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We are also within easy reach of the Canadian market - if it ever becomes available
We are the furthermost distance away from the lowest-cost milk producing regions
We have a lot of highly competitive, efficient farms.
We have a good infrastructure to support a viable dairy industry
We have a good mix of large and small farms, which complement each other
Our producers are more willing to share ideas, practices and data for the benefit of all
However, we do have some challenges ahead of us, and to maintain a competitive edge in the
industry, we may have to change some of the ways we conduct our farm business. We will
need to keep a clear focus on the things that really count Dr. Gallon discussed the following
parameters and characteristics of successful dairy farm businesses:
Main Factors Affecting Farm Profitability.
Productivity - - per cow, per acre and per worker
Herd size - - spread overhead cost and increase efficiency
Cost control - - both overhead and operating costs
Debt service - - total debt, debt servicing cost and investment strategies
Milk price - - quality premiums, shop around and negotiate for prices
Business Parameters (these figures are debatable and vary with size and kind of farm)
Cows per worker - - about 30 to 50 or more
Milk shipped per cow - - about 19,000 lb.: add another 1,500 to 2,000 lb. for 3X milking
Milk sold per worker - - about 600,000 to 1,000,000 lb. or more
Cost per cwt. milk - - $lO.OO to 11 00 or less
Profit margin per cwt. milk and per cow - - over $6OO per cow
Capital investment per cow - - $4,000 to 6,000 Keep to a minimum
Debt per cow - - less than $2,000; $3,000 temporarily during expansion
Affects return on assets (see below)
Debt service cost per cow - - less than about $3OO-500
Rate of return on assets - - about 5 to 10% over prime interest rate
* * *
High Moisture fl Dry
ON FARM STORAGE FOR
• FARM BINS
• GALVANIZED FANS AND HEATERS
•TOP DRY SYSTEMS
• GRAIN DRYERS
• HOPPER BOTTOM TANKS
• COMMERCIAL FLAT BOTTOM
• FLEX-FLO FEED SYSTEMS
• SAFETY ACCESS EQUIPMENT
We Supply Expert Installation and Service
Check Our Prlem a Before You Buy
Ms KEYS T ONE FA A M , SHOW
.• li i January 6& 7
c^ e York Fairgrounds, York, PA
Positioning Your Dairy Business For Success
(Continued from Page A 33)
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ROGERS m .„o.
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Galvanized • Carbon • Stainless
.„ n Ava'' ab ' e ,n
F" 9 " MlSff® 5
✓ In feedlots
✓ In drying systems
Standard Auger Specifications
✓ At feedmills or
✓ Around poultry &
✓ At your gram bins
or bulk tanks
Augers for feed
mixers and (arm
Call Us For Custom Specifications
Management Characteristics of Profitable Dairy Farms;
They have excellent control of fixed and variable costs
They form bargaining groups and negotiate favorable prices, bulk discounts etc
They work with low debt or no debt at all.
They keep capital investments to a minimum
Cows generate income.
Buildings, machinery and equipment do not generate income
They keep cows healthy and productive, and improve labor efficiency
But, they are an expense item! Keep them to a minimum l
They have high levels of production.
Lower productivity can be profitable IF - -
Costs are reduced appreciably
Market prices are increased appreciably.
Focus on long-term profit margins, not just short-term gains
They have a diversity of farm enterprises (extra crops for sale or for emergency feed)
Some have non-farm income
f\'i * * ' ; A V
They start early to plan for their retirement and for the transfer of the business
Deco bar 31, 1 997
Report supplied by Audios
SLAUGHTER COWS: UTILITY
34.50-39.00; HIGH DRESSING
39.75-41.00; CANNERS 29.00-34.00;
SHELLY 29.00 DOWN.
BULLS; YG#l 1300-1500 LBS.
FED STEERS: CHOICE 12001450
LBS. 65.00-67.75; LOW CHOICE
63.0064.75; SELECT 54.0059.00.
FED HEIFERS: FEW OFFERED.
VEAL CALVES: CULLS 85-110 LBS.
Clinton On-Site Farm Auction
Mon., Jan. 5,1998 @ 10:00 A.M.
(inspect from 8:30 A.M.; Blizzard Date:
Tues., Jan. 6, @ 10:00 A.M.) for
Mr. Homer Schulz located at
6993 PHILLIPS MILLS RD., NEW HOPE, SOLEBURY TWP., PA.
"SHORT AUCTION, BE PROMPT*
Formal! Super C & John Deere Model A TRACTORS; New
Holland, New Idea & Woods EQUIPMENT: Other Farm
Equip , lawn tractors & riding mowers, Vermont Lawn Cart,
Antique Thrashing Mach. sqd. W, Wetherill, Builder-
Doylestown, PA.; TOOLS by Homehte, Sears, McCulloch &
Stihl, Rockwell, Lincoln mcl trimmer, chain saws, welder, hand
tools, molding plans, AUTO: 1965 Alfa Romeo Giulia Sprint
GT 2dr coupe-off the road-sold in AS IS COND, MORE
Terms: Cash or Checks Accepted w/Prior Approval.
Directions: From New Hope, PA @ Rt 202 New Hope-
Lambertville Toll Bridge North on Rt 12 (River Rd ) 1/2 mi to
Phillips Mill Rd , turn left, property 7/lOths mi on right, From
Rt 202 @ Lahaska, PA North on Rt 263 (York Rd ), 3mi to
Solebury, PA , turn right on Sugan Rd & make an immediate left
on Phillips Mill Rd , property I & 8/lOths mi on left
H Robert H. Clinton & Company, Inc.
Auctioneers & Appraisers
P.0.80x29 » Otlsvilk, PA 18942
610-847-5432 ♦ AY-000093-L
Heavy Duty Bale Movers
Finished with Baked on TGIC Polyester Powder Coating
With Kverneland Forged Steel Spears • Electrically Heat Treated
These spears are stronger S allow easier bale penetration
• Attaches to lower - ~~
3 pt arms only '
• Safety chains prevent flip around
• 1000 lb capacity
Feed Big Bound & Regular Bales
Lancaster Farming, Saturday, January X, IMS-AS6
27.00- 60-80 LBS. 20.00-30.00.
FARM CALVES: HOLSTEIN BULLS
#1 90-120 LBS. 90.00-113.00; «2 83-93
LBS. 38.00-73.00; HOLSTEIN HEIFERS:
85.00- LB. 60.00-95.00; FEW
BEEF X BULLS AT 90.00.
BUTCHER HOGS: FEW OFFERED.
SOWS: 400-300 LBS. 30.00-31.00.
THIN 23.00-28.0 a
STOCK CATTLE: STEERS 2500-450
LBS. FEW TO 65.00-76,0 a
HEIFERS: 350-500 LBS. 55.00-65.00;
500-700 LBS. UP TO 58.00.
BULLS: 400-700 LBS. 54,00-68.50 900
hitch or loader
or 2 cylinders
vnge horn 1 to 2 spears
\k PLF 4000
W *, • Front e"d loader fork
B " Includes chain & binders
1500 lb capacity
TRAPP’S BARN E!
BOSS OLD PHILADELPHIA PIKE. GAP. PA 17827
raOME: 717-442-8134 • FAX 717-442-3112
MON JAN 5 - 4PM Leespoit
Farmer’s Market Banquet Hall,
just off Rt. 61 at the North end of
Leesport, Berks Co, PA Indian
artifacts & bottles, beer items,
glass & china, Hot Wheels, milk &
eariy bottles, old Ice cream parlor
set Stools By Jeff Miller Kenneth
P Lelbv, Auct
TUES JAN 6- 10AM 1825 E
Boston Ave, Phila, PA Building
materials, carpet flooring, rest
equip, $75,000 fum inventory S
more Wm F Comly. Aucts
Through Agricultural Education
t For 3 point hitch
• Easy to change
from 1 spear to 2
• 15001 b capacity
• Easy to change from 1 spear to 2
• 12501 b capacity
• 1 7/8 CRS-C1144 steel spear
• Great lor front loaders
• Mounts in minutes
• 15001 b capacity