AlHfncMter Farming, Saturday, February 1, 1997
Lancaster Chamber
EVERETT NEWSWANGER
Managing Editor
LANCASTER (Lancaster Co.)
—‘Tanning will always be a way
of life for those who treat it like a
business.”
This quote formed the basis for
the Lancaster Chamber of Com
merce and Industry’s annual farm
business financial management
school Wednesday.
Michael Boehlje from Purdue
University was the morning
instructor who placed emphasis on
the financial future of agriculture.
He said agriculturalists must look
at ‘The New Agriculture” in terms
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of globalization, industrialization,
differentiated products, food supp
ly chains, and information/
precision farming methods.
Exports in the past consisted of
mostly commodities, but the shift
in exports is now to processed
foods and other value added pro
ducts. Unlike the jump in experts
in the '7o’s with corresponding
jump in commodity prices that was
fueled by governments buying
food on credit for their hungry peo
ple, today, increased world
demand is fueled by increasing
personal incomes around the
world. This gives the people in
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developing countries the opportun
ity to buy more food and gives a
“real” basis for U.S. farm export
markets.
However, technology is also
being exported and may work
against U.S. exports if foreign
countries can produce their own
food in the future.
And a new factor today is that
many inputs for agriculture ate
coming to us as imports. Machin
ery, products, and even lines of cre
dit are being imported. The world’s
largest ag lender has headquarters
overseas.
To be successful, today’s far-
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mers must get the manufacturing
mentality. For example, think in
terms of producing pork rather than
raising hogs. Fanning is changing
from an art to a science. You need
to focus on the end product and the
system to get there.
Value added opportunities
should be researched. End-User
responsiveness, better flow sche
duling. improved quality control,
and food safety-traceback are areas
that will become mote important as
farmers continue their search for
markets both at home and for
export
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Seminar
And remember, smart buying of
inputs is as important as smart sell
ing of commodities because you .
can impact bottom lines more with
smart buying.
The 35 farm men and women in
the school worked on key perfor
mance measures for their own
farms and studied analysis sys
tems. In the afternoon, farm fondly
estate and business planning and
ownership succession were topics
covered by Don Rogers, First Pion
eer Farm Credit James Shirk, ag
manager for the Chamber, gave an
overview of agriculture and the
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