Farmers keep hearing about
good financial management is a
must for survival. But what does
that term really mean?
Good financial management
begins with a thorough un
derstanding of your farm business,
according to University of
Delaware extension economist
Gerald F. Vaughn.
“Top financial managers an
ticipate and plan the events that
shape their business success,”
Vaughn says. “Average managers
watch as events affect their
business; then they react. Weak
managers have little un
derstanding of why events affect
their business. Because they have
difficulty analyzing their situation,
they don’t know how to use the
factors under their control to solve
problems.”
Luck is an element in all
businesses, the economist says.
However, overall success is likely
to come to those who anticipate
events, understand the
management tools and indicators
of their business, and who take full
HIGH PRESSURE WASHING
JIXwJl 1 Jr.
• Poultry Houses • Hog Units
♦Dairy Borns eVeal Pons
For Quality & Service We Have 4 High Pressure
Washer Trucks
For Tough Cleaning Jobs
(2) - 3000 Lb. Portable Washers
MAYNARD L. BEITZEL
Witmer, PA 17585 717-392-7227
Spraying Since 1 96 1
CALF KENNELS
Same Advantages As Hutches, w/Inside Feeding
Compare the Stoltzlus
i Woodwork Calf Hutch
Lifting Hook
for easy handling ne Sheet
Rear Vent (Option) N Galvanized
I Option I \
1
Sturdy 2x4 conxtnictloD
Treated ikldi
exterior plywood
ALSO AVAILABLE: TRACK FOR FASTENING CALVES'
CHAIN TO CEILING OF HUTCH
STOLTZFUS WOODWORK
W,
BY:
Economic Sense
control of these factors.
“If you want to become a better
financial manager, start by
figuring out where your farm
operation stands compared to
others in the same business,”
. Vaughn says.
To determine the financial
health of your farm operation, the
economist suggests you ask
yourself five critical questions:
• Do you have too much debt for
today’s economy.
• Can you cover your current
obligations?
• Do you have normal profits
compared to other producers?
• How much are you getting
ahead or falling behind? >
• What are - the financial
strengths and weaknesses of your
farm business?
More than ever farm lenders are
using financial statements,
financial ratios and key
management indicators to
evaluate credit worthiness. The
emphasis has shifted during the
1980 s from collateral to earned
profitability and cash flow. In-
Tilt Oat Feeder for/
easy access
Rt. 897 North - Gap, PA 17527
717-442-8972
Key To Good Management
creasingly, credit worthiness is
being used as the basis for loan
interest rates.
This new emphasis means
producers must be able to convince
lenders that they have marketing,
financial and production
management skills. To be worthy
of credit, Vaughn says farmers
today must have a financial plan
for repaying from their productive
earnings whatever they borrow.
Top farm financial managers
are familiar with the indicators
lenders use. These producers know
how their business stacks up
against the competition and are
aware of available corrective
options.
Top managers calculate their
own indicators and develop their
own cash flow plans, the economist
says. They can walk into the bank
and show their lender that they’re
on top of their financial position
and have sound marketing and
financial plans.
le
ting
Simple, efficient
eyebolt and pin
Delivery Anywhere
(Americas Oldest)
(717)687-7631y
EAR CORN
Paying Top Prices For
Good Quality Ear Corn
• Wet or Dry
• No Quantity too large
or too small
• Fast Unloading -
Dump on Pile & Go
• Easy access - 2.2
miles off 283 bypass-
Manheim, Mt Joy
exit
• Daily Receiving 7:30
A.M. to 5 P.M. - un
loading evenings &
Saturdays by appt.
• Trucks available for
pick up at your farm.
Call Anytime For Price
717-665-4785
JAMES E. NOLL GRAIN
“Most lenders are willing to
explain their credit evaluation
criteria,” Vaughn says. “If ap
proached in a reasonable manner,
they may even help you analyze
your farm business to see how you
might improve your financial
Paradis*,Pa,
position."
For more information on farm
financial management, Delaware
farmers are encouraged to contact
their county extension office in
Newark (451-2506), Dover (697-
4000) or Georgetown (856-7303).
010 ANTIC
C * i,LieT,o,,
'of \ Lancaster
Farming's
3 CLASSIFIEDS
Three Toulouse ganders.
Two are one yr. old, one
IH 4R #56 planter; older, $lO ea. Nor-
Hesston PTIO haybine; IH thampton Co. 215-588-
784 tractor; 420 plow; 3 7191
flat wagons. Snyder Co.
717-743-6222
130' auger 4" diameter
with drops and shut-offs,
JD «4 grass mower; NH used for filling hog
404 crimper with or feeders, $2OO. Lane. Co.
without 24HP engine. A J B. 717-354-5092.
Zook Bwna Vis Rd RR I, J 0 #45 loaderi
Box 95. Gap, PA 17527. Troy-Built tiller
S3O Bobcat. Cumb. Co.
717-532-7778.
RODENTS carry diseases which
can endanger the health of your
poultry flocks. Your business is
raising them. Ours is protecting
them.
We Specialize In
Sanitizing And Disinfecting
Since 1928 2211 W
Pest control is too important
to trust to anyone else
Jake, did you mark your
calendar for the OPEN HOUSE
at Binkley and Hurst Bros, on
TUESDAY, FEBRUARY 17th?
You bet I did, Luke... I caiTN
hardly wait
YES...I hear the program
' have planned is better than
r er! And I also heard that J
irting on Open House Day (
icy will be offering BIG ’
(COUNTS on oil, filters and
s, continuing til Feb. 28th.
io you know what the;
$150;
Pony
Model, nice, $7OO. Bucks.
After 6,215-297-8646.
Houses
Lancaster, PA
397-3721
Lewistown, PA
248-0983
State Collei
’’rej
■ering??
[6, PA