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. ’ ’
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