you owe -- drops in value affect assets not debts which are in 

 dollars. 



5. Estimate your probable Income — gross cash farm income minus cash 

 farm expenditures leaves cash available for family living and 

 interest and principal pajmients on debts. You may not be able 



to cut family living costs when the going is rough. 



6. Have a definite repayment schedule — if the loan is for operating 

 expense then plan to pay from the proceeds of crops or livestock 

 for which the loan is used. Funds borrowed for items with a 

 longer life should be repaid before the items purchased with 

 borrowed funds become unproductive or are replaced. 



7. Be fair, frank and bussinesslike at all times with your lender . 



He can be of most service if he understands your operation and the 

 results you expect. Pay promptly or if circumstances prevent this 

 arrange in advance for further consideration. 



8. Select a lender who is most likely to be willing and able to go 

 along with you if bad economic conditions develop . 



9. DO NOT BORROW for an enterprise which is not fully familar to you . 

 A trial run on a limited scale with your own funds may be wiser 

 than plunging into an unfamilar deal. 



10, Remember insurance for added risks — Be sure your property and 



liability coverage is adequate. In many cases borrrowing increases 

 debts without an offsetting increase in assets at the time. Life 

 insurance may be needed to protect your family in case debts are 

 heavy and risks are high. 



— -L. D. Rhoades 



I I I I I I I I I I I I I I I I 



EXCERPTS FROM TAU<S ON MARKETING METHODS, MICHIGAN 

 STATE HORTICULTURAL SOCIETY REPORT FOR 1956. 



1. The Challenge of Our Changing Distribution System, by Stanley B. Davis, President 

 International Apple Association, Inc. "The apple grower must realize that his 

 trading days are about over and he must turn to scientific merchandizing if he is 

 to receive a satisfactory return for his fruit." "Every fresh fruit and vegetable 

 item, including apples, peaches and pears are in competition with other food items 

 upon which millions of dollars are being spent for television, periodical, newspaper 

 and radio advertising. The superior eye appeal and glamor of our product has 

 offset somewhat the competitive pressure of this greater amount of advertising; 

 however, we must start blowing our horn louder and longer if we want to maintain 

 our favorable selling position in today's retail market." 



"Apple growers as well as other fresh fruit and vegetable producers are 

 going to have to forego the desire to perform the entire job of growing, packing 

 and selling individually and cooperate in a joint endeavor with fellow growers to 

 develop expert machinery in each of these fields to do the job efficiently. The 



