John Rutherford
Lebanon County
Extension Office
A major car manufacturer re
cently used a television commer
cial with the profound statement
that happiness is derived from
what you have, not what else you
can buy. In other words, a person
needs to manage what they own to
give them the greatest personal
benefit.. As of late, farmers do
not seem to be getting much
benefit out of dairying. If there is
not a low milk price, low calf
price, late bill, machinery break
down, sick cow, disgruntled
neighbor, or unmotivated em
ployee to deal with, it’s been a
pretty rare day. In many cases,
reviewing your farm procedures
will help you by-pass these (and
other) problems. Here are some
possibilities for improving the
benefits you get from producing
milk.
The first management step to
ward improving the status of your
farm is to establish a system of
controlling. You can control of
the things that seem to control
you! Various activities take place
on a farm each day. Keeping track
of each activity and making ad
justments - BEFORE major prob
lems arise, is to control the activ
ity By looking at milk produc
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Adamstown PA*7l7/484-4391
Chambe reburg Farm Service
Chambersburg. PA* 717/264-3533
Charlee S. Snyder inc.
Tamaqua. PA* 717/386-5945
C.H. Rlnehimer
Berwick, PA • 717/752-7131
Deer Creek Equipment
Whiteford, MO • 410/452-5252
Deerfield Ag A Turf
Wataontown PA*7l7/538-3557
T "x:
tion daily, crop growth weekly, or
accounts payable balances
monthly, you can tell if they are
adequate or starting to go astray.
Milk price is one aspect of
farming that receives a lot of
complaints. Here are two ways to
increase the price received for
milk. First, increase the quality
of the milk shipped. Depending
on who buys your milk, you can
receive as much as 40- cents more
per cwt. Hedging against low
milk prices is a new opportunity
for dairy farmers. By understand
ing the use of milk futures, you
could have received a dollar more
for milk shipped last August.
Dairy producers have a number
of opportunities to cut costs on
their farms. Many farms could
benefit by evaluating the individ
ual enterprises and making appro
priate changes. Enterprises are the
separable pieces of the farm opera
tion. If you raise corn for on-farm
grain, silage, and to be sold, you
have three com enterprises- feed
grain, silage, and market grain.
This also applies to animals.
There can be enterprises for heif
ers, milking cows, pigs, broilers,
etc.
By analyzing your farm as
group of enterprises, you can look
the results you want and how
they may be met more cost-
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Peach Bottom PA • 717/548-3775
Eckroth Bros. Farm Equipment CB Hoobar It Son, Inc
New Ringgold, PA* 717/943-2131 McAlhsterviHe PA • 717/463-2191
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Stoneboro PA *412/376-3390
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Woodsboro MD* 301/898-3233
Henry Horning
Urtz PA*7l7/626-5033
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effectively. Is there another way to
get that same outcome for less
cost? What I mean is, can you
buy com for less than it cost to
raise?
When it’s time to replace
equipment it’s also a good time to
think whether the new equipment
is worth its cost, or could the
money be used elsewhere. Are
custom operators available that
will do as good (possibly better) a
job for roughly less cost per year?
Lancaster Farmer recently pub
lished the 1998 Machinery Cus
tom Rates list that the Pennsyl
vania Agricultural Statistics Serv
ice (PASS) released this year.
Copies of this list are available in
most Pennsylvania county exten
sion offices
The animal enterprises also
have possibilities. Keeping the
herd at its maximum size allows
you to receive more income with
which to pay for fixed costs- like
the cow bam and silos. Is the
lack of quality replacement heifers
eroding the profit your farm
should generate? Some dairy
farms contract out the raising of
their heifers.
A new development has been
the formation of buyer groups.
These groups take advantage of
the discounts available when
large-lot purchases are made.
Finally, farmers need to redou
ble their efforts to keep current on
all outstanding bills. A 1% or
1.5% charge per month on bal
ances may not seem like much,
over a full year this is 12 to 18%.
For every $l,OOO in average bal-
icks
-816, 818, 916 & 9
>r strength with upr
lauge steel
imzed lumber bed,
/ears
late is hinged to oi
ther side
Round
Models
• Easily
• Stronc
• Centet ~ng
• Model 646 G has gooseneck hitch
Hutton Farm Equipment
Mahaffey PA *Bl4/277-6647
Ickes Farm Supply
Osterburg PA *Bl4/276 3422
IvanJ Zook
Belleville PA*7l7/935-2946
Improving Management
Raises Satisfaction
Flutter Tedders- Model
• Dries hay fast for umfoi
• Gentle lift causes mini/
damage to leaves
• The ideal tedder for hr
forage
Knott A Geisbert, Inc
Frederick MD *3Ol/662-3800
Longeneckers, Inc.
Williamsburg PA • 814/793-3731
Marshall Machinery
Honesdale PA* 717/729-7117
Meyers Implement, Inc.
Greencastle PA • 717/597-2176
Morris International
Everett PA*Bl4/652-6101
ances carried, you are paying $l2O
to $lBO per year. If the interest is
compounded, you are paying even
more. Watch for incentives to
pay early. A 1/2% discount for
paying within 10 days is the
equivalent of an 18% annual dis
count. How often can you borrow
on your line of credit for less than
18%?
Ag Horizons
Conference July 28
HARRISBURG (Dauphin Co.)
Ag Horizons IX Conference is
scheduled July 28 here at the
Wildwood Conference Center.
Risk Management is the focus
of the program. As an educator,
you need to understand the princi
ples and techniques of managing
risk though trading commodities,
using hedging, options, and fu
tures.
Ag Horizons is a program de
signed especially for educators in
agriculture, whether in a class
room, club, adult farmer program,
or in extension. The Southeast
Regional Council of Coopera
tives, the Pennsylvania Council of
Cooperatives, and Penn State Uni
versity sponsor this program.
Please encourage a fellow educa
tor, perhaps someone from the fa
culty of your area high school’s
Plkeville Equipment
Oley PA* 215/987 6277
Ralph Kyle
Mercer PA* 412/748 4300
RAW Equipment
Carlisle PA* 717/243 2686
Schoffel Equipment
Somerset PA • 814/445-6500
Stottzfus Farm Service
Cochranville PA *215/593-2407
If *r*
Lancaster Farming, Saturday, May 16, 1998-D3
These are some ideas for im
proving the performance of your
farm. Improving your income
while limiting expenses and risks
should be goals of every manager.
Many of these changes do not in
volve investing any more money.
However, they can help ensure
that you enjoy dairying for many
years to come.
social sciences department, to at
tend with you.
Graduate credit at Penn State
can, as in the past, be earned in
conjunction with Ag Horizons. If
you wish to register for credit or
want more information on regis
tration at Penn State, please indi
cate this on your registration form.
The cost for one graduate credit is
$266 (in state), $447 (out-of
state), and $66.50 if you are a
Penn State employee.
For more information, contdct
Jim Barnett (215-322-0200),
Richard Poorbaugdi
(814-863-0644), Carol Duncan
(610-693-5601), John Schwartz
(717-394-6851), James George
(717-368-3066), Jeff Stoltzfus
(717-354-1522), Jerry Ogline
(717-249-1711), Chuck Suloff
(215-257-1175), or Jerry Phillips
(717-291-4543).
Umbergers of Fontana
Lebanon PA* 717/867 5161
Wattamyar’a Salas t Sarvfca, Inc
Red Lion PA • 717/244-4160
Zimmerman Farm Service
Bethel PA* 717/933-4114