Pennsylvania
Livestock Auction
Weyeeberfc Pa.
Than* May 27, 1993
Report SnppHod by Auction
CATTLE: SL. COWS: UTILITY A
COMMERCIALSO.OO-57.50, CUTTER A
BONING UTILITY 47.00-53.00 CAN
NER A LOW CUTTER 42.00-51,00,
SHELLS 42.00 A DOWN. BULLS:
YIELD GRADE 1 1500#-1870#
58.50-74.25; YIELD GRADE 2
1000#-1400# 48.00-67.50.
FEEDER STEERS: MAL-1 300-500#
77.00-106.00; 250-280# 85.00-11X00, M
900-1000 60.00-76.00. HEIFERS M
l&L-l 300-500# 70.00-97.00; L-l
Financial Analysis
From A Lender’s Perspective
Editor's Note: This is the last of a seven part series to explain how
Farm Credit analyzes farm and ranch businesses.. A different aspect
of financial analysis is addressed in each issue.
Off-farm income stability for
producers and lenders
As agricultural earning opportunities
fluctuate, farm program payments de
crease, and costs of living increase, many
farmers and ranchers and their spouses are
looking at the benefits of off-farm income to
help them maintain a consistent life-style.
Off-farm income can provide not only addi
tional income and peace of mind but also
important medical, insurance and retirement
benefits.
Lenders also see the advantages of off-farm
income to a customer's loan, as it generally
improves the ability to repay proposed
financing.
What constitutes off-farm income
Off-farm income consists of any income not
received from the producer's farm operation,
including:
• salary received working for another
farmer/rancher;
• salary from a pan- or full-time job in a
related or separate industry by either
spouse;
• salary or profits from a closely held
business; and
• investment income.
How a lender evaluates off-farm
income
Lenders will consider many factors when
reviewing off-farm income, such as:
Employment verification Lenders will
verify the source and amount of off-farm
income. If the income comes from another
job, an employment verification form will
be sent to that employer. Questions
pertaining to salary, length of tenure, and
prospects for continued employment will
be asked and evaluated. Lenders are
interested in the stability of the income
source,
Income amount Income is viewed in
relative terms. For example, off-farm
income of $20,000 generally has a greater
impact on a part-time operation grossing
$50,000 than on an operation grossing over
$500,000.
Commission or fluctuating income
Since this income tends to be less reliable
and more volatile (also possibly more
lucrative) than salaried positions, lenders
will rely on an average amount over a
three- to five-year period. Normally,
neither the highest nor the lowest income
year will be considered representative of
expected income.
Part-time farm income Part-time
farmers may choose to live>in a rural
setting for a variety of reasons. Lenders are
40M901 51009X00. BULLS MAL-1
300420# 58.00-94.00.
CALVES: VEAL.. PRIME
95.00- CHOICE 74.00-100.00;
GOOD 60.00-72.00. .
FARM CALVES; #1 HOLSTEIN
BULLS 90-120# FEW 80.00-125.00; #2
HOLSTEIN BULLS 80-100* PEW
75.00- BEEF X BULLAHFRS7HD.
85.00-
HOGS: BARROWS * GILTS #l-2
210-255# 45.00-48.Sa #2-3 255-280#
37.50-45.00; SOWS #l-3 300-500#
39.0041.50.
FEEDER PIGS: 1-3 25-35#
15.003a00/HO.
LAMBS: HIGH CHOICE 55-75 LBS.
65.00-82.00; CHOICE 90-105#
able to loan funds even though off-farm
income may be the primary source of
income. In addition, off-farm income may
be considered less volatile than certain
fanning enterprises.
• Improved repayment margin
Off-farm income may provide the primary
repayment source for residence, vehicle or
education loans, or other consumer
purchases. This may provide comfort to
' the lender as the margin for repayment is
improved. For example, if a farmer has
off-farm income of $20,000, and his farm
has projected earnings of $5,000, the total
amount available for loan repayment is
$25,000 versus $5,000 a more comfort
able margin.
Reduced borrowing need — Because
off-farm income would provide additional
funds, the farmer may have less need for
financing. For example, for a customer
who has $lOO,OOO available collateral, a
lender might typically loan $70,000,
leaving a $30,000 “buffer.” Off-farm
income of $20,000 may result in a need to
borrow less, leaving a larger “buffer.”
More favorable interest rates
Improved repayment or collateral margins
likely will allow lenders to provide more
favorable interest rates, because lower risk
to the lender generally equates to a lower
interest rate for the customer.
Considerations prior to seeking
off-farm income
Before the decision is made that off-farm
income is necessary or desirable, several
questions must be answered:
Is time available for either spouse to
pursue such a commitment? Will the time
commitment detract from the farm
program?
Will there be additional costs that must be
incurred, i.e.. vehicle, child care, etc.?
If it's an owned, off-farm business, will
there be an increase in capital require
ments in the future?
Will there be potential family stress by
being away from the farm, possibly even
at night?
Does the off-farm income strengthen your
ability to repay debt?
In the proper context, off-farm income can
greatly improve a farmer’s bottom line,
especially for operations grossing under
$250,000 per year. While off-farm income will
not completely offset the need for borrowed
funds, given the capital requirements of many
farming operations, it can reduce the risk of
financing for both producers and lenders.
7000-71.00. FEEDER LAMBS GOOD
3350-7000; HWBS 13.00-34.00.
GOATS; LARGE 33.00-70.00/HD.;
MEDIUM 23.00-45.CWHD.: SMALL
1050-I9.OCVHD.
HORSES: 43.00-70.00, PONIES
20.00-48.00.
Shenandoah
Valley
Livestock
HarriMbmt. Va.
May 22, 1*93
wppßaS by aMtfaa
STEERS: MAL-1 300-300 LBS.
M.OO-114.00; 300-700 LBS. 83.0CM00.00;
700-1000 LBS. 73.00-1450; HOLSTEIN
300-300 LBS. 70004350
FEEDER BULLS: 300-300 LBS.
9000-11000 300-700 LBS. 0000-9350
700400 LBS. 7X004250
HBTORS: 300-300 LBS. 8650-9450;
300-700L85.77.00-90.00;700-1000LBS.
6150-7650
STOCK COWS; BEEF 973.00 AND
DOWN; BABY CALVES, BY THE
HEAD, 7350-12350-16350
SLAUGHTER COWS TREND: UTILI
TY AND COMMERCIAL 2-4
4850-3350; CANNER AND CUTTERS
1-3 4050-47.73.
SLAUGHTER BULLS: 395043.30.
LAMBS: BLUB O HIGH CHOICE
AND PRIME 71.00; RED O CHOICE
7455; FEEDER LAMBS CHOICE 80.00;
SLAUGHTER EWES 12.00-23.73.
SOWS: 1-3 3650-38.00
New Holland Horses
N«w Hoßaatf Saha Stabha
Naw HoHaad, PA
Moaday, May 24, 1993
Sap yMM By Aadhai
338 HEAD. MARKET STRONGER.
WORK HORSES 89050-133000.
DRIVING HORSES 61350-117350
RIDING HORSES 373.0042350
Public Auction Register
Ctorini Date Monday 5:00 P.M.
of each week'* publication
MAY
SAT. MAY 29- SAM, Anti
ques, Glassware, Furni
ture, Tools, Air Compres
sor, Farm Collectibles, Car
riage, Market Wagon And
Cart. Located At 2956
Church Road Bird-In-Hand,
Pa. Route 340 East Of Lan
caster Past Bird-In-Hand
To N. Weavertown Road.
Turn Left IV4 Miles To
Church Road. Follow Auc
tion Signs. Terms By,
Melinda F. Petersheim.
Ron Funk & Gordon
Raesler, Aucts.
SAT. MAY 29- 10AM, Real
Estate, Household, Anti
ques. Located In West Chii
llsquaque Township,
Northumberland Co. In The
Village Of Mon tan don, PA.
From Route 147 Go West
On Route 45 To Blinker
Light And Turn Left To Auc
tion Or From Lewisburg Go
East On 45 To Blinker Light
And Turn Right Watch For
Auction Signs. Spurgeon
W. Reichsnbaugh, Estate.
James C. Young & Terry R.
Ranck, Aucts.
JUNE
THURS. JUN. 3 - S:3OPM,
Antiques, Collectibles &
Furniture. Located At Little
Haps Action Auction, In
The Rt. 22, Marketplace
(Ollies East), App. 8 Mi.
East Of Harrisburg. John &
Tom Golden, Aucts.
SAT. JUN. 5 - 10:45AM
Approx. 250 bank vehicles.
Keystone Public Auto
Exchante, Rt. 22/322
Between Dauphin & Clarks
Ferry Bridge. Kerry Pae,
auct
Campbelltown
Volunteer Fire Company
3 Miles East of Hershey on Rt. 322
“Swing to the Nashville Beat 99
Saturday,
i:
■■■■■
Rain or Shine - Bring Your Own Lawn Chair
Donation $5.00 Under 16 Free
Show Times: Local Band • 7:00 P.M. 4 9:45 P.M.
Feature Star • 8:00 P.M. & 10.30 P.M.
'&At
BETTER REENG: tOIOOO-USDuOOI
RBOIITBRBD RIDING
99000-2000011
KILLERS LIGHTWEIGHT
373.00-700.00: HEAVYWEIGHT
•9000-109000 FEW M35.00-13SOOO
PONIES: 14SjOO 30000 STSjOO
LARGE PONIES 40000-49000
COLTS 26Sj0O4SSj0O
Buffalo Valley Produce
MWllahw* R 3
May 27, 1993
R*P«4 NpfM OP Aadtoa
ASPARAGUS: 1.10 LB.
BEDDING PLANTS: S.OO-9.00 HAT.
GERANIUMS: 4-INCH 1.10-1.43;
7-INCH 3.30-4.00.
HANGING BASKETS: l-INCH
3.00-3.00; 10-INCH 6.00-130.
POTATOES: RED 2.00 SOLE.; WHITE
1.30 30 LB.
RHUBARB; .70 LB.
STRAWBERRIES: 2.90 QT.
TOMATOES: #1 LARGE 26.00 23
LBS.
WATERMELONS: SJO BACH.
NEXT WEEK’S AUCTION TUBS.
AND THURS. 10 AM.
PUBLIC AUCTION
THURSDAY, JUNE 3
5:30 P.M.
Littto Haps Action Auction, In the Rt 22,
liarkatplaoo (Olllos East), App. • ml. East of
Harrisburg.
Selling a nice selection of Antiques. Col
lectibles and Furniture, including two
Armand Marseilles Bisque Head Dolls,
Barbies, China Heads and others, a nice
selection of Early paper Items, Prints.
Engravings and Oils, Brass Hanging
Lights, Mantle Lights! Slag Glass Shade,
Early Comics, Linens, Certified Gem
Stones, an assortment of Early Kitchen
Collectibles, Tins, Nice Glassware, Ship
Models. Tinware, Primitives and more.
FURNITURE: Fancy Oak Fireplace Mantle,
Gov. Winthrop Sec. Bookcase, Mahog. Break
front w/Desk, Nice Early 98 Drawer Revolv
ing Store Cabinet, Mahog. Highchest w/Bev.
Mirror, 4 Pc. Birds Eye Br Suit, nice Hall Seat
w/Rack, Larkin Oak Sec. Desk, Empire
Chests, 10 Pc. Walnut Dr Suit, Fancy Carved
Catnelback Sofa, S Pc. Victorian Parlour Suit,
Oak Victrola, Oak and Mahog. Dressers,
Chairs, Oak Sideboard, Early Brass Bed, 4 Pc.
Walnut Br Suit, other Beds, Victorian Walnut
Dr Table, Rockers, Cherry Case Steeple
Clock, Decoys, 8 Large Ned Smith Prints
(Gamebirds), Etc.
TERMS AND CONDITIONS: Cash or
Approved Check. Preview Sale Day.
Auctioneers:
John and Tom Golden (717) 540-0339
AU-2851/2584 (717)652-3525
Harrisburg, PA.
Carnival
June 5
Bellamy
Brothers
“Let Your Love Flow”
“Kids of the Baby Boom”
The McKabes
With