fOL. 31 No. 21 ‘Future’ Conference sets agenda for change Best years are ahead, Scranton tells ‘Future’ participants BY THE STAFF HARRISBURG Suits and ties. Flow charts and exhibits. Long range planning and projections of prices, costs and demand. If ever there was a conference that symbolized its subject, it was the ‘Future of Agriculture” Conference Wednesday and Thursday at the Holiday Inn in downtown Harrisburg. The sessions, attended by several hundred both days, ranged broadly over the landscape of issues facing agriculture today. And though the news about prices and the overall outlook for individuals currently struggling to survive was often bad, the overall tone was optimistic and progressive ... a form of proof that, as one participant put it, “the hard times are bottoming out.” Penn State President Bryce Jordan set the stage by quoting a recent lecturer as noting that “agriculture is embarking on the third technological revolution in the 20th century.” Ka' her in this century, he said, agruulture was transformed by the mechanical revolution, which substituted mechanical power for horsepower, and by the chemical revolution, which put a broad range of fertilizers, pesticides and her bn ndes at the average farmer’s disposal. Now, however, agriculture is on the verge of a revolution in both biotechnology and information, once again transforming the Pennsylvania Guernsey breeders convene in Lebanon BY MARTHA J. GEHRINGER UDKANON The Guernsey Association has traditionally held lively state meetings. And this year’s 55 th annual meeting, convened at the Quality Inn here, proved to be no exception. Tin ooint that caused the most discussion was the decision to recluc c the number of voting disti n <, m the American Guernsey Cattle' ’Uib from 15 to 7. Thr redistricting will place Pennsvivania, formerly in a disti u t of its own, in District Two with i mio The concern of this group was that in being grouped with (lino, they might lose some repre^uitation. Pennsylvania is currently second m the nation in Guernsey registrations. However, this redistru ting was done so that each group would contain the same numbu of registrations. This change will require an admc'iment to the constitution *hn h will be voted on by the dun hirs at the national con tention The morning session also con fined lively discussion on the overall state of dairying nation wide, at the conclusion of John R. Moulton’s presentation on the wire of the Guernsey breed. The present situation is a result Five Sections landscape in power, input, labor and management practices. With the industry at such a crucial crossroads, Jordan noted, the conference seemed an ap propriate vehicle to begin mapping out the industry’s future. “The marvelous response we have had to the conference,” he concluded, “is, I believe, a reflection of the deep level of Lieutenant Governor William Scranton 111 provided the closing address at this week's Future of Pennsylvania Agriculture Conference. More than 430 ag leaders attended the two-day event held at Harrisburg's center city Holiday Inn. of financial stress. “It’s real, we’re seeing it,’’ Moulton said. The reasons for this stress, Moulton continued, are too much debt and the difference between cash flow and net profit. Also, for the past 19 years farmers have been living on their depreciation, Moulton ex plained. The magic year was 1967. All support prices have been geared towards that year, Moulton noted. This provided the farmers a false sense of security since that year, while the price of milk was the highest, also had the worst net profit. Management was adversely influenced when many consulting organizations encouraged farmers to add cows to increase cash flow, Moulton stated. He went on to describe this as possibly the worst thing that they could have done. “To be successful one has to look at the net dollar or bottom line,” Moulton continued. “The farmer that will survive is the one that opted for efficiency when his neighbor was out expanding,” Moulton pointed out. The Guernsey breed and all colored breeds are doing well on a net cash basis, and will contmue to do well with good managers, Moulton said. Maintaining, using and Lancaster Farming, Saturday, March 22,1986 concern about agriculture tnat is present in our state.” That response included a variety of luminaries. . . guest speakers from top universities across the country, and leading officials from the state’s educational, business and political establisments. During Thursday’s closing luncheon Lieutenant Governor William Scranton 111 took the podium, .calling for a shift from analyzing good records for finances and production, Moulton noted, are the most important keys to success. Basing management decisions on sound facts from a variety of sources is also critical to the future, Moulton said The development of a positive business attitude and an interest in marketing also are absolutely essential, Moulton added. Agreeing that there are as many ways to succeed as there are managers, Moulton listed several "benchmarks for success” that he has found to be a common denominator among successful farms. A debt load per cow of under $2500 is important for the Guernsey cow to compete with the Holstems on their level. Of equal importance is an income per cow of $2OOO, Moulton said. This can readily be achieved with the Guernsey breed, he continued, provide the total solids advantage and fat dif ferential are utilized. Revenues of $60,000 and production of 500,000 pounds of milk annually per man is necessary for the future, he con tinued. Maintaining an operating expense level of no more than 75 percent of cash income can be achieved with tight management, Moulton added. what he termed over-mterterence by government to a more com petitive, agricultural economy. In order to insure the future of Pennsylvania’s number-one in dustry, Scranton said that the following aspects of agriculture should be emphasized: •Marketing efforts must be intensified locally as well as The business meeting com menced with a report from president Wilmer Campbell. He asked the group, "Are we going to flodd the market with inferior quality milk or offer the best possible, such as Golden Guern sey?” “As Guernsey breeders we need to become aggressive in the market place. We must sell the Guernsey cow and her product. We must convince breeders that quantity is not the answer. Quantity bred in and quality bred out has only contributed to our surplus.” Campbell said. Emphasizing the need for quality Guernseys, he continued, “I am convinced there has never Maryland tobacco auctions begin The Maryland tobacco auction season opened officially on Tuesday with an address by Maryland Secretary of Agriculture Wayne A. Cawley, Jr. at the Marlboro Tobacco Market located m Upper Marlboro. Beginning this week, Lancaster Farming will carry Maryland auction reports on page Al 7. Prices and volumes quoted are for three sales conducted at each of eight locations, for a total of 24 individual sales. All tobacco sold is Maryland Type 32. $7.50 per year regionally and abroad. •Productivity must be unproved, not just in yields, but also in the technologies and techniques necessary to lower the cost of inputs. •The ag sector must remain divers and flexible enough to react quickly and effectively to com petition throughout the country. •Research The state’s com petitive edge can only be main tained by pushing forward the bounds of knowledge. •Value-added products An industry survives by learning how to add value to its basic com modities, Scranton said. •Farmland preservation Steps must be taken to insure the preservation not only of prune acreage, but of soil nutrients and tilth, as well. The Lieutenant Governor offered the Chesapeake Bay program as an example of the progress possible when divers sectors of society, in this case en vironmentalists, educational in stitutions, government and the farming community, unite in pursuit of a common goal "It’s a model that clearly works, and we ought to be implementing it in other areas as well,” he said. "I think some of our best years are ahead of us in agriculture,” Scranton concluded Additional coverage of the ‘Future of Pennsylvania Agriculture' Conference begins on page A 22. been a better opportunity to breed good quality Guernsey cattle than today." Campbell announced an agreement has been reached to sell the Guernsey Sales Pavilion Final settlement is expected sometime this summer. Ruth Ann John, assistant business manager, reported that the sales for this year were encouraging with increased averages on cows and bred heifers as compared with last year Also there have been many requests from non-Guernsey breeders for Guernsey cows, she added The shows the past year were well represented in every class on (Turn to Page Al 9)