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HomeMy WebLinkAboutThe Goderich Signal-Star, 1985-03-20, Page 59epPor,, ••• 6, • 11 CP r COlrarlii).C101.C: Deo tor For HARDWARE & SOFTWARE • • „ . 4.• 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 ••• 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. • 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 0. murudpal drains and to the taxpayers who pay to dredge Goderich harbour. • p f 1; 6" all gb Mot steel -30 go.. g steel' .)::40,f., wide sliding door ilt••••„ iv wide 'sliding dooms. --etnrmitothOt dor kracIE-and hardvvare • 44/1 1/0048127 &WS PiSCOUS 6741 impletelyerficted:Price, Tow ire""1 ,.• • • e • , •• ;. i'...4mr,goxicotruKag*AiriaLitma: atia1EHIAL9m -fawft),„ !Pm ECUO A , ,, • id Built Ford To 19851FORDT150 WORKMATE -PACKAGE INCLUDES: * AMMETER & OH. PRESSURE GAUGES * 6100G.V.W. * P235x15 ALL -SEASON RADIAL TIRES * H.D. BATTERY • * 4 -SPEED MANUAL TRANSMISSION * H.D. SHOCKS * H.D. FRONT SPRINGS SAVE. 67200 ON THIS WunKMATE PACKAGE IDOW SCHNURR MOTORS WALKERTON ,a181.1506, -