v NEWARK, Del. - Farmers who
plan to apply for credit later this
winter should take steps now to
develop a financial prospectus
they can use when contacting a
lender. Preparing the prospectus
will help them become better
business managers and also speed
the loan application process.
“Whether you’re applying for a
new loan or renewal of an existing
one, it’s best to present the
potential lender with a properly
prepared financial prospectus,”
says University of Delaware ex
tension economist Gerald F.
Vaughn.
For many years, agricultural
loans were handled through
arrangements that continued
indefinitely without serious
examination of the basis for credit.
Today’s financial conditions have
brought that practice to an end.
In most cases now, when a
farmer applies for credit the
lender wants to know the recent
history of the farming operation,
its current financial condition, the
nature of the operation, the far
mer’s management goals and
future plans, plus the type and
amount of credit needed. This
information is used to evaluate the
applicant’s needs and capabilities,
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February 9 - February 14
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Financial Records Expedite Farm Loan Approval
including the ability to repay the
loan.
Meeting these requirements
means the application process
takes much longer than before.
“Well-kept farm financial records
can ease the task,” Vaughn says.
“Without such records you may
have to put in many hours of
concentrated effort to complete an
accurate balance sheet and cash
flow projection. Assembling poorly
kept information can take con
siderable time just when spring
work needs to be done.”
The economist suggests that, to
avoid future delays when applying
for credit, farm operators use
housebound days this winter to
prepare a financial prospectus.
“Start by assembling and
analyzing the basic information on
your farm business and put it in
good written form,” says Vaughn.
“Then, when the time comes to ask
for your loan, plug in current
financial information, make copies
and you’ll be ready to talk to a
lender.”
The economist says to include
the following basic information in
your prospectus:
• A brief description of the
farming unit (the people, crop and
pasture acreages, livestock
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■ INTERCOURSE, PA
numbers);
• Land tenure information, in
cluding acres of owned and rented
land, rental rates and the nature of
rental agreements, ASCS crop
base and yield data, and in
formation about any significant
changes in land tenure during the
past several years;
• Goals and plans for farming
operations and family life during
the next few years;
• Copies of balance sheets, in
come tax returns and inventory
records for at least the past three
years. If you don’t have inventory
records, be sure to include in
formation from your records that
indicates the extent to which you
have held over inventory each
year.
Shortly before contacting
prospective lenders, update your
prospectus by adding the following
information to it:
• A current balance sheet;
• A crop plan and (if ap
propriate) a livestock plan for the
coming year;
• A cash flow projection based on
these plans;
• A current income tax return;
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Maxatawny, PA
Ph: (215) 683-7252
M. WEAVER ft SON
N. Groffdale Rd.
Leola, PA 17540
Ph: (717) 656-2321
R.W. KELLER SALES
Perkasie, PA 18944
Ph: (215) 257-0101
MARLIN W. SCHREFFLER
Pitman, PA
Ph: (717) 648-1120
• Any other items known to be of existing one,” concludes Vaughn,
interest to the lender. ‘‘a well-prepared financial
...... prospectus can show potential
Whether you’re applying for a lenders that you understand your
new loan or seeking to renew an farm business.”
Fluorescent Lights Reduce Costs
NEW BEDFORD, Mass. - In
tests conducted at a North
Carolina layer facility, American
Light’s Litex poultry light reduced
annual lighting costs and proved to
be resistant to corrosion. New
developments have also corrected
light distribution problems, ac
cording to the company. The tests
were conducted by North Carolina
State University.
Two identical curtain-sided,
double-decked cages, for a total of
32,000 bird houses, were used for
the test. Both time clocks were set
at 17 hour photoperiods. All bulbs
were 9.5 feet from the floor and
spaced at 10 feet between bulbs.
Separate power meters were wired
into the lighting circuits of each
house. Light intensity was
essentially equal.
The fluorescent lighting system
consisted of 105 nine-watt
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LEBANON VALLEY
IMPLEMENT CO.
700 E. Linden St.
Richland, PA
Ph: (717) 866-7518
GUS FARM EQUIP. INC.
Rt. 616, P.O. Box 85
Seven Valleys, PA 17360
Ph: (717)428-1967
S.G. LEWIS AND SON
West Grove, PA
Ph: (215) 869-9440
869-2214
MASSEY-FERGUSON
ticket to
M-F 1020
fluorescent fixtures and a
photocell circuit to turn the lights
on The incandescent lighting
system was made up of 105 sixty
watt incandescent bulbs controlled
by a solid state light intensity
controller which restricted the
light intensity and power usage of
the system in periods when less
than full wattage was required.
Twenty-week-old birds were
pic ked in the houses for a test
period of 46 weeks. Conclusions
show that the performance of the
two houses was essentially iden
tical which means the light source
had no influence on the per
formance of the hens.
The test did show that the
fluorescent system required less
electricity. The cost of the bulb and
ballast fixtures pay for themselves
in 3 to ten months, depending on
the length of daily usage and the
wattage of the units replaced.
for better traction
ABRACZINSKA’S
FARM EQUIP. INC.
RDI, Catawissa, PA
Ph; (717) 356-2323
(South on Rt. 42)
LAWN CARE OF PA
Martindale, PA 17549
Ph: (215) 445-4541
ARNETT'S GARAGE
Rt. 9 Box 125
Hagerstown. MD
Ph: (301) 733-0515