D6-Lancast«r Fannins Saturday, May 17,1986
BUSINESS NEWS...
Baltimore Farm Credit
Reports First Quarter Profits
BALTIMORE, Md. - The Farm
Credit Banks of Baltimore, the
major agricultural lender
throughout the mid-Atlantic
region, released its first quarter
financial figures reflecting
positive earnings despite the
national agricultural turmoil.
First quarter earnings for 1986
show a nearly $8 million profit with
$4.2 million of those profits applied
to loss sharing assistance for other
financially troubled districts in the
nationwide Farm Credit System.
Net earnings for the Banks were
reduced to $3.4 million as a result
of the loss sharing plan, as com
pared to first quarter 1985 net
earnings of $lO million.
Delinquency rates showed a
slight increase during the first
quarter of 1966 as compared to a
similar period in 1985. FLB farm
loan delinquencies rose from 5.1
percent to 5.3 percent of the
number of loans outstanding while
PCA delinquencies increased from
3.6% to 4.3% of the number of
borrowers.
Baltimore Banks’ President
Gene L. Swackhamer pointed to
Deutz-Allis
Front-Mounted Hitch
MILWAUKEE, Wise. - Deutz-
Allis is the first North American
farm machinery company to in
troduce a front three-point hitch
and PTO —known as Twin-Power.
Twin-Power allows a tractor
operator to complete more than
one job per field pass because field
equipment can be mounted on the
front, a& well as the rear of the
tractor.
“Farmers now have the option of
purchasing a Deutz-Allis 6200
series tractor with a dealer
installed front three-point hitch
and PTO or adding the equipment
later because each 6200 series
tractor is engineered and built to
accept Twin-Power,” says Bob
Mcllrath, Deutz-Allis tractor
product manager.
Used for many years in Europe,
the numerous benefits of a front
PTO and three-point hitch include
reducing time, fuel and labor by
reducing trips across the field; less
soil compaction; and better
visibility for field equipment.
With a -front Jhref-point hitch and PTO farmers can com
plete more than one job in a single pass.
the strengths of the borrowers as
well as those of the district that
keep the region’s farming com
munity from being affected as
severely as some of the
agricultural communities in other
areas of the nation.
“The American farmer and the
Farm Credit System have not seen
r the end of the complicated
problems facing agriculture
during this era of adversity,”
Swackhamer said. “The Baltimore
District has a relatively stable
operating position with a record of
quality borrowers, a strong capital
base, and our lean and cost
effective management of financial
services gives us the stabilizers
necessary to see our way through
these troubled times.”
One of 12 nationwide districts of
the Farm Credit System and only
one of two districts showing a net
operating profit in 1985, the Farm
Credit Banks of Baltimore serve
farmers and agricultural
cooperatives in Delaware,
Maryland, Pennsylvania, Virginia,
and West Virginia as well as the
Commonwealth of Puerto Rico.
Introduces
A front three-point hitch and
PTO can combine many field
operations, and it’s especially
beneficial when making hay.
European farmers have used a
front-mounted mower combined
with a rear side-offset mower to
cut hay twice as fast, reducing
weatherwears further.
“With this set up, or a rake on
the front and baler behind, tractors
are essentially turned into self
propelled hay machines,” says
Mcllrath.
There are many applications for
Twin-Power. Innovative farmers
can incorporate herbicide up front
and run a cultivator behind the
tractor, saving valuable field
preparation time and fuel.
Other applications include tilling
and planting, stalk cutting
followed by chisel plowing,
snowblowing and scraping all
with a single pass.
“Using a front PTO and 3-point
hitch also better utilizes the
tractor’s horsepower,” Mcllrath
says.
New Farm Credit Programs
Offer Interest Rate Relief
McLEAN, Va. - Farm Credit
System institutions could offer
lower interest rates to their
borrowers if they would implement
new interest rate programs, ac
cording to its federal regulator, the
Farm Credit Administration
(FCA).
The agency has approved a
number of programs that enable
Federal Land Banks (FLBs) and
Production Credit Associations
(PCAs) to provide interest rate
relief for farmers without causing
further financial damage to the
institutions. Unfortunately, too few
such programs are being used, the
FCA says.
Specifically, the FCA is en
couraging the immediate use of
differential interest rates and
match funded fixed rates.
Under differential interest rate
programs, low risk, low service
loans are charged a lower rate of
interest. These programs are
intended to reward borrowers
whose loans are sound and less
expensive to service. For example,
in one FLB the rate for such
customers is 1.5 percent lower than
the base loan rate.
Match funded loans are tied to a
RACINE, Wise. - Case IH,
citing excessive manufacturing
space and continuing soft farm and
construction machinery markets,
recently announced tentative plans
to close manufacturing plants in
Terre Haute, Indiana; Bettendorf,
Iowa; and Rock Island, Illinois,
which employ about 1,500.
“Eliminating surplus
manufacturing space is essential
to the ability of Case IH to deliver a
full line of agricultural and con
struction equipment products at
competitive prices,” explained
Jerome K. Green, president of the
Tenneco Inc. unit.
“The tentative decision to close
these plants underscores our
continued determination to lower
costs and adapt to current market
conditions,” he added.
The tentative plan, if im
plemented, calls for closing the
Terre Haute facility in the third
quarter of 1987, the Bettendorf
plant in the fourth quarter of 1987
and Rock Island in the first half of
INDIANOLA, lowa - In con
junction with Herschel Cor
poration’s Centennial, “Serving
Agriculture for 100 Years, 1886-
1986”, the company has presented
a plaque to Paul B. Zimmerman,
Inc., of Lititz, in appreciation of its
many years of association with
that company.
Founded in Peoria, Illinois, the
Herschel Company was a pioneer
in the manufacture of cutting and
repair parts for mowers, reapers
and binders. The business grew
rapidly and was soon recognized
by leading implement manufac
turers, distributors and dealers as
a leader in the manufacture of
cutting parts.
By the early 1900’s the company
had expanded its product line and
offered a variety of agricultural
replacement parts to dealers from
Nebraska to the east coast. During
this same period and through the
1950’5, Herschel wps also one of the
largest manufacturers of lawn
mowers in the United States.
In 1974, the company moved into
modem office, manufacturing and
warehousing facilities on 25 acres
in Indianola, lowa, and today has
salesmen calling on implement
dealers throughout the United
Case IH Announces
Plant Consolidation Plan
Honors Lancaster Co. Dealer
Herschel
A
The Farm Credit System
particular bond issue, which
system institutions sell to raise
their loan funds. The banks
recently issued a five-year bond
priced at 7.55 percent. Even adding
a two percent spread for operating
expenses and loss reserves, the
banks could have offered a five
year loan for 9.55 percent. One
FLB, in fact, is offering an eight-
year loan at 9.05 percent to
selected customers. Another is
offering a three-year fixed rate
loan at 9.6 percent.
While being able to offer com
petitive interest rates is the
primary purpose of these new
programs, a recent agency survey
showed that rates charged by the
PCAs, the system’s short- and
intermediate-term lenders, are
1988. It would reduce Case IH
North American manufacturing
space by 25 per cent.
The company expects to move
production from the affected
facilities to other company
operations in Burlington, Iowa;
East Moline, Illinois; Racine and
Wausau, Wisconsin; and Wichita,
Kansas.
Though some employees would
be transferred to new locations, it
is too early to determine the exact
number of jobs that would be
retained, Green said. Never
theless, the work force reduction at
affected locations would be
significant, he noted.
Closing the three plants would
leave Case IH with nine
agricultural and construction
equipment manufacturing
facilities in the United States and
Canada.
Tentative relocations of
production include:
• Terre Haute, 460 employees;
States with representation in
Canada and other foreign coun
tries. Sales offices and warehouses
are located in Minneapolis, Min
nesota; Dallas, Texas; In
dianapolis, Indiana; and
Stein Joins
WILLOW STREET - John S.
Garner, sales manager for
CENTURY 21 Emory D. Wagner
Co. Realtors in Willow Street, has
announced the appointment of
Richard B. Stein to the firm’s
marketing staff at 2421 Willow
Street Pike.
Stein previously worked as sales
manager of Carnation Country
Store, Quarryville, working with
the farm community in Lancaster
County. He will be working mostly
with farms and rural properties,
and looks forward to continued
association with his former clients
and others in helping to fill their
real estate needs.
Stein has completed several
Century 21 training courses which
enable realtors to better service
home sellers and buyers. He
resides with his wife, Ruth, and
their four children.
Farm
Credit
News
competitive in almost all areas of
the country. The agency believes
rates charged by the Banks for
Cooperatives, which make loans of
all types to farmer owned
cooperatives, are also competitive
in today’s market. Due to their
predominantly longer-term bond
portfolios, FLBs, the system’s
long-term real estate lenders, are
facing the most rate competition.
The FCA believes the system has
the opportunity to develop well
managed interest rate programs
that can assist in bringing some
interest rate relief to its
borrowers. Combining these
programs with tight management
of its own cost of delivering credit
services, the system can improve
its competitive position without
adding to its financial problems.
Wheel loader production would be
transferred to Wausau while large
loader/backhoe operations would
move to Burlington. Burlington’s
skid steer loader production would
be transferred to Wichita. Terre
Haute became part of Case in 1966.
• Bettendorf, 630 employees;
Production of cabs for agricultural
and construction equipment would
go to East Moline. Crawler dozer
and loader production would be
moved to Wausau. The plant
became part of Case in 1947.
• Rock Island, 450 employees
Production of transmissions and
other components would be moved
to Racine. The Rock Island facility
became part of Case in 1937.
Production of some components
and finished goods will be
scheduled to go to Case IH plants in
Europe and Brazil.
Headquartered in Racine, Case
IH is a worldwide manufacturer
and marketer of agricultural and
construction equipment.
Harrisburg, Pennsylvania.
Long recognized for its quality
and service, Herschel is a leader in
the development and manufacture
of sickle sections, complete
sickles, component cutting parts
and tillage tools.
Realty Firm
* #
ill
yd
lichard B. Stein