becomes more important, the trend is likely to continue. So say John Deere execuUves concerned with retail sales financing and taxes. "A year ago,” says Jeff Farmer, Manager of Sales Finance, “we saw a tremendous surge m leasing. That’s because leasing has ad vantages for farmers who could make more productive use of their cashflow.” Leasing usually requires much lower initial payments than con ventional installment purchasing. Secondly, a farm' equipment lease, unlike other kinds of leases, allows the leasing company to pass along tax savings to the customer in the form of lower lease payments. “But for some farmers, FIK has created more financing alter natives,” he says. Wagon gear LEBANON Country Boy Mfg., of Lebanon, is introducing its Heavy Hauler wagon running gear which is a new concept in running gears. The most outstanding feature is the walking tandem axle in front with automotive type steering. The hitch also turns on a 90-degree angle for sharper turns without straining the wagon. Some of the advantages of the The Heavy Hauler wagon running mdem axle in front with automotive PIK profits may help machinery sales "When they receive their FIK certificates,” says Farmer, "in effect, they will be harvesting a crop which they had no expenses in producing. When they sell the PIK crop, they will realize sub stantially higher profits than on crops they had to grow and har vest. They may find themselves in higher tax brackets, and will be looking for deducUons. “For those farmers, investment tax credit and depreciation might provide even more tax benefits than leasing.” Joe Cravero, Senior Tax At torney for John Deere, says that the tax savings generated by an equipment purchase are so significant that, to be realistic, a tractor or combine purchase should only be considered on the basis of its “after-tax price” and he offers and example showing how tax provisions affect the transaction: "Suppose you are considering introduced tanuem axle front and rear are; increased flotation, less soil compaction, and a lot less strain on the box in uneven terrain. Some applications include; forage wagons, large round bale wagons, and large gravity boxes. Currently "the wagon is available in a 10-ton model with larger capacities to be introduced in the future. For further information: Country Boy Mfg. 1601 King St. 717- 272-9595. gear features a walking type steering. the purchase of a tractor which, with all the discounts, rebates, and other programs'so popular now, has a bottom line selling pnce of $30,000. That price is not the real bottom line. The real bottom line, or true cost, is stilOasra. it is calculated based oo|pth£ tax savings generated by tthe nu| accelerated cost recovery systeraH •The first benefit to consider the 1() percent investment tax credit. That amounts to 95,000. And, because it is a credit, it comes right off the tax liability, not taxable income. Thus, the benefit of the credit is the full 95,000 regardless of the farmer’s tax bracket. "That brings the real price down to $45,000.” The second consideration is depreciation provided by ac celerated cost recovery system. In the first year, the accelerated depreciation deduction is 15 per cent of the cost df. the equipment less one-half of tax credit savings. In the case of a $50,000 tractor, that would be $7,125. “But the accelerated depreciation is a deduction from taxable income,” says Cravero, "so its effect on the after-tax price of the tractor depends on the taxpayer’s income tax bracla|L Obviously, the higher the brackW the greater the savings." In some cases, where the farmer is m the top tax bracket, the after tax cost at the end of the five-year depreciable life of the equipment can be as little as half the original price. At the other extreme, where the fanner finds himself in a lower tax bracket, leasing may still be the better alternative. This is simply because the leasing company can use the tax benefits and pass these on to the farmer-customer in the form of lower payments. “With price reductions, rebates,, bonuses, waiver of finance charges and other deals which all com panies are offering these days, there are a lot of farm equipment bargains available today,” says Deere’s Graven). "Add to these the tax savings generated by the In ternal Revenue Service code, aA farmers hAve an unprecedentOT opportunity to buy or lease productive new equipment at substantial sa vmgs. ’ ’ I
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