COLLEGE PARK, Md. - Do
Maryland farmers do as well
financially as their counterparts
across the nation?
The answer is yes, according to
Robert J. Better, agricultural
economist at the University of
Maryland. Farmers across the
state have a debt-to-asset ratio of
less than half of the nation’s
largest operators, he says.
Debt-to-asset ratio is a com
parison between the value of the
total operation and the amount of
money owed on that operation.
Debt management is the key to
Maryland farmers’ fight to keep
ahead of bankruptcy and
liquidation, Beiter adds.
“Steady-as-she-goes” is his
advice on farm credit expansion.
Beiter says farmers in Maryland
and across the country must
carefully scrutinize potential
additions to their total debt since
bankruptcy and cash flow continue
to be major agricultural problems.
“You never get anywhere
without any debt,” he says. “But
the key is not to go overboard.”
Maryland farmers are ap
parently taking his advice. Beiter
says the debt situation statewide is
The last few years have been tough for farmers in south
central Pennsylvania. You’ve had to deal with the deadly
Avian influenza and an unusually dry year that produced low
crop yields. You’ve suffered through low egg prices, reduced
milk prices, and marginal pork prices. And, in general, you’ve
experienced high interest rates.
As a major lender committed to the agricultural industry,
Commonwealth National Bank has witnessed these bad and
difficult times firsthand through many of our agricultural
customers. The pressures brought about by the events of
the past few years have caused many of these customers to
turn to us for help. As a result, we’ve spent a great deal of
time working to get them out of some tight spots. We’ve
restructured loans and, where appropriate, we’ve offered
extensions. In all cases, we’ve worked hard to provide good,
sound advice on the best course of action to follow. In short,
we’ve remained committed.
To some, our commitment to lending may seem to have
waned as we continue our work to help those among you who
need it most. But be assured that our commitment has never
stopped. When you need us, we’ll be there as strong as
ever —with aggressive prudent lending, competitive rates,
and just plain hard, honest work.
Better ag bottom line in Md
slightly better than that across the
country.
Maryland’s net farm cash in
come was up to $266 million in 1982,
Beiter says. But last year’s
drought conditions hurt many in
the industry.
Participation in the PIK
program and fluctuating markets
also affected the distribution and
total of farm income, he savs PIK
HARRISBURG - Penn
sylvania’s commercial red meat
production (dressed weight basis)
during October 1964 totaled 84.1
million pounds, down 15 percent
from October 1983, according to
the Pennsylvania Crop and
Livestock Reporting Service.
Beef slaughter, at 103.1 million
pounds liveweight, was up five
percent from October 1983. Total
head slaughtered was 92,800, up
seven percent, but liveweight
averaged 1,111 pounds, a decrease
of 14 pounds. Veal slaughter was
4.5 million pounds liveweight, up
five percent. Calf slaughter of
It’s simply not true.
Commonwealth National
Bank not committed to
agriculture? It’s simply not
true, and no one knows it
better than I do
Charles F. Merrill
President and Chief Exi
A Commonwealth National Bank
participants and livestock
producers had less financial
problems than grain farmers who
were hit hard by the drought.
Maryland farm assets in 1982
valued approximately $6.7' billion,
with total farm debt in the state
marked at $1.03 billion. Last year’s
total equity-to-asset ratio gave
Maryland farmers a net worth of
85 percent, according to Ticm
Red meat production drops
26,000 head was up two percent,
and the averaged liveweight in
creased five pounds to 171 pounds.
Hog Slaughter, at 38.6 million
pounds liveweight, was down 39
percent from a year earlier. Total
head slaughtered was 161,700,
down 41 percent, but the average
liveweight increased seven pounds
to 239 pounds. Lamb and mutton
slaughter was 1.7 million pounds
liveweight, up 54 percent. The
number slaughtered was 16,200, up
50 percent and the average
liveweight increased three pounds
up 102 pounds.
United States commercial red
Lancaster Farming, Saturday, December t, 1984-A33
statistics. This shows that, as a
group, they are assuming less debt
than they have assets.
Real estate values are an im
portant part of Maryland
agricultural financing, Beiter
says.
“Our land inflation is as good or
better than any other place,” he
says. “That gives us an edge here.
«nt at th» «>nv time, higher land
meat production in October totaled
3.67 billion pounds, up four percent
from October 1983. Beef production
at 2.18 billion pounds was up six
percent from last year. Total head
killed at 3.48 million was up six
percent, and average liveweight
increased two pounds to 1,072. Veal
production, at 45 million pounds,
increased 10 percent from a year
ago. Calf slaughter of 308 thousand
head was up six percent, and
USDA wins court decision
WASHINGTON, D.C.
- The U.S. Ninth Cir
values offer a greater opportunity
to get into debt.”
In 1983, land made up 78.8 per
cent of Maryland’s total farm
assets, with a value of $5.28 billion.
Real estate along has a debt-to
asset ration of 12.1 here'. Although
above the state ratio of 10.4 in 1962,
Maryland’s figures are still well
below the national average.
average liveweight increased nine
pounds to 248.
Pork production totaled 1.41
billion pounds, up two percent
from a year ago. The 8.15 million
head killed was up one percent and
the average liveweight increased
one pound to 244. Lamb and mutton
production, at 33 million pounds,
increased three percent. Slaughter
totaled 608,000 bead, up one per
cent, and the average liveweight
increased one pound to 110 pounds.
cuit Appeals Court has
affirmed a decision by
the U.S. Department of
Agriculture ordering a
$5,000 civil penalty
against G.L. “Bud”
Cozzi, operator of the
Turlock (Calif.)
Livestock Auction, and
limiting the scope of
investigative materials
USDA must reveal
during administrative
hearings.
The case began in 1981
when USDA charged
Cozzi and a livestock
dealer with concealing
their ownership in cattle
sold through Cozzi’s
auction and then
repurchased by the
dealer to fill orders for a
California feedlot.
Cozzi appealed
USDA’s ruling that he
had engaged in unfair
practices by failing to
reveal on bills of sale
that he was sharing in
any profits or losses
with the dealer.
Cozzi argued that the
|5,000 civil penalty was
unfair since his case
represented a change in
USDA policy, that he
was improperly denied
access to a memo by a
USDA auditor which did
not recommend formal
action against Cozzi,
and that USDA should
not have refused to
make its full in
vestigative report
available to the hearing
officer for an “in
camera” review to
determine if it con
tained evidence
favorable to him.
The court rejected
Cozzi’s arguments and
affirmed USDA’s
position that Cozzi had
failed to show that
anything in the file
created a reasonable
doubt regarding his
liability that did not
otherwise exist, and
that Cozzi had a right to
receive only those parts
of the memo which
related to the auditor’s
direct testimony.
Although granting
that Cozzi’s case was
apparently novel, the
court also affirmed
USDA’s civil penalty,
stating that “Cozzi knew
or should have known
that his order
buyer...was engaged in
fraudulent practices. In
light of that knowledge
and Cozzi’s failing to act