HomeMy WebLinkAboutThe Goderich Signal-Star, 1985-03-20, Page 59epPor,, •••
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In1975 ins P01301a. get 10 Cl*lit
424 oss# 4, Om* 8
Sheep breeders 'have traclliintak bawd
their attention on pnxiuttiM more .than
economics because they spent so much nine
trying to keep the "crilLter"
!Don Pullen of the Clinton OlViAr
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Sheep producers figure.'4 they
production up the finances ill it* .cali of
theneIves.But the decline in sheep pmduction due in
predators and internal parasites, the two
"profit robbers" as Fnllen. phrases it, has
caused agriculture representatives to become
more involved in the financial management of
sheep production.
When farmers think of financial manage-
ment they think of bills and the need for
money to pay them, says Pullen. This require-
ment reinforces theneed for record keeping.
The heart of sound financial management
is information which allows you to analyse
current and past performance to pan for the
future, states Pullen. Records provide the,
basis for effective decision making.
Cash records are okay for Revenue Canada
purposes but this type of record does not take
into account receipts, balance payable and
. inventory.
Parra records are one the last diores a.
farmer gets done, says Pullen. Usually
fanners tackle their bookkeeping late at night
when they're finished with other jobs around
the farm and they are tired. But farm records
provide financial and physical information
whidi, if kept pniperly. are irreplaceable.
Hosical information includes barn record
sheets and ewe record cards while financial
information includes the balance sheet, a list
of what you own and owe to othersat any
given time. A balance sheet can be used to the most
commonly requested document by lenders; to
show faun business progress and as a snap-
shot of farm solvency.
A balance sheet has its litnitations,
however. When land values turned around
banks were no longer looking -at the -balance
sheet but at the cash flow to see if fanners
were capable of servicing the debt.
Input costs are up dramatically with no
increase in commodity prices and credit is no
longer based on fixed assets but rathtr the
cash flow projection.
, —
�nt at theifigre:•404,
' of the Oztgentilgeresr ;140e
kiss and 'eutientlY lends at per
vent for Oye.;:ymi,;iopiolif.9-4 M*14- 3.1,ea*l
rann,IMOott*MPARs 141*W seVfla per
40elitin lirMileir*tirtett*over13 per
. cent. It's "Alt get tam uedit and
the than of futerniedlo* credit are iffy.
Some danger signs to look- for, want;
Pullen, include using more credit for feed
bills and supplies. Suppliers and feed
companies charge two per cent interest per
month which is 30 per cent a year and that
las. Another danger sign is borrowing more
each yar to plant crops or buy replacement
• livestock.
Good finandal management'has its featur-
es. One is proof - physical records to support
your request for loans and cash flow claims.
Budgets will show how much debt you can
service arid records allow regular monitoring
of your fmancial situation and permit a
marketing strategy.
Such a strategy includes calculating returns
on resource units and cost amtrol resulting in
unique ideas for controlling costs or decisions
to repair, rather than buy new.
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Berri reroutes water
to underground tile
from page 10
beam ponds the water rerouting it to an
'underground tile, preventing the water from
running ocross the land creating a gully right
across the farm The berm also prevents top
soil from being swept into the drainage
system where it has to be removed. The basin
is big enough to store water from 60-70 aaes.
Two smaller structures are requited down
stream about 1,000 feet apart.
Control of spring runoff in this manner
would. effectively stop. the erosion•of gullies
along the Huron shore line if fanners inland
were employing soil erosion practices. Such
erosion control woukl also effectively reduce
the cost to the township for cleaning
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murudpal drains and to the taxpayers who
pay to dredge Goderich harbour.
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