The Rural Voice, 1982-08, Page 19market period is also small. A surge in
prices usually is necessary to stimulate
such thoughts.
Despite the aforementioned comments,
most people will agree that the ideal time
to expand is when the market is perceived
to be at its lowest. Hindsight has
suggested that by the time construction
would have been completed and pro-
duction fully on -stream. the market would
have recovered, and the operation would
be taking advantage of the improved
prices. Unfortunately, predicting the
exact bottom of the market and then
borrowing money on the strength of
crystal ball gazing does not make sound
economic sense. Thus, it is usually quite
difficult to convince a lender to provide
financing under such conditions.
A lender will be receptive to discussing
new financing proposals that are well
researched and reflect objective as-
sessment of the market conditions, the
impact of the change on the existing
operation and alternative action which
might be taken in the event that
projections fall short.
Farm financial management is no less
complex or important than financial
management in any other business.
Historical financial information, cash flow
projections and realistically valued assets
pledged as security in support of loans are
all important considerations in a lender's
decision making process. He also wants to
be sure about the character of the person
with whom he will be dealing. Several
advisory services are available to Cana-
dian farmers upgrading the level of their
financial record keeping and manage-
ment. Proposals to expand the farming
operation which require financing must be
thoroughly researched and objectively
assessed as to their overall impact on the
existing operation.
William H. Bearss, P. Ag., is Regional
Agricultural Services Manager for The
Royal Bank of Canada. This is the second
of two parts of his lecture he gave at the
Annual Ontario Pork Congress.
OG ALFA -LAVAL and
LENCO Dairy Supply Ltd.
R.R. 1, Atwood 356-2282
ANNOUNCES:
Mr. Jim Boak
R.R. 5, Lucknow
357-1220
Sales and Service
Jim is well qualified to serve you with the latest in dairy equipment as he was
himself a dairy farmer and an ALFA -LAVAL user. Phone him and he will be glad
to discuss your requirements with you.
Pipe lines - Parlor - Bulk Milk Tanks - Plate Cooler -
Energy Savers - Milk Meters - Water Conditioners - Water Bowls
Ration Master Computerized Feeding Systems.
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Affiliate of Fritz Concrete Limited
Suppliers of Precast Agricultural Slatted Floor-
R.R a 1. CHEPSTOW. ONT NOG 1K0 (5191 366-2661
TOLL FREE (AREA 519) 1-800-265-3015
CROPHANDLING SYSTEMS LIMITED YOUR CANADIAN MADE
Head Office 12iU Atruwooa Dr Mississauq.i Unt ALTERNATIVE
THE RURAL VOICE/AUGUST 1982 PG 19