M-Uncaatar Farming, Saturday, September 18,1983
f
F
A
R
MANAGEMEN
INVESTMENT
CONSIDERATIONS
Roland Freund
Penn State
Regional Farm
Management Agent
In this column last May we dis
cussed methods of expanding the
dairy herd.
the options of rapid expansion
and closed-herd expansion were
analysed, and the conclusion was
that in most cases the slower pro
cess with investments staggered
over time will be far less risky.
Once a modernization or an expan
sion program gets to the planning
phase, a whole host of possibilities
jump (o mind.
In recent months I have been
looking at construction plans
which, if implemented, will result
in new debt of more than $6,000
per cow just for cow housing
and parlors. Such situations sug
gest that our dairy managers are in
danger of allowing modem tech
nology to lead them down the risky
path of overcapitalization.
It was too much investment for
too little profit that led to the
“Farm Crisis” of the 1980 s, and we
don’t want a repeat of that in Pen
nsylvania in this decade.
The profitable farms in this
decade will be those which can
achieve good production through
cow comfort and health, with labor
efficiency, capital efficiency, and
economical waste handling. There
are many ways of doing these
things, and every dairy farm has to
compromise on some of these
parameters in order to maintain
profits.
Waste handling
New legislation has brought this
factor to the forefront of the plan
ning process. It is important to
develop a plan of how this resource
will be managed, handled, and
used in the total farming operation.
Sticking to such a plan can reduce
investment in the system, improve
crop uptake of nutrients, reduce
labor bottle-necks in the spreading
process, and minimize storage
overflow crises.
Cow comfort
and health
The basic requirements for cows
are a clean environment with shade
in summer and wind protection in
the winter.
Deere Introduces
(Contlnued from Page D 7)
the front of the machine. A bolt-on
shield protects the knife mounting
hardware from wear, making re
moval easy.
Impeller conditioning in the ro
tary machines features a rotating
shaft with a series of free-swing
ing tines that move the crop
through the machine. Condition
ing occurs as stems mb together
and against the adjustable condi
tioning hood. As the stems’ waxy
layer is removed, moisture is al
lowed to escape.
A single lever permits lowering
the hood for more thorough condi
New concepts are open and
naturally ventilated buildings,
rather than the old insulated and
mechanically ventilated ones.
Careful design can reduce con
struction costs and eliminate the
need to add costly ventilation sys
tems to correct problems which are
almost inevitable in enclosed
strucures.
Labor efficiency
and convenience
The design of facilites and sys
tems will have a big impact on
labor. Each component of the sys
tem and each task needs to be exa
mined to avoid extravagant spend
ing on one component or the other.
More capital does not always
mean less labor. Bottom unloading
silos may have some advantages,'
but labor inefficiency and operat
ing costs have made them obsolete
in some setups.
Milk in less
than two hours?
The parlor seems to get the most
attention when it comes to labor.
In the old days of single family
operations, it might have been
necessary to “quit work to come in
and milk.” So people had good rea
son to reduce time devoted to that
“chore.”
In any dairy with more than two
operators, milking needs to be a
specific assignment which should
not interfere with field operations.
Parlor sizing should be based not
on the entire herd, but on each
group that is to be milked.
In high-producing herds with
three times a day milking, some
suggest that it is prudent to get
each cow back to feed in less than
one hour. By careful design of par
lor and grouping of cows in the
housing, such a goal can be accom
plished even with quite modest
parlors.
A parlor which operates four or
six hours per milking will be more
capital efficient than a big-bucks
model which gets the job done in
two.
Capital or labor
In the planning process, it is
important jo keep capital and labor
expenses in perspective. If capital
for equipment and facilities can be
obtained at 8 percent with repay
ment over 10 years, then a labor
saving investment of $86,000 will
break even only if it reduces total
labor costs by $l,OOO, or more per
month.
tioning or raising it for lighter con
ditioning. Also, the two drive
gears for the impeller rotor can be
easily interchanged to adjust rotor
speed for more effective condi
tioning in certain crops.
Urethane-roll conditioning, like
in the 820 sicklebar machine, is
also available in the rotary mod
els.
The John Deere factory in Ot
tumwa. la., is scheduled to begin
shipments of the new 800 and 900
Series MoCos in February.
More information about the ma
chines is available from John
Deere farm equipment dealers.
This means that, all other con
siderations being equal, we are
better off if we hire labor for
$l,OOO per month than to pay out
$90,000 to eliminate it. But if we
can save $l,OOO per month with an
investent of $BO,OOO or less, then
that investment can be justified on
the grounds of labor savings.
Communal efforts
Given the astronomical invest
ments in new technology, the
small single-family operation runs
great risks when it attempts to
J-Star Honors Rovendale
Ag & Barn Equipment
*
CARLISLE (Cumberland Co.) —Brenda and Donny Rovenolt of Rovendale Ag and
Bam Equipment, Watsontown, Pa., accept their Bronze MVP Award from John Neill,
right, president of J-Star Industries.
The elite MVP Award (major volume performer) recognizes the company’s top
dealers who have achieved gold, silver, or bronze levels of sales and performance
objectives during 1992.
The presentation took place at J-Star’s Regional Dealer Meeting held in Carlisle.
The meeting gave North American dealers an opportunity to hear about new pro
ducts, Innovations, and programs which J-Star Industries will be featuring for the
balance of 1993. ■■ ■ ■ ■ ■. —^
■ BUY. SELL. TRADE OR RENT THROUGH THE
WI d L=l -M-
PHONE: 717-626-1164 or 717-394-3047
FAX 717-733-6058
Mon., Tues., Wed.. Fri. 8 AM to 5 PM; Thurs. 7 AM to 5 PM
■ FARM
EQUIPMENT
100CIH crawler loader, ex
cellent, $7lOO.
315-536-2141 Yates Co.
10' Miller Offset Disc Level
ing Cylinder, Disc Blades
80%. Real Good Condition.
$3300. 301-349-5432.
13 ft Krause no-till drill.
model 5200, new condi- 18 [UFFLINE HYD. 375 Bushel McCurdy Grav-
tion. 717-768-1739. FOILING TANDEM AXLE Bin Wagon w/Fertilizer
1163 MF Com Head, good n ;« n «t aa i r aa rf hin p'SC. ready to good Auger; VicohS Wheel Hay
condition; running gew for <#d b !?f T^n v r y r *3900- Rake. Stump Acres. York
com head. 21& f 589-4706. 717-665-4743. 717/866-6825. County. (717)792-3216.
modernize.
But failure .to modernize can
also lead to poor profitability and
eventual termination of the
business.
To maintain total independence
and rugged individualism may be
ideals which will have to be sup
presssed for the sake of survival in
the future.
Extended families and groups of
farmers might have to return to
business arrangements which fos
ter pooling of capital and labor
resources for greater efficiency.
i
V o
A <l^*l
W . I BUSINESS
U-IS| - ' DRYING UP?
Sj-y ~ V ADVERTISE
ll _«Tr- ' IN THE
M WEWSPAPERI •
V,
1948 JD B cyclone w/
125 JO Chuck Wagon w/ 16 n 0 R Ush oi Com r.rih rollamatic engine 4 carb.
roof, etc., very good shape, °P srie l. Cor i > Cflb rebuilt oood condition. JD
lll s^, del " er ,ree - Sf roHbar wtanow off 2640,
2,5/256 - am SJ: 7 mSTK4 ,B,, “ em «» ,rBC,orB
mem and labOTtOTtteltoCtfvflles,
but even animal housing and milk
ing parlors.
Budgets are critical
For greater chance of success,
every plan requires an open mind
and the evaluation of many alter
natives. Then careful cash-flow
budgeting can avoid making mis
takes in concrete.
Contact your equal opportunity
extension office for technical
information and assistance with
financial projections.
■ f SV
-
%
«• •