- Dairy
a ~' Business
fkh K BS
JVewton Bair
WHAT ARE THE FARM
RECORDSFOR?
We are all furiously scurrying
through our files, desk drawers,
and shoe boxes, looking for all the
evidence we need for IRS on the
fifteenth of April. I don’t know just
why it is, but somehow the major
goal for many farmers at this time
of the year is to prove to Uncle Sam
that we didn’t make any money
last year. No profit, no tax to pay!
Boy, that’s a relief!
There must be something wrong
with that logic. Especially since we
have survived another year, paid
our bills, and even bought mother a
new dishwasher. Then why be so
happy about showing so little profit
that we don’t owe Uncle Sam any
of it? Let’s examine that thought
for a moment.
Granted that operating your
business is a real challenge these
days. But, try to realize that it has
always been hard work and lots of
headaches to make a living on the
farm. The only thing that is
making the scene different today is
that in addition to the usual sweat,
you have to be an expert business
manager to make a farm really
pay.
I’d like to emphasize the expert.
Now, no expert is going to operate
a business without PROFIT as a
goal. So, along with the Good Life
on the farm, making a profit
should be our aim, and it certainly
is no sin to achieve some profit,
even if some of it must be shared
with our Government. So, beware
of some of those practices like
investing in oversized machinery
just to use up the farm profit to
avoid taxes.
Of course, it’s just good business
tomanage proper expenditures
that have to be made anyway. Pre
payment of Spring supplies and
timely visits to your friendly
Banker to minimize interest
payments can save a bundle, and
any money saved will feel so good
in the Bank account. And if there is
a real profit, Unde Sam deserves
an Honest share. Would you really
like to farm anywhere else in the
world than right here in the
U.S.A.?
IS THERE A BETTER USE
FOR THE SHOEBOX?
The shoebox is only symbolic of
the limited use many of us make of
our farm records. Maybe the
record book you keep is quite
adequate for an IRS audit. But is it
adequate for management pur
poses? What do your records
tell you about the strengths and
weaknesses m Uie business' Are
they set up in sue* a way that a
real business analysis ran be
made? Can you use them to and
the most efficient crop program
for '.""ir farm 9 Can f P n j£
pays the most efficient crop
program for your farm'' Can you
tell if it pays to raise heifers, or
bulls?
Do you really know if it is
cheaper to rasie soybeans than to
put that extra land into good forage
for the herd? Are you making good
use of the labor on the farm, both
yours, the family and the hired
labor? Above all, does your farm
show a reasonable return for your
capital investment, both yours and
the Banks? The Shoebox records,
as well as many minimal record
books, can’t begin to answer these
and many other vital questions
that you should be asking of them.
CONSIDER A COMPUTER FOR
RECORDS AND ANALYSIS
A computer will not manage
your farm or milk the cows for you.
(Although you would be surprised
at the things they can do.) If you
are still timid about associating
with those mini-monsters, don’t
get discouraged yet. Visit a
friendly neighbor who is already
using one to manage the farm
affairs. I don’t mean someone who
is playing games on a bottom-of
the-line cheapie. Today’s farm
business requires a computer with
a sizeable memory and must be
able to use the really good software
programs that were developed
especially for that brand and
model. Some of the highly ad
vertised brands will probably fall
by the wayside because they can’t
deliver on the promises they are
making. The one that the suc
cessful manager is using is usually
one that has been on the bigtime
market for a long time, (five or
more years). It will also be around
a long time to come, and continue
to increase in value and
usefulness. My Apple lie with 128 K
**"*"*~~*~' ' mr , , ..
of memorv i, h real Workhorse for good farm analysis program to
me answer the most vital questions
If you are not ready for a com- about your farm business. Many
puter (which by the way is Extension offices are now using
depreciable as a farm tool), you the program developed by John
should be using a complete farm Brockett. For a small fee, it is
accounting system. You may need available to anyone who has
a professional farm accountant to adequate records fc one or more
keep the books. And after you have years. John or I would be glad to
them, by all means make use of a talk to you about it.
Jersey scholarships
available
COLUMBUS, Oh. High school
graduates and college and
university students with Jersey
backgrounds are eligible to apply
for ten scholarships awarded
annually by The American Jersey
Cattle Club.
The basis for selecting the
recipients will be need, character,
scholastic excellence and other
qualifications commonly used as
criteria for the awarding of
scholarships for study at an ac
credited college or university.
There are four Jack C. Nisbet
Scholarships awarded annually,
each in the amount of $750. Entries
for these scholarships are ac
cepted from those Jersey youth
who are entered in the previous
year’s National Jersey Youth
Achievement Contest (announced
during the current year).
Students who are enrolled in
college or those who have com-
r
■'■.,^l E?
mt.
pleted high school and are ready to
enter a college or university are
eligible to apply for one of three
William A. Russell Scholarships
awarded annually by the AJCC.
Each scholarship is for $650. and
applicants must have an interest in
or background with Jerseys.
Two V.L. Peterson Scholarships
in the amount of $650. each are
awarded each year to students who
have completed at least one year of
college. Any Jersey junior meeting
that qualification may apply for
these scholarships.
The Paul Jackson Memorial
Scholarship is awarded each to one
Jersey junior who has completed
at least one year of college. The
1984 scholarship is for $750.
All applications for scholarships
are due in the AJCC office by July
1. For further information, con
tact: The American Jersey Cattle
Club, P.O. Box 27310, Columbus,
Ohio 43227-9987.
Future
Farmers of
America