D24—Lancaster Farming, Saturday, May 19,1984
Brockett's Ag Advice
By John E. Brockett
m Farm Management Agent
Lewistown Extension Office
Why Farmers Fall
If I had a wish that would be
granted, it would be that everyone
who really wanted to farm could do
so. Unfortunately this is not
possible. Why do some farmers
prosper and others fail? Level of
management, particularly
financial management, is one
main ingredient. This is a factor
that I have discussed many times
in my column. Yet, there are other
factors that may cause failure.
Some of these are partly or wholly
out of the farm family’s sphere of
influence. Others are a matter of
poor timing, being too kind, or too
prone to accept well meant but
poorly informed advice.
Over Extension
There is a fine line between
healthy expansion and over ex
tension. Sometimes good
managers, astute advisors and
careful lenders have difficulty
deciding which is which. It is no
wonder, because an investment in
1980 that would be just healthy
growth to be applauded might well
be an over extension in 1984. Other
times though the over extension is
a result of dreams and too much
use of the wish book. Example: the
neighboring farm is for sale. It is a
once in a lifetime opportunity to
latch on to a great property. Be
careful - do a lot of figuring
because it may also be the anchor
that drags you down. The purchase
may cause a healthy cash flow
margin to become a rather sick
trickle.
Personal Injury, Who Is Responsible?
Accidents can happen to anyone, anytime. When they happen
on or off your property, you are responsible. That's why you
need the total protection of an Old Guard Mutual Insurance
plan
Old Guard
MUTUAL INSURANCE. COMPANY
2929 Utilz Pike • PO Box 3010
L ancastPf Pennsylvania 1 7604
Phone (717) 909 9361
NEED ROOFING & SIDING?
To Many Obligations
You may have a profitable
operation. It may have a real good
income producing capability. But
every well has a bottom.
Sometimes a farm family puts the
burden on themselves because of
too many “reasonable” demands.
Let’s help our son get started on his
own - let’s help our daughter - we
deserve a new kitchen - what about
a trip to Japan - our church needs
additional financial help - etc. All
very worthwhile, all com
mendable, all possible maybe:
actually each one in itself may be
readily absorbed in the financial
structure of the ongoing business.
The problem occurs when all are
combined. Example; I have $lOOO
to spend. I give 20 percent to the
church, give each of my children
(all 8) 100 dollars, give my wife 200
dollars to spend on presents for the
grandchildren, and use the rest to
take the family out to dinner.
Question is how much of the $lOOO
do I have left? Answer is a minus
$264 (dinner cost $64 including tip).
I just put that $lOOO under too much
of an obligation for its worth.
Co-Signing A Note
This is a sticky wicket because
people feel it is both an honor and a
duty to be asked to co-sign a note.'
Only those who have reached a
state of reasonable affluence and
respect in the community can do
this. It also may mean that if you
refuse, that person may not be able
to progress. I won’t say don’t do it,
but if you will take my advice,
THE FORNEY AGENCY, INC.
P.O. Box 308
Brownstown, PA
717-626-8508
WILLIAM R. HENRY
1055 Shoemaker Ave
Shoemakersville, PA
215-562-8173
RICHARD S. MILLER, INC.
R D #2, Jonestown, PA
717-865-4127
KILMER INSURANCE
AGENCY
Box 337, Wyalusmg, PA
717-746-1007
“don’t co-sign anything that you
can not afford to pay”.
Temporary Job
It is a temptation to take tem
porary work off the farm. Whether
it is selling something, owning a
dealership, driving a truck, or an 8
to 5 job. It means extra income.
The usual rationale is “I can hire
someone at 50 percent of what I
make in the off farm work and
have the rest for myself”. In 25
years plus of working with farm
financial problems, I’d say that in
most cases it doesn’t quite work
that way. A dealership means
discounts for yourself and maybe a
few easy sales. But what about the
cash outlay for extra parts, the
collection of bills, and most im
portant the service you have to
provide? Driving truck sounds
flexible but usually means a lot of
hours away from management on
the farm. What do you do with an 8
to 5 job when the hired man calls in
sick or a water bowl breaks 10
minutes before you leave for the
job (10 minutes after it’s “too bad
folks I’m gone”).
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SALES AND SERVICE
If Your Local Pooler Poos Not Hove It,
Contact
PEQUEA BATTERIES
Ronks. PA 17572
Distributor & Warranty Station for Parmak
INSULATION
R. MAX URETHANE
(4xB or to your spec)
★
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-CNr*
'■■■■ 1 ' l' 1 I
r
ter.
r
J r
1 1
RD2, Box 267. East Earl, PA 17519
If you are going to succeed, keep
alert. Be a good total manager,
leam to set priorities even when
they hurt, learn to say no, select off
ANNAPOLIS, Md. Picking
and eating time for that fresh
Maryland produce is just around
the corner and available to help
you locate fresh fruits and
vegetables on local farms is the
1984 edition of “Pick Your Own and
Direct Farm Markets in
Maryland” directory.
The guide, listing about 100 pick
your-own farms and farmer
operated roadside stands, has been
published for over 10 years and is
made available free to the public.
A joint effort of the Maryland
nnoricjjHp Mg-yptinf Association
Distributor For
FIBERGLASS ROLLS
BLOWN IN
- -
Jin
SALES
Call us for low prices -
(717)354-7561
What Do I Do?
Md. Pick Your Own Booklet
WHEELING
CHANELDRAIN
ROOFING & SIDING
Colors In Stock
• White • Gold
• Brown • Tan
• Silo Blue • Red
• Avocado Green
• Plain Galvanized
• Light Green
farm work that is completely
compatible with your farm
operation - there may be none so
recognize it.
and the Maryland Department of
Agriculture’s Marketing Services
Section, supplies of the directory
are being sent to public libraries
and offices of the Maryland
Cooperative Extension Service
throughout the State.
Those who wish to obtain one by
mail should send a stamped, self
addressed, Number 10 (business
size) envelope to: “PYO Guide”,
Maryland Department of
Agriculture, 50 Harry S. Truman
Parkway, Annapolis, Maryland
21401.
Distributor For
ALUMAX ALUMINUM
ROOFING & SIDING
COMPLETE POLE &
OTHER BUILDINGS
TRUSSES