Whole herd sellout? my dairymen are trying to le whether this would be a time to throw in the towel, up the boots, and quit while Agway announces a breakthrough in daily heifer management Working for people who work the land Thanks and Congratulations Mr. & Mrs. Chris Pettit & Family On Their New Work Shop And Storage Building DESIGNERS & BUILDERS of SYSTEMS RD 4 EPHRATA, PA 17522 Located In Farmersville Phone 717-354-4271 they are still ahead. If you are simply intending to stay in the business of milking cows, you can ignore the trauma of making the of Mt. Holly, N. J. decision. But if you are in that group who are contemplating the advantage or disadvantage of selling out, the pencil work has already begun. The complexity of such a decision is enormous, but must not be treated lightly. Just selling out in normal times is a heavy enough responsibility, but the con sequences of participation in the “Milk Production Termination Program” requires the assembly of lots of facts, and a complete analysis of the ultimate impact on you and your family. " The problem surrounds the BID price for your base amount of milk There must be a clear un derstanding of what the base period is, and the penalties and restrictions resulting from the decision to bid. Every case has its own set of variables that must be built into the complex formula, so that it is hard to propose a hypothetical solution to guide an *o Stockmix (Rm) Seated with Rumensin* 10% Stockmix (Rm) medicated contains Rumensm It is designed to improve average laily gam in dairy heifers weighing more than fOO pounds body weight esearch at the Agway Farm Research Center, ig Rumensm to dairy heifers improved feed icy by about 12%, tended to increase average lain by more than 9% and reduced feed cost wnd of gam by nearly 8C lanagmg your dairy heifers for faster growth jher profits with 10% Stockmix (Rm) ited it Agway stores le in 50 pound sacks in any quantity to FEATURES • Pole Barn Construction • Roof Trusses 4’ On Center, Which Allows Heavier Snow Load. • Painted Steel Roof And Siding. individual. The bids could range from $5 a hundred pounds to $5O. And five dollars might be high for you, and fifty dollars could be too low for your neighbor. The restrictions on the use of a farm and facilities, as well as on the retiring farmer, are sub stantial Clearance and cooperation must be obtained from all creditors, lenders, and lan dlords or prospective buyers. The impact of those restrictions on the family must be considered. Alternatives to dairying for the next five years or more must be confirmed, or at least sought seriously Cash cropping, or livestock enterprises other than dairy, will be common. Will they be profitable enough to provide a decent living for the family’ Off farm work may be more desirable, either full-time or as a supplement to farm work A bid must have a built in buffer for simply sur viving. FARM / * v ENTERPRISE |* 0W * Y J SERVICE '• % Let Our Experience Work For You In 1986 For All Your Farm Building Needs, Large Or Small REYNOLDS WHaaJI & SIDING REYNOLDS ALUMINUM Lancaster Farming, Saturday, February 22,1986-A35 Debt load is a major con sideration. Obligations must be satisfied, either by liquidating the debts or arranging for a satisfactory method of continuing payment. Lenders must be con sulted and an understanding reached between lender and borrower. If the debts are low, it should be easy to arrange. Heavy debts will be tougher to negotiate, especially if the debt to asset ratio is close. The bid would have to be very high to cover it. Another major consideration is the TAX CONSEQUENCES of a whole herd sellout. Most dairy farmers have enough tax write-off to keep income taxes to a minimum in their ordinary operations. They are not ac customed to paying heavy annual income taxes, and are not thoroughly acquainted with the difference between ordinary in come, and a large, lump sum that would accrue from a sell out. Even if a large portion of it must go directly to creditors, there is still a heavy tax liability according to law It must still be paid, and should be included in the bid price necessary for participation in the program Before submitting a bid, you should consult a Professional Tax Expert and the tax consequences carefully computed The unac customed shock of a substantial tax bill on top of the drastic change in life style could be devastating Under some circumstances, a well calculated and acceptable bid could be a substantial incentive for participating in the program, and provide a safe and smooth way to ease out of the business. Some will do it, and laugh all the way to the bank But they will be the ones who did their homework beforehand, and didn’t wait for surprises Your County Extension office is equipped to help with the figures A well thought out Computer program has been developed to handle them. But it is up to you to supply the proper data, and to check it for accuracy Then trust the figures, and act accordingly Meeting set in Schuylkill County SCHUYLKILL HAVEN - The Schuylkill County Cooperative Extension Service, in cooperation with several agri-business com panies, has planned a very in teresting and educational program to provide up-to-date information on crop and farm management practices. The program will be held from 9 a.m. to 3 p.m. Thur sday, March 6 in the Student/Community Activity Center, Penn State Schuylkill Campus, Rt. 61, Schuylkill Haven. Dr. Douglas Beegle, Penn State Agronomy Specialist; will discuss Nitrogen Fertilizer Management and Importance of Corn Starter Fertilizers; Dr. Joseph McGahen, Penn State Agronomy Specialist, will discuss Corn Production - Back to Basics and The Affect of Com Planting Dates; Dr. Dennis Calvin, Penn State Extension Entomologist will discuss Corn Insect Pests; the 1985 Farm Bill will be presented by Terry Stehr, USDA, ASCS Office; and J. Allan Shoener, County Agent - Agriculture will discuss Hedging as a Marketing Tool. Attendance at this clinic will qualify you for recertification of your pesticide applicators license. Reservations are required by Thursday, February 27, 1986. For your reservation contact the Schuylkill County Extension Service, P.O. box 250, Schuylkill Haven, PA 17972 or phone (717) 385-3431. For further information contact J. Allan Shoener, County Agent - Agriculture at the Schuylkill County Extension Office
Significant historical Pennsylvania newspapers