Lancaster Extension Announces Educational Meetings
pennState
College o( Agricultural Sciences Cooperative Extension
1383 Arcadia Road, Room I, Lancaster, PA 17601-3184
Dear Friends
I hope that you and your family had a joyous holiday season, and that the spirit ol this
holiday season will accompany you and your family in the new year
As we lace a new year, it is good to reflect on the past ycai and take slock of all the things
that were good and all the things that you and your family have accomplished This
serves as a good base from which to launch into the uncertainties of the year ahead This
is also a good time to think about what you and your family want to accomplish in life and
how your farming business fits into your family plans
As you plan for the future, it is helpful to know how serious you, yout family, and youi
business partners are about the business of farming Their desires and commitment will
affect the decisions you make about the farm and how it will be managed in the future
Are you serious about farming over the long haul, and about being a serious competitor in
the industry If so, you may need to think about expansion and about how you can
sharpen your management skills so you can skillfully and vigorously pursue the future
However, size is not everything A medium-sized, well-managed, productive dairy farm
with good cost control and good profit margins per cow and per cwt of milk can still
compete Read the enclosed paper on “Positioning Your Dairy Business lor Success”
II you have limited land, or are located in an area where expansion is not feasible, you may
want to consider relocating to another area rather than iincslmg a lot of capital and othci
icsourccs in a business that has only a limited possibility for success in the future
Oi if you are unsure about your and your family's commitment to farming, you may simply
want to "hang in there" tor a (cw years and make the best use o( what you nlicady have
until situations change and until you have a clearer sense of direction Another option is
lo diversify into other agricultural enterprises or to pursue various oft-farm ventures
It you arc thinking about phasing out of farming, for whatever reason, start planning your
exit early and in an orderly fashion so you have a better chance of hanging on lo more ot
the assets you have been working a lifetime to accumulate For more information on an
orderly exit, enroll in the upcoming 2-day seminar on "Exiting From the Dairy Business in
Oidcrly Fashion", which will be held on March 11 and 18 Details of this seminar will be
available later. In the mean time, you may want to reserve these dates on your calendar
If you need lo buy a lot of feed, take advantage of price breaks, bulk discounts (team up
with your neighbors), early payment discounts and lower-pnced alternative feeds even if
,t means taking out a line of credit so you can take advantage of 'good deals The
savings you realize should be much greater than the interest you pay - - that is, IF you
discipline yourself to use the money only on things you need to generate income. AND IF
you pay down the loan quickly with the extra income earned as a result of the purchase
II vou need cash be careful about selling off income-producing assets at a loss, such as
bred heifers and cows Thafs a quick way to go out of business' Continue to invest
money in building up your income-producing base, even if it means deferring payment on
overdue bills Money spent paying down bills is gone forever; it will never earn any more
income for you' Using that same money to build up and preserve your income base
uuicklv will uenerale more money which will be available to pay down bills month after
month after month. IF that can be accompl.shcd both you and your creditors are w.nncis
As you attempt to cut costs, be careful that you do not cut short-term and long-term
profits in the process Some examples of this are
- Failure to maintain vaccination programs Diseases could sneak in and burl you later
Neglecting heifers and dry cows You'll pay for it dearly later in the form of ketosis.
DA’s low milk production, poor conception rates, increased culling, etc
- Giving cows less feed or using poor quality feeds It will trigger Problems dls ™' is = d
above The most profitable milk a cow gives - - the milk that pays the bills - - s the
milk she produces ahS2V£ the break-even level of about 50 to 60 lb per day (it vanes a
lot from farm to farm) When you under-feed a cow, the lost milk comes right off the
lop that’s the most profitable milk, and the milk you lose may be hei only profit
- Using a herd bull to save A 1 costs If the bull is infertile or has poor genetics, and if he
spreads infections from cow to cow you will pay for it later - - not to mention safety
Amlvzc vour feed inventories and feed needs Sell unprofitable cattle and lot someone
heifers tohelp reduce feed purchases. Save the best feed for the best cows
If necessary buy some good feed for the good cows, but feed it sparingly Keep
i hallcnging your nutritionist and feed company reps to help you fine-tune your rations
and your tcedmg practices, and to reduce your feed costs without hurling herd health,
production and profits
Sincerely,
a.
Glenn A Shirk
extension Agent - Dairy
Scholarship Students Honored
UNIVERSITY PARK (Centre
Co.) - The cost of college went
down this year for nearly 500
students in the Penn State’s
College of Agricultural Sciences.
They were the recipients of
almost $900,000 in awards
through the College’s scholar
ship and awards program, sup
ported by annual and endowed
gifts from friends and alumni.
Scholarship recipients and
donors are honored each year at
the scholarship and awards ban-
Dairy Notes
Lancaster County
December 1997
quet. “The banquet recognizes
both those students who excel
academically in the classroom
and those who also lead and
take part in our college’s many
extracurricular activities,” said
Dr. Robert Steele, dean of the
college.
Scholarship recipients are
chosen on the basis of their aca
demic standing, financial need
and recommendations from pro
fessors. The college administers
more than 189 separate scholar-
717-394 68SI
TAX 717 394 3962
ship funds for new and continu
ing students. Nineteen new
scholarships and awards were
made for the first time during
the 1997-1998 academic year.
Information on scholarships
for 1998 will be mailed in
January to all applicants with
offers of admission and to stu
pennState
BASIC DAIRY FARM MANAGEMENT WORKSHOP
You are invited to attend one of these 2-day workshops.
Help families manage their farm as a business so it can meet the needs of the family
lose -
Profit margins needed per farm, per cow, and per cwt. of milk.
Developing management strategies to help the farm attain the desired profits.
Monitonng the dairy business to see If progress is being made.
Start-up considerations.
Making wise capital investments.
Controlling debt
Explonng advantages and disadvantages of various styles of farming
Analyzing and controlling costs
Focusing on herd management priorities, such as' feeding, comfort, health, reproduction,
replacements, culling, etc.
Note: The financial meeting on Feb. 12 ties In nicely with this workshop See other side
Topics -
Husbands and wives, fathers and children, brothers and sisters are encouraged to attend as
partners. Participants will receive a comprehensive manual.
Who-
There are 2 workshops remaining (more will be scheduled if needed). They aie:
January 15 and 22 Stephen S. Stoltzfus Farm, 901 Peters Road, New Holland
March 12 and 19 Lancaster Farm and Home Center Basement, Lancaster
When -
Registration and refreshments 9:30 - 10:00 a.m. Program begins at 10:00 a.m.
Time-
Cost Is $lO.OO per family (for 1 manual). Lunch Is on your own.
Cost -
Registration required. Attendance Is limited.
Register-
Penn State encourages persons with disabilities to participate In its programs and activities. If you
anticipate needing any type of accommodationpr havejuestions about the physical access provided,
please contact Glenn Shirk at 717-394-685 f in advance of yduf participation or visit.
Ist Person
Address
Which workshop do you want to attend? ( Jan. 15 and 22) ( Mar. 12 and 19)
Mail registration to Glenn A. Shirk, 1383 Arcadia Road, Room 1, Lancaster, PA 17601-3184 with check for
$lO.OO, payable to Agricultural Extension. Or, call 717-394-6851
This publication is available m alternative media on request
Penn Stale is «n «ffirm«nve action, equal opportunity university
pennState
Most dairy producers purchase their farm inputs at retail prices, but sell the products they produce at
wholesale prices. Most other business buy at wholesale and sell at retail. Because of mis, Dennis
Binder, Extension Farm Management Agent for Lancaster and Chester counties, says that you must
manage production costs and be very efficient if you expect your dairy business to be profitable.
At this time of the year we will soon be summarizing our income and expenses tor the year for tax filing
purposes. Don't let “Uncle Sam" be the only benefactor of all your hard work. Go one stop further and
use those same figures as the basis for calculating your own costs of production.
This workshop ties in nicely with the “Basic Dairy Farm Management Workshops’ (see other side)
Purpose - Help families determine their costs of production so they can manage them effectively
Calculating what it costs you to produce your farm products
Enterprise analysis. Is it cheaper to buy crops and replacements than to raise them?
Measures of efficiency and how to calculate them
Record for keeping and summarizing key financial and production data
Topics -
Who - Husbands and wives and business partners are encouraged to attend as a team
Participants will receive a comprehensive manual.
When- Thursday, February 12. Registration at 9:30 a.m. Program begins at 10.00 a.m.
Cost - Free. Lunch Is on your own.
Register- Registration required. Attendance is limited.
Penn State encourages persons with disabilities to participate in its programs and activities. If you
anticipate needing any type of accommodation or have questions about the physical access provided,
please contact Glenn Shirk at 717-394-6851 in advance of your participation or visit.
Names
Address
Mail registration to Glenn A. Shirk, 1383 Arcadia Road, Room 1, Lancaster, PA 17601-3184, or
call 717-394-6851.
This publication is available in alternative media on request
Penn State is an affinnauve acuon, equal opportunity university
dents enrolled at other Penn
State Locations. Students at
University Park can pick up
their copy in 101 Agricultural
Administration Building. For
the first time this year, all stu
dents are encouraged to apply
via the Internet through the col-
College of
Agricultural Sciences
- - cut-off
2nd Person
Phone ( )
College of
Agricultural Sciences
WHERE DID ALL THE MONEY GO?
A Farm Financial Management Workshop
You are invited to attend.
cut-off
Cooperative Extension
Lancaster County
Cooperative Extension
Lancaster County
Phono ( )
lege Web Site at
http://www. cas.psu.edu.
Current and potential students
can click on the College
Overview button to see the
Scholarship and Awards
Application.