DlB—Lancaster Fanning, Saturday, October 27,1984
FINANCIAL PROBLEMS -
POSSIBLE SOLUTIONS?
There can be solutions to
problems if they have not gone on
too far. Let’s look at some of these.
Work with Lender
Most farmers would like to go to
the lender and say “here is your
money.” I am now paid off.”
Goodbye! A second choice would
be “I need A third choice would
be “I need $ to do this.” Un
fortunately it does not work that
way. How would you react if a
farmer who you only see once or
twice a year came to you and said,
“I need your new combine” or
even “I need your new combine to
harvest com.” Wouldn’t you want
to know more about it such as
acres, where he is going to use it,
when he will return it, what
guarantees he will place on it if he
damages it, and how he expects to
pay for its use. That money you are
borrowing is someone else’s
money. They have hired the
banker as a caretaker.
Do you want the best possible
credit program? Are you in
terested in refinancing, borrowing
more money, or just changing
lenders? If you want to get the
most from your borrowing efforts
you must treat the banker the
same way you would treat a mere
acquaintance who wanted to
“borrow” you new $lOO,OOO
combine.
1. Be able to show records on
what you have done to make
money in the past.
2. Be able to show how well you
have used your income to pay
expenses, debt payments, make
capital purchases.
3. Tell him how much you want,
why you want it, how you will
make the payments, and when you
will make payments. Then show
him how you figured all of this.
WE DARE YOU
Brockett’s Ag Advice
By John E. Brocket!
Farm Management Agent
Lewistown Extension Office
4. The key word is records.
Go Back to Lender
If you are having problems due
to drouth, unusually high input
prices, a disease, loss of market, or
any other reason. Take your
records to your lender and ask;
1. Could I refinance to reduce
payments?
2. Could I go on an interest only
program for a period of time?
3. Do you want me to declare
bankrupcy? (as a last resort of
course).
Some farm families have put
themselves through a wringer in
the past few years. The stress of
dealing with financial problems is
bad enough for someone who
understands finances. For many
farm families this lack of financial
knowledge can cause even more of
a stress. For some a partial
solution might be to go to someone
such as an experienced lender, a
successful farmer, or a farm
management professional and
discuss your problem.
Too often farmers have such a
pride in themselves, as they
should, that they continue to beat
their head against a blank wall
until the bitter end. Sometimes
admitting to someone, who un
derstands the financial side of your
business, that you have a problem
can be the first step towards
solving that problem.
As a last recourse, you might
even consider discontinuing far
ming. A tough decision but one that
might save your marriage or even
your life. Very few farmers or ex
farmers are unemployed for long.
Most of you have learned at least
one very valuable lesson and that
is you know how to work and can
work at a rather wide variety of
jobs.
Last Recourse
Should I sell or store grain?
M'WAKK. Del As harvest
gets under way, many fanners are
trying to decide whether to sell or
store grain not contracted for
immediate delivery. That's not an
easy decision to make.
Cash delivered corn worth $2.85
at harvest will cost 35 cents a
bushel to store until March,
making the breakeven price at that
time $3.20. Based on current
market prices, farmers could
stand to lose 20 cents a bushel by
storing their grain until then,
according to University of
Delaware extension marketing
specialist Carl German. However,
he says the U.S. Department of
Agriculture’s October 12 crop
production estimates hint that the
situation could change, making
storage a more attractive option
for growers who’d like to hold
some of their grain for future sale.
That report is bullish news for
com and soybean prices, the
specialist says. In it the USDA
revised its previous corn
production estimate downward by
54 million bushels; it also lowered
the soybean estimate by 56 million
bushels. Total U.S. corn harvest at
a projected yield of 105.5 bushels
an acre will amount to 7.498 billion
bushels. At a projected 29.5 bushels
an acre, the total 1984 U.S. soybean
crop could come to 1.972 billion
bushels.
Delaware’s October 1 corn
production estimate remains
unchanged from September’s at
110 bushels an acre. The most
recent Delaware soybean
production estimate was made on
August 1 and won’t be revised until
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December. However, Maryland’s
soybean yield was revised
downward October 1 from 32 to 28
bushels an acre.
As the grain market shifts from
extremely tight old-crop supplies
to a more plentiful new-crop
situation, German says prices are
responding by shifting downward
from previous offerings this
summer and early fall.
With this in mind, he advises
farmers to consider carefully
whether to store their grain for
future sale or sell it now on the
cash market. “Right now,” he
says, “we’re experiencing a very
strong basis in the market. The
strength is coming from < strong
demand from the Soviet Union.
The basis, which we’d have ex-
GOODVILLE On Monday,
Nov. 5, the Red Rose Alliance will
hold a general meeting and
spaghetti supper at the Goodville
Fire Hall, Route 23, Goodville.
Hie supper will be served at 6;30
p.m. The cost for members is
$2.00 for adults and $l.OO for
children 12 years old and under.
For non-members, the cost is $4.00
for adults and $2.00 for children 12
years old and under.
Hugh Kaufman, Assistant to the
Director of the Hazardous Site
Control Division, Environmental
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• Akron, PA 17501 • (71 7) 859-2074 or 733-9196
Red Rose Alliance to meet
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pected to subside by now, got a
boost from the recent downward
revision in the USDA’s crop
production report.”
At current prices, farmers would
lose nearly 20 cents a bushel by
storing corn for March sale, but
the picture could change as the
harvest season progresses. So
German encourages growers to
keep an eye on the market in case a
profitable opportunity emerges.
‘The Basis is likely to weaken
later and this could result in a
lower harvest cast price, making
storage a more attractive alter
native,” he says.
Local soybeans presently worth
$5.98 per bushel will cost about 47
cents to store until March. This
translates into a breakeven price
at that time of $6.45 a bushel.
Protection Agency, Washington,
D.C., will be the guest speaker
during the general meeting, which
is expected to begin at 7:30 p.m.
Kaufman will address the im
pending legislation on en
vironmental issues and the
political impact of these issues.
The Red Rose Alliance formed in
June of 1981 to oppose the proposed
hazardous waste disposal site at
the Narvon Mine in Lancaster
' County, and to educate the public
of the alternatives to landfilling
hazardous waste.
C. M. HIGH CO.
320 Km( St
Myerstown PA 17067
Phone 717 866 7544
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