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Farm
Management
Photo by Tim McCabe, USDA Natural Resource Conservation Service
Eighth Edition

Farm
Management

Ronald D. Kay
Professor Emeritus,
Texas A&M University

William M. Edwards
Professor Emeritus, Iowa State University

Patricia A. Duffy
Professor, Auburn University
FARM MANAGEMENT, EIGHTH EDITION

Published by McGraw-Hill Education, 2 Penn Plaza, New York, NY 10121. Copyright © 2016 by McGraw-Hill
Education. All rights reserved. Printed in the United States of America. Previous editions © 2012, 2008, and 2004.
No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or
retrieval system, without the prior written consent of McGraw-Hill Education, including, but not limited to, in any
network or other electronic storage or transmission, or broadcast for distance learning.
Some ancillaries, including electronic and print components, may not be available to customers outside the United States.
This book is printed on acid-free paper.
1 2 3 4 5 6 7 8 9 0 DOC/DOC 1 0 9 8 7 6 5
ISBN 978-0-07-340094-5
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Library of Congress Cataloging-in-Publication Data
Kay, Ronald D., author.
Farm management / Ronald D. Kay, Professor Emeritus, Texas A&M University, William M. Edwards, Professor
Emeritus, Iowa State University, Patricia A. Duffy, Professor, Auburn University. – Eighth edition.
pages cm
Includes index.
ISBN 978-0-07-340094-5 (alk. paper) – ISBN 0-07-340094-7
1. Farm management. I. Edwards, William M., author. II. Duffy, Patricia Ann, 1955– author. III. Title.
S561.K36 2014
630.68—dc23
2014035732
The Internet addresses listed in the text were accurate at the time of publication. The inclusion of a website does not
indicate an endorsement by the authors or McGraw-Hill Education, and McGraw-Hill Education does not guarantee
the accuracy of the information presented at these sites.
www.mhhe.com
Contents

Preface xi Summary 32
Questions for Review and Further Thought 32

I
Management 3 II
Measuring Management
C H A P T E R 1 Performance 35
Farm Management Now and in the Future 7 C H A P T E R 3
Chapter Outline 7 Acquiring and Organizing Management
Chapter Objectives 7 Information 39
Structure of Farms and Ranches 8
New Technology 11 Chapter Outline 39
The Information Age 12 Chapter Objectives 39
Controlling Assets 13 Purpose and Use of Records 40
Human Resources 13 Farm Business Activities 42
Producing to Meet Consumer Demands 14 Basic Accounting Terms 43
Contracting and Vertical Integration 15 Options in Choosing an Accounting System 43
Environmental and Health Concerns 15 Chart of Accounts 44
Globalization 16 Basics of Cash Accounting 48
Summary 17 Basics of Accrual Accounting 49
Questions for Review and Further Thought 17 A Cash Versus Accrual Example 50
Farm Financial Standards Council
C H A P T E R 2 Recommendations 52
Output from an Accounting System 52
Management and Decision Making 19 Summary 55
Questions for Review and Further
Chapter Outline 19 Thought 55
Chapter Objectives 19
Functions of Management 20
Strategic Farm Management 21 C H A P T E R 4
Decision Making 26 The Balance Sheet and Its Analysis 57
Characteristics of Decisions 29
The Decision-Making Environment in Chapter Outline 57
Agriculture 30 Chapter Objectives 57

v
vi Contents

Purpose and Use of a Balance Sheet 58


Balance Sheet Format 58 III
Asset Valuation 62 Applying Economic Principles 121
Cost-Basis Versus Market-Basis
Balance Sheet 63
Balance Sheet Example 65
C H A P T E R 7
Balance Sheet Analysis 69 Economic Principles: Choosing Production
Statement of Owner Equity 72 Levels 123
Summary 74
Questions for Review and Further Chapter Outline 123
Thought 74 Chapter Objectives 123
The Production Function 124
Marginal Analysis 125
C H A P T E R 5 Law of Diminishing Marginal Returns 126
The Income Statement How Much Input to Use 127
and Its Analysis 77 Using Marginal Concepts 128
Marginal Value Product and Marginal Input
Chapter Outline 77 Cost 132
Chapter Objectives 77 The Equal Marginal Principle 133
Identifying Revenue and Expenses 78 Summary 136
Depreciation 81 Questions for Review and Further
Income Statement Format 85 Thought 137
Accrual Adjustments to a Cash-Basis Income
Statement 87
Analysis of Net Farm Income 89 C H A P T E R 8
Change in Owner Equity 95 Economic Principles: Choosing Input
Statement of Cash Flows 97 and Output Combinations 139
Summary 98
Questions for Review and Further Chapter Outline 139
Thought 99 Chapter Objectives 139
Input Combinations 140
Output Combinations 144
C H A P T E R 6
Summary 149
Farm Business Analysis 101 Questions for Review and Further
Thought 149
Chapter Outline 101
Chapter Objectives 101
Types of Analysis 102 C H A P T E R 9
Standards of Comparison 103 Cost Concepts in Economics 153
Diagnosing a Farm Business
Problem 104 Chapter Outline 153
Measures of Profitability 105 Chapter Objectives 153
Measures of Size 109 Opportunity Cost 154
Efficiency Measures 110 Cash and Noncash Expenses 155
Financial Measures 114 Fixed, Variable, and Total Costs 156
Summary 118 Application of Cost Concepts 159
Questions for Review and Further Economies of Size 163
Thought 118 Long-Run Average Cost Curve 167
Contents vii

Summary 169 The Partial Budget Format 217


Questions for Review and Further Thought 169 Partial Budgeting Examples 219
Appendix. Cost Curves 170 Factors to Consider When Computing Changes
in Revenue and Costs 222
Sensitivity Analysis 222
IV Limitations of Partial Budgeting 223
Final Considerations 224
Budgeting for Greater Profit 175 Summary 224
Questions for Review and Further Thought 225
C H A P T E R 10
Enterprise Budgeting 177 C H A P T E R 13
Chapter Outline 177 Cash Flow Budgeting 227
Chapter Objectives 177
Purpose, Use, and Format of Enterprise Chapter Outline 227
Budgets 178 Chapter Objectives 227
Constructing a Crop Enterprise Budget 180 Features of a Cash Flow Budget 228
Constructing a Livestock Enterprise Budget 185 Constructing a Cash Flow Budget 230
General Comments on Enterprise Budgets 187 Uses for a Cash Flow Budget 238
Interpreting and Analyzing Enterprise Monitoring Actual Cash Flows 239
Budgets 188 Investment Analysis Using a Cash Flow
Summary 191 Budget 239
Questions for Review and Further Thought 191 Summary 242
Questions for Review and Further Thought 243

C H A P T E R 11
Whole-Farm Planning 193
V
Improving Management Skills 245
Chapter Outline 193
Chapter Objectives 193
What Is a Whole-Farm Plan? 193 C H A P T E R 14
The Planning Procedure 194 Farm Business Organization
Example of Whole-Farm Planning 198 and Transfer 249
Other Issues 205
Summary 209 Chapter Outline 249
Questions for Review and Further Thought 209 Chapter Objectives 249
Appendix. Graphical Example of Linear Life Cycle 250
Programming 210 Sole Proprietorship 251
Joint Ventures 252
Operating Agreements 253
C H A P T E R 12 Partnerships 255
Partial Budgeting 215 Corporations 258
Limited Liability Companies 261
Chapter Outline 215 Cooperatives 263
Chapter Objectives 215 Transferring the Farm Business 264
Uses of a Partial Budget 216 Summary 267
Partial Budgeting Procedure 216 Questions for Review and Further Thought 267
viii Contents

C H A P T E R 15 The Discount Rate 329


Net Cash Revenues 330
Managing Risk and Uncertainty 269 Net Present Value 330
Chapter Outline 269
Chapter Objectives 269 C H A P T E R 18
Sources of Risk and Uncertainty 270
Enterprise Analysis 333
Risk-Bearing Ability and Attitude 272
Expectations and Variability 273 Chapter Outline 333
Decision Making Under Risk 278 Chapter Objectives 333
Tools for Managing Risk 281 Profit and Cost Centers 334
Summary 290 The Accounting Period 335
Questions for Review and Further Thought 290 Types of Enterprises 336
Land Costs 341
C H A P T E R 16 Verifying Production 342
Accounting Systems 343
Managing Income Taxes 293 Summary 344
Questions for Review and Further Thought 345
Chapter Outline 293
Chapter Objectives 293
Types of Income Taxes 294 VI
Objectives of Tax Management 295
The Tax Year 295
Acquiring Resources
Tax Accounting Methods 296 for Management 347
The Tax System and Tax Rates 298
Some Tax Management Strategies 299 C H A P T E R 19
Depreciation 302
Capital Gains 306 Capital And Credit 351
Summary 309 Chapter Outline 351
Questions for Review and Further Thought 309 Chapter Objectives 351
Economics of Capital Use 352
C H A P T E R 17 Sources of Capital 353
Types of Loans 355
Investment Analysis 311 The Cost of Borrowing 362
Sources of Loan Funds 363
Chapter Outline 311
Establishing and Developing Credit 365
Chapter Objectives 311
Liquidity 366
Time Value of Money 312
Solvency 368
Investment Analysis 317
Summary 370
Financial Feasibility 322
Questions for Review and Further Thought 371
Income Taxes, Inflation, and Risk 323
Summary 326
Questions for Review and Further Thought 327 C H A P T E R 20
Appendix. An Example of an Investment
Land: Control and Use 373
Analysis 328
Initial Cost 328 Chapter Outline 373
Estimating Cash Expenses and Revenues 328 Chapter Objectives 373
Contents ix

Factors that Affect Farmland Values 374 Summary 422


The Economics of Land Use and Management 375 Questions for Review and Further Thought 423
Controlling Land: Own or Lease? 377
Buying Land 379
Leasing Land 384
C H A P T E R 22
Conservation and Environmental Concerns 394 Machinery Management 425
Summary 396
Questions for Review and Further Thought 396 Chapter Outline 425
Cash Farm Lease 397 Chapter Objectives 425
Estimating Machinery Costs 426
Examples of Machinery Cost Calculations 431
C H A P T E R 21 Factors in Machinery Selection 433
Human Resource Management 403 Alternatives for Acquiring Machinery 436
Improving Machinery Efficiency 441
Chapter Outline 403 Summary 444
Chapter Objectives 403 Questions for Review and Further
Characteristics of Agricultural Labor 405 Thought 445
Planning Farm Labor Resources 405
Measuring the Efficiency of Labor 410 Appendix 446
Improving Labor Efficiency 411
Improving Managerial Capacity 412 Glossary 452
Obtaining and Managing Farm Employees 413 Index 460
Agricultural Labor Regulations 420
Preface

F arms and ranches, like other small busi-


nesses, require sound management to survive
and prosper. The continual development of new
explanation of the concept of management and
the decision-making process, with an emphasis
on the importance of strategic planning and
agricultural technologies means that farm and decision making.
ranch managers must stay informed of the latest Part II presents the basic tools needed to
advances and decide whether to adopt them. measure management performance, financial
Adopting a risky, unproven technology that fails progress, and the financial condition of the farm
to meet expectations can cause financial diffi- business. It discusses how to collect and organize
culties or even termination of the farm business. accounting data and how to construct and ana-
On the other hand, failing to adopt profitable lyze farm financial statements. Data from an
new technologies will put the farm business at a example farm is used to demonstrate the analysis
competitive disadvantage that could also prove process in the chapter on farm business analysis.
disastrous in the long run. In addition, changing Part III contains three chapters on basic
public policies regarding environmental protec- microeconomic principles and cost concepts.
tion, taxes, and income supports can make certain The topics in this part provide the basic tools
alternatives and strategies more or less profitable needed to make good management decisions.
than they have been in the past. Finally, changes Students will learn how and when economic
in consumer tastes, the demographic makeup of principles can be used in management decision
our population, and world agricultural trade poli- making, along with the importance of the differ-
cies affect the demand for agricultural products. ent types of economic costs in both the short run
The continual need for farm and ranch man- and the long run. Economies and diseconomies
agers to keep current and update their skills of size and their causes are discussed.
motivated us to write this eighth edition. Practical use of budgeting as a planning tool
This book is divided into six parts. Part I is emphasized in Part IV. The discussion includes
begins with the chapter “Farm Management chapters on enterprise, partial, whole farm, and
Now and in the Future.” It describes some of cash flow budgets. The format and use for each
the technological and economic forces driving type of budget, sources of data to use, and break-
the changes we see in agriculture. By reading even analysis techniques are discussed in detail.
this chapter, students will find an incentive to Topics necessary to further refine a manager’s
study farm management and an appreciation for decision-making skills are included in Part V. Farm
the management skills modern farm managers business organization and transfer, risk control,
must have or acquire. Part I concludes with an income tax management, investment analysis, and

xi
xii Preface

enterprise analysis are discussed. The chapter Updated material about:


on income tax management has been updated
• Income tax brackets and rates
with the latest changes available. The chapter on
• 2012 Census of Agriculture data
investment analysis includes a discussion of the
• Current commodity price levels for
concepts of annual equivalent and capital recov-
examples
ery values. The final chapter discusses how to
• Current production costs for
separate the whole-farm analysis into profit cen-
examples
ters and cost centers.
• Multiple peril crop insurance
Part VI discusses strategies for acquiring the
• Land values and rental rates
resources needed on farms and ranches, including
• Farm financial data and benchmark
capital and credit, land, human resources, and
values
machinery. The human resource chapter includes
• Agricultural labor laws
sections on improving managerial capacity and
bridging the cultural barriers that may be encoun- New or expanded discussion of:
tered in managing agricultural labor.
• Chart of accounts
New materials to help instructors have been
• Treatment of forward-priced commodities
incorporated into the current edition’s Web site.
on the balance sheet
An electronic slide presentation covering each
• Treatment of deferred taxes and capital
chapter, a test question bank, class exercises,
gains on the balance sheet
and answers to the end-of-chapter questions can
• Definitions and equations for FFSC
be found at www.mhhe.com/kay8e.
analysis measures
The authors would like to thank the instruc-
• Financial repayment capacity
tors who have adopted the previous edition for
measures
their courses and the many students who have
• Using calculus to find optimal input
used it both in and out of formal classrooms.
levels
Your comments and suggestions have been
• Break-even yields and prices
carefully considered and many were incorpo-
• Limited liability companies
rated in this edition. Suggestions for future
• Gift and estate taxes
improvements are always welcome. A special
• Adjusting yield estimates for trends
thanks goes to the McGraw-Hill reviewers for
• USDA farm commodity programs
their many thoughtful ideas and comments pro-
• Amortization of balloon payment
vided during the preparation of this edition.
loans
New to this edition: • Farm lease example
• Employee benefits and bonuses
• 56 new and revised tables
• 16 new and revised figures Ronald D. Kay
• 14 new and revised boxes William M. Edwards
• 12 new glossary terms Patricia A. Duffy
About the Authors

Ronald D. Kay is Professor Emeritus in the Department


of Agricultural Economics at Texas A&M University.
Dr. Kay taught farm management at Texas A&M
University for 25 years, retiring at the end of 1996.
He was raised on a farm in southwest Iowa and received
his B.S. in agriculture and Ph.D. in agricultural economics
from Iowa State University. He has experience as both
a professional farm manager and a farm management
consultant, and he maintains an active interest in a
farming operation. He is a member of several professional
organizations, including the American Society of Farm
Managers and Rural Appraisers, where he was a certified
instructor in their management education program.
Dr. Kay received the Society’s Excellence in Education
award for 2002.

William M. Edwards is Professor Emeritus of Economics


at Iowa State University, from where he received his
B.S., M.S., and Ph.D. degrees in agricultural economics.
He grew up on a family farm in south-central Iowa, and
worked as an agricultural economist with the Farmer’s
Home Administration and a Peace Corps volunteer with
the Colombian Agrarian Reform Institute. From 1974
through 2013, he taught on-campus and distance education
courses and carried out extension programs in farm
management at Iowa State University. In 2013, he
received the Distinguished Service to Agriculture Award
from the American Society of Farm Managers and Rural
Appraisers. Dr. Edwards served as president of the
Extension Section of the Agricultural and Applied
Economics Association in 2006–2007.

xiii
xiv About the Authors

Patricia A. Duffy is Professor in the Department of


Agricultural Economics and Rural Sociology at Auburn
University, where she has taught farm management since
1985. She grew up in Massachusetts and received her B.A.
from Boston College. After finishing this degree, she
served as a Peace Corps volunteer for two years, teaching
basic agriculture sciences in a vocational secondary
school. She received her Ph.D. in agricultural economics
from Texas A&M University. Her research papers in farm
management and policy have been published in a variety
of professional journals. In 1994, she received an award
from the Southern Agricultural Economics Association
for distinguished professional contribution in teaching
programs. In 2001, she received Auburn University’s
College of Agriculture teaching award.
Farm
Management
© Photo by Jeff Vanuga, USDA Natural Resources Conservation Service
I
Management

G ood management is a crucial factor in the success of any business. Farms and
ranches are no exception. To be successful, farm and ranch managers need to spend
more time making management decisions and developing management skills than
their parents and grandparents did.
This is because production agriculture in the United States and other countries is
changing along the following lines: more mechanization, increasing farm size, contin-
ued adoption of new production technologies, growing capital investment per worker,
more borrowed or leased capital, new marketing alternatives, and increased business
risk. These factors create new management problems, but also present new opportuni-
ties for managers with the right skills.
These trends will likely continue throughout the rest of the twenty-first century.
Farmers will make the same type of management decisions as in the past, but will be
able to make them faster and more accurately. Advances in the ability to collect, trans-
fer, and store data about growing conditions, pest and disease problems, and product
quality will give managers more signals to which to respond. Moreover, future farm
and ranch operators will have to balance their personal goals for an independent life-
style, financial security, and rural living against societal concerns about food safety,
environmental quality, and agrarian values.

3
The long-term direction of a ranch or farm is determined through a process called
strategic planning. Farm families establish goals for themselves and their businesses
based on their personal values, individual skills and interests, financial and physical
resources, and the economic and social conditions facing agriculture in the next gen-
eration. They can choose to emphasize wider profit margins or higher volumes of
production or to produce special services and products. After identifying and selecting
strategies that will help them achieve their goals, farm and ranch operators employ
tactical management to carry them out. Many decisions need to be made and many
alternatives analyzed. Finally, the results of those decisions must be monitored and
evaluated and control measures implemented where results are not acceptable.
Chapter 1 discusses factors affecting the management of farms and ranches now
and in the coming decades. These factors will require a new type of manager who can
absorb, organize, and use large amounts of information—particularly information re-
lated to new technologies. Resources will be a mix of owned, rented, and borrowed
assets. Products will need to be more differentiated to match consumer tastes and
safety standards. Industrial uses of agricultural products will increase relative to food
uses. The profitability of a new technology must be determined quickly and accurately
before it is or is not adopted. A modern manager will also need new human resource
skills as the number and diversity of employees increase.
Chapter 2 explains the concept of management, including strategic planning and
tactical decision making. What is management? What functions do managers perform?
How should managers make decisions? What knowledge and skills are needed to be a
successful manager? Answers to the first three questions are discussed in Chapter 2.
Answers to the last question will require studying the remainder of the book.
© Comstock/Stockbyte/Getty Images
Farm Management Now
1
and in the Future

Chapter Outline Chapter Objectives


Structure of Farms and Ranches 1. Discuss how changes in the structure and
New Technology technology of agriculture will affect the
The Information Age next generation of farm and ranch
managers
Controlling Assets
Human Resources 2. Identify the management skills that future
Producing to Meet Consumer Demands farmers and ranchers will need to respond
to these changes
Contracting and Vertical Integration
Environmental and Health Concerns
Globalization
Summary
Questions for Review and Further Thought

What will future farm managers be doing as we They will still be deciding input and output
progress through the remaining decades of the levels and combinations and when and how to
twenty-first century? They will be doing what acquire additional resources. They will continue
they are doing now, making decisions. They will to analyze the risks and returns from adopting
still be using economic principles, budgets, re- new technology, making new capital investments,
cord summaries, investment analyses, financial adjusting farm size, changing enterprises, and
statements, and other management techniques to seeking new markets for their products.
make those decisions. What types of decisions Will anything about management decisions
will managers be making in future decades? in the future be different? Yes. While the broad

7
8 Part I Management

types of decisions being made will be the same, production per farm has increased considerably,
the details and information used will change. as shown in Figure 1-2. Several factors have con-
Technology will continue to provide new inputs tributed to this change.
to employ and new, more specialized products First, labor-saving technology in the form
for production and marketing. Management of larger agricultural machinery, more efficient
information systems, aided by electronic inno- planting and harvesting systems, automated
vations, will provide more accurate and timely equipment, and specialized livestock buildings
information for use in making management has made it possible for fewer farm workers to
decisions. Farmers and ranchers will have to produce more crops and livestock. Second, em-
compete more aggressively with nonagricultural ployment opportunities outside agriculture have
businesses for the use of land, labor, and capital become more attractive and plentiful, encourag-
resources. As in the past, the better managers ing labor to move out of agriculture. Also during
will adapt to these changes and efficiently this period of change, the cost of labor has in-
produce commodities that consumers and creased faster than the cost of capital, making it
industry want. profitable for farm managers to substitute capital
for labor in many areas of production.
Third, farm and ranch operators have as-
Structure of Farms pired to earn higher levels of income and to
enjoy a standard of living comparable to that of
and Ranches nonfarm families. One way to achieve a higher
The number of farms in the United States has been income has been for each farm family to con-
decreasing since 1940, as shown in Figure 1-1. trol more resources and produce more output
The amount of land in farms and ranches has while holding costs per unit level or even de-
been relatively constant; this means the average creasing them. Other managers, though, have

7,000

6,000

5,000
Number of farms

4,000

3,000

2,000

1,000

0
40

45

50

54

59

64

69

74

78

82

87

92

97

02

07

12
19

19

19

19

19

19

19

19

19

19

19

19

19

20

20

20

Year

Figure 1-1 Number of farms in the United States (1000s).


Source: U.S. Census of Agriculture, USDA. Definition adjusted in 1997.
Chapter 1 Farm Management Now and in the Future 9

$200,000
$180,000
$160,000

Sales per farm $140,000


$120,000
$100,000
$80,000
$60,000
$40,000
$20,000 50
40

45

54

59

64

69

74

78

82

87

92

97

02

07
12
19
19

19

19

19

19

19

19

19

19

19

19

19

20

20
20
Year

Figure 1-2 Total sales per farm in 2002 dollars.


Source: U.S. Census of Agriculture, USDA. Definition adjusted in 1997.

worked to increase profit margins per unit while Part-time farmers


keeping the size of their business the same. The and ranchers
desire for an improved standard of living has
provided much of the motivation for increasing
farm size, and new technology has provided the Low-volume, high- High-volume, low-
means for growth. value producers margin producers
Fourth, some new technology is available
only in a minimum size or scale, which encour-
ages farmers to expand production and spread Specialty product
and service providers
the fixed costs of the technology over enough
units to be economically efficient. Examples in-
clude grain drying and handling systems, four- Figure 1-3 Alternative strategies for farm
wheel drive tractors, large harvesting machines, and ranch businesses.
confinement livestock buildings, and automated
cattle feedlots. Perhaps even more important are
the time and effort required for a manager to the same economies as larger operations. Examples
learn new skills in production, marketing, and include jointly owning machinery and equipment
finance. These skills also represent a fixed in- with other producers, outsourcing some tasks
vestment and thus generate a larger return to the such as harvesting or raising replacement breed-
operator when they are applied to more units of ing stock, and joining small, closed cooperatives.
production. Chapter 9 contains more discussion As illustrated in Figure 1-3, farmers and
about economies of size in agriculture. ranchers will choose among four general busi-
Operators who do not wish to grow their ness strategies: low-volume, high-value produc-
individual businesses will look for alliances and ers; high-volume, low-margin producers;
partnerships, both formal and informal, with specialty product and service providers; and
other producers that will allow them to achieve part-time operators.
10 Part I Management

Low-Volume, High-Value Producers the services of the business and interacting with
Lack of access to additional land, labor, and capi- customers are also important ingredients for
tal effectively limits the potential of many grow- success.
ers for expanding their businesses. For them, the
key to higher profits is producing higher valued Part-Time Operators
commodities. Some look for nontraditional enter- Many farmers hold other jobs in addition to
prises such as emus, bison, asparagus, or pump- farming. Part-time farmers and ranchers account
kins. Promotion, quality standards, and marketing for about 52 percent of the U.S. total, according
become critical to their success. Others try varia- to data from the U.S. Census of Agriculture.
tions of traditional commodities, such as organi- However, they produce only 13 percent of total
cally grown produce, tofu soybeans, free-range agricultural sales. Many of these small-scale
poultry, or seed crops. Margins may be increased operations are lifestyle farms run by people who
even more through added processing and direct enjoy producing crops and livestock even when
marketing. Such enterprises often involve high the potential profits are low. Their primary man-
production risks, uncertain markets, and intensive agement concerns are to limit their financial risk
management, but can be quite profitable even on and balance farm labor needs with off-farm
a small scale. employment. A combination of farming and non-
farm employment may provide the most accept-
able level of financial security and job satisfaction
High-Volume, Low-Margin Producers
for many families.
There will always be a demand for generic feed Farms of all sizes will continue to find their
grains, oil seeds, fruits and vegetables, cotton, niche in U.S. agriculture. Naturally, the largest
and livestock products. Many producers choose farms contribute the highest proportion of total
to stick with familiar enterprises and expand sales of farm products, as shown in Table 1-1.
production as a means of increasing their in- The consolidation of small- and medium-sized
come. For them, squeezing every nickel out of farms and ranches into larger units will likely
production costs is critical. Growing the busi- continue, as older operators retire and their land
ness usually involves leveraging it with bor- is combined with existing farm units.
rowed or rented assets. Profit margins are thin, Management and operation of farms by
so it is critical to set a floor under market prices family units will continue to be the norm. This
or total revenue through insurance products and is especially true for agricultural enterprises that
marketing contracts.

Specialty Product and Service Providers Table 1-1 Distribution of Farm Sales,
A third strategy is to specialize in just one or United States
two skills and become one of the best at per-
forming them. Examples are custom harvesting,
Sales class Percent of farms Percent of sales
custom cattle feeding, raising seed stock or
replacement breeding stock, repairing and refur- Less than $50,000 75.4 3.0
bishing equipment, hauling and applying manure, $50,000–$99,999 6.1 2.3
and applying pesticides and fertilizers. Even $100,000–$249,999 6.6 5.8
agri-tourism can be considered a special service $250,000–$999,999 8.1 22.5
to consumers. Often a key component of this strat- $1,000,000 or more 3.8 66.4
egy is making maximum use of expensive, highly
specialized equipment and facilities. Marketing Source: 2012 Census of Agriculture, USDA.
Chapter 1 Farm Management Now and in the Future 11

cannot concentrate production into a small composition such as higher protein or oil con-
geographic area, such as crop production or tent. Livestock performance may be improved
extensive grazing of cattle or sheep. Enterprises by introducing new genetic characteristics or
that can centralize production, such as poultry by improving nutrient use. New nonfood uses
and hog production or cattle feeding, can be for agricultural products, such as biodiesel and
more easily organized into large-scale business ethanol, will open new markets, but may also
entities. Management of these farms will be cause changes in the desired characteristics or
segregated into several layers, and areas of composition of products grown specifically for
responsibility will be more specialized. Most these uses.
managers of centralized production enterprises One example of a recent technology is the
will be salaried employees rather than owner- use of global positioning systems (GPS) to pin-
operators. point the exact location of equipment in a field.
Some family farm businesses will find that By combining satellite reception with a yield
by cooperating with their neighbors and rela- monitor on harvesting equipment, the crop
tives they can achieve many of the same advan- yield can be measured and recorded continu-
tages that larger-scale operations enjoy. Decades ously for every point in the field. Variations in
ago, farmers formed grain threshing or haying yield due to soil type, previous crops, different
crews to take advantage of new harvesting tech- tillage methods, and fertilizer rates can be
nology. Today, several farmers join together to identified quickly and recommendations made
guarantee a constant, uniform supply of live- to correct problems. This technology is now
stock or crops in a quantity that can be trans- being used to automatically adjust the applica-
ported and processed efficiently. As the number tion rates of fertilizer and chemicals as the
of input suppliers and processing firms dimin- applicator moves across the field. Fertilizer and
ishes, producers must collaborate to maintain chemicals are applied only at the rates and
their bargaining position. This is one example of locations needed, which improves efficiency
how a cooperative effort or strategic alliance and lowers costs.
can provide economic benefits. Another exam- Automated GPS can also keep crop pro-
ple is several operators forming an input pur- duction machinery on a consistent course, when
chasing group to achieve quantity discounts or used with automatic guidance systems on trac-
purchasing large equipment jointly. A small tors, harvesters, and sprayers. Field time and
amount of managerial independence must be operator fatigue are reduced, and more efficient
sacrificed to conform to the needs of the group. use of crop inputs results from less overlapping
However, personal ownership and operation of of applications. Operator errors while using
each business is preserved. equipment at night are reduced as well.
These technologies and others yet to be de-
veloped will provide the farm manager with a
continual challenge. Should this or any new
New Technology technology be adopted? The cost of any new
Agricultural technology has been evolving for technology must be weighed against its benefits,
many decades and will continue to do so. The which may come in several forms. There may be
field of biotechnology offers possible gains in increased yields, an improvement in product
production efficiency, which may include crop quality, less variation in yield, or a reduced im-
varieties engineered to fit growing conditions pact on the environment. Decisions about if and
at particular locations, resistant to herbicide when to adopt a new technology will affect the
damage or to certain insects and diseases, profitability and long-term viability of a farm or
or having a more highly valued chemical ranch business.
12 Part I Management

The Information Age few yards, analyze it instantly, and record the
results by field location. Satellite photographs
Many decision-making principles and budgeting and other techniques may provide information
tools have been underused in the past. Individual on the specific location of weed and insect infes-
farm data needed to use them were not available, tations or moisture, permitting a limited, pin-
or the process for analyzing the data was too point application of pesticide or irrigation water.
complex. Recent years have seen rapid changes Miniature electronic sensors will be able to
in methods of data collection, analysis, and inter- collect and record information from livestock by
pretation. Electronic sensors and processors used continuously monitoring individual animal per-
in large-scale industries are now accessible and formance levels, feed intake, and health status.
affordable to farms and ranches, as well as to When undesirable changes are detected, there
purchasers of agricultural products. could be automatic adjustment in environmental
Not only will more whole-farm data be conditions and feed rations. This information
available, but data specific to small land areas or could also be related back to genetic background,
to individual animals will also become more physical facilities, feed rations, health programs,
common. These specific data will help managers and other management factors to improve and
customize the treatment of each acre of land or fine-tune animal performance. Ear tags, electronic
each head of livestock. Yields can be monitored implants, and detailed production records can
and recorded as harvesting machines move provide identity preservation of both crops
across the field. GPS can use satellite signals to and livestock from the original producer to the
identify the exact position of harvesting units final consumer.
when the data are collected. Automated ma- Financial transactions may be recorded and
chines may be able to take a soil sample every automatically transferred to accounts through

bchba_nm
Box 1-1 Meeting New Challenges: Berilli Farms

B erilli Farms, Inc. consists of only a few


hundred acres. These acres have been transformed
The Berillis use sophisticated crop simulation
computer models to formulate these recommenda-
from growing common field grains to producing tions, taking into account current input prices and
high-value specialty crops. Fresh vegetables are sold the selling prices for their products that they have
to a local wholesale grocer. High-protein alfalfa has contracted or hedged. Each week they review
been contracted to a dairy in the next county. High- their cash-flow position and electronically trans-
quality turf grass seed goes to a chain of nurseries. fer operating funds into their business account.
Keeping a stable work crew of 25 machinery All their crops are protected by multiple peril crop
operators, truck drivers, sorters, and crop scouts is insurance and are committed to delivery accord-
a real test of the Berilli family’s human relations ing to a detailed production contract.
skills. All of their employees are trained to gather The grocers, dairies, and nurseries they supply
data on crop growth and yields from monitors send them real-time data about the results of qual-
mounted on machinery or in fields, and to down- ity tests performed on their products and the vari-
load it into their handheld computers. Each morn- eties selling the fastest. At the end of the year, the
ing before chemicals or fertilizers are applied, Berillis analyze the costs and returns from each
a variable-rate application plan is read into the crop, field, and buyer and replace the least profit-
control units of the applicators. able ventures with more promising ones.
Chapter 1 Farm Management Now and in the Future 13

the use of debit cards and bar-code symbols markets. Credit will also be available from
whenever purchases and sales occur. Smaller nontraditional sources such as input suppliers
purchases may be made with preloaded cash and processors. Farm managers will increas-
cards. These transactions can also be posted ingly have to compete with nonfarm businesses
automatically to the accounting system for an for access to capital, as the rural and urban
individual farm and classified by enterprise, financial markets become more closely tied
production period, vendor, or business unit. together. This competition will necessitate
These technological advances mean that the more detailed documentation of financial per-
information in a farmer’s accounting system formance and credit needs, and more confor-
can be accurate and up to date at the end of mity to generally accepted accounting principles
each day. and performance measures. Farmers will need
Personal computers have greatly enhanced to use standard accounting methods and princi-
capacities to receive, process, and store infor- ples and perhaps even have audited financial
mation and to communicate with outside data statements to gain access to commercial capital
sources. Portable computers and personal data markets.
recorders allow precise decisions to be made in Standardized records and online databases
the pickup or on the tractor, as well as in the of- will help make comparative analysis with simi-
fice. The first computers were used primarily to lar farms more meaningful. The farm manager
sort data and do calculations, but increasingly will have to decide whether to train an employee
computers are being designed and used as com- to carry out the required accounting and analysis
munication tools. Wireless transmission tech- or hire this expertise from outside the business.
nology and global computer networks are Even if outside help is used, the manager must
increasing the availability, speed, and accuracy have the skills and knowledge to read, interpret,
of information sharing about weather, markets, and use this accounting information.
and other critical events. Controlling assets is becoming more impor-
Managers in the past century often found tant than owning them. Farmers have long
the lack of accurate, timely, and complete infor- gained access to land by renting it. Leasing ma-
mation to be frustrating. Modern managers may chinery, buildings, and livestock has been less
still be frustrated by information; only the cause common, but will likely increase in use. Custom
of their frustration will be the large quantity and farming and contract livestock production are
continual flow of information available to them. other means by which a good manager can ap-
A vital task for managers will be to determine ply his or her expertise without taking the finan-
which information is critical to their decision cial risks of ownership. When other parties
making, which is useful, and which is irrele- supply much of the capital, the operator can pro-
vant. Even when this is done, the critical and duce a larger volume at less risk, although the
useful information must be analyzed and stored profit margin may be smaller.
in an easily accessible manner for future
reference.
Human Resources
Farm managers are currently depending more
Controlling Assets on a team of employees or partners to carry out
Outside capital will continue to be needed to specific duties in the operation. Working with
finance large-scale operations. Management of other people will become a more important fac-
traditional sources of farm credit, such as rural tor in the success of the operation. Motivation,
banks, is becoming more vertically integrated, communication, evaluation, and training of
and funds will come from national money personnel will become essential skills.
14 Part I Management

Farm businesses will have to offer wages, Producing to Meet


benefits, and working conditions competitive
with nonfarm employment opportunities. They
Consumer Demands
will likely have to follow more regulations re- Agriculture has long been characterized by the
garding worker safety in handling farm chemi- production of undifferentiated commodities.
cals and equipment and see that employees are Historically, grain and livestock products from
properly trained in the use of new technologies. different farms have been treated alike by buyers
Many of the most efficient farms and ranches if these products met basic quality standards and
will be those with a small number of operators grades. The trend is to offer more highly special-
or employees who have specialized responsibili- ized and processed food products to the con-
ties. They will have mastered the communica- sumer, so buyers are beginning to implement
tion and teamwork skills needed in such stricter product standards for producers.
operations. For example, livestock processors want uni-
Modern managers will need to take advan- form animals with specific size and leanness
tage of the expertise of paid consultants and advi- characteristics to fit their processing equipment,
sors. For some very technical decisions, such as packaging standards, and quality levels. Improved
diagnosing animal and plant diseases, developing measuring devices, product identification, and
legal contracts, or executing commodity pricing data processing will make it easier to pay differ-
strategies, the manager may pay a consultant to ential prices to producers based on product char-
make recommendations. In other cases, the farm acteristics and to trace each lot to its point of
manager will obtain information from outside origin. As processors invest in larger-scale plants,
sources but do the analysis and decision making. they must operate them at full capacity to reduce
Examples include formulating livestock rations costs and remain competitive. Producers who can
or crop fertility programs based on the results assure the packer of a continuous supply of high-
of laboratory tests. In either case, the successful quality, uniform animals will receive a premium
manager must learn to communicate clearly and price. Those who cannot may find themselves
efficiently with the consultant. This means under- shut out of many markets or forced to accept a
standing the terminology and principles involved lower price.
and summarizing information in a concise form In crop production, the protein and oil con-
before submitting it. tent of grain and forages is becoming easier to

bchba_nm
Box 1-2 Custom Pork Production: Producing for the Market

H oward Berkmann continues to produce tradi-


tional cross-bred, uniform lean hogs for the local
A few years ago, Howard started a specialty
group of Berkshire hogs designed for the Japanese
packing plant. One morning each week, he deliv- market. The particular coloring and marbling of
ers a load of hogs, and by evening, he receives by the meat earns him a premium price. He negoti-
electronic mail a summary of the carcass data and ated an agreement with a Berkshire breeder in a
pricing formula from the packer. He downloads the neighboring state to supply him with a regular
information onto his swine production computer stream of replacement gilts. Several times a week,
software and prints out a current summary for the he checks the Japanese livestock markets for for-
facility from which the hogs came and the genetic ward pricing opportunities, and he has visited his
group they represented. marketing contact in Tokyo.
Exploring the Variety of Random
Documents with Different Content
Chapter XIII
England

That evening we moved slowly up the Mersey and at nine o’clock


anchored out in the stream in full view of the city of Liverpool. We
could not see it very well, for throughout the city the lights were
dimmed and windows were darkened.
All along the Irish coast the impression was one of peace and quiet,
a spiritual something. But England seemed to give one the idea of a
great machine, working slowly, steadily, untiringly. One was spiritual;
the other material. That was my first impression of England as a
nation, and that impression remained with me during my stay in the
country. Every time I returned on leave from France I found it always
the same. England, as a nation, seemed to be wonderfully
organized, and that whole organization seemed to run smoothly,
powerfully, and heavily. Each individual had his special work to do in
that colossal workshop called England. He knew how to do that, and
he did it, quietly, methodically, and well. But, taken away from his
own work, he seemed to lack resource—the resource and initiative
of the men from the New World.
We entrained early in the morning. For most of us it was our first
experience with the compartment cars of the Old World—little
compartments running the width of the car, a door opening from
each side of the car, with two seats running from one side to the
other, each holding from three to five people, who sat facing each
other.
We passed through many quaint towns and many large cities, and it
was evening when we came into the quiet little station of Liphook.
We were due there at two o’clock, but there had been many delays
along the way. Sometimes the lads had pulled the rope and had
stopped the train; and each time a stolid brakeman had opened the
door of compartment after compartment, asking solemnly: “’oo pulled
the reope?” Of course no one gave him the information he asked;
whereupon he closed each door and went patiently on to the next
compartment.
Chapter XIV
In Camp

I have often remarked that English writers use the word “depression”
much more frequently than do writers on this side of the water, and I
have often wondered what could be the reason for this. I had not
passed one week in England before I knew. A few days in an English
military camp will give one an idea of what depression is.
The military camp to which we were sent was Bramshott—a great
collection of long, low, one-story huts, built row on row, with a door at
each end, opening into muddy lanes that ran the whole length of the
camp. It was raining mildly the evening we arrived and we marched
in the darkness for three miles along soft muddy roads, and now and
again we splashed through a puddle, though we tried to avoid them.
There seems to be an especially slippery quality about the mud of
England,—to say nothing of that of France—that makes it very
difficult to retain one’s balance. My cane, which according to military
regulations I always carried, for the first time now proved useful. Day
after day as the soldiers of the camp drilled in the soft, muddy
squares, their movements resembled sliding more than orderly
marching. Sometimes thick pads of the soft, yellow mud clung
heavily to their feet; very often a gentle drizzle of rain fell, and nearly
always the sky was dark grey and sombre, so that one wondered no
longer why the word “depression” should be so frequently used in
English literature.
But notwithstanding the mud and the dark skies, many of us grew to
like England. There were many quaint, winding roads hedged in
places with hawthorne bushes or spruce or boxwood. These led us
into delightful little country villages with their old free-stone churches,
sometimes covered with ivy that often ran for a long distance up the
old Norman tower.
Chapter XV
The Cenacle

Not more than three miles from the camp was situated the convent
of the Sisters of the Cenacle, a beautiful three-story building of red
brick and stucco hidden away among great hemlock, spruce and
cypress trees. It is a kind of rest house, where at certain seasons of
the year retreats are given for ladies, who come from different parts
of England and pass a week at the convent.
All during the war there was an open invitation to the Catholic
soldiers of Bramshott Camp to visit the convent on Sunday afternoon
and assist at Benediction of the Most Blessed Sacrament.
There were three or four different ways of going to Grayshott, near
which the Convent of the Cenacle was situated. One of these was a
foot-path which led first through a moor, covered in summer with
purple heather, then through bracken, almost as high as an average
man, and bunches of green gorse bushes that blazed light yellow at
certain seasons with flowers resembling in shape the sweet-peas. It
was a quaint little path, passing on its way “Wagner’s Wells” a chain
of what we on this side of the Atlantic would call ponds, in a low,
wooded valley. In summer these were very pretty when the full-
leafed branches of the trees hung low over the Wells, and the water
was almost wholly hidden by tiny white flowers that rested on the
surface. All during the war, on Sunday afternoons, a long, irregular
line of khaki-clad figures went leisurely along the foot-path to
Grayshott, passed scenery strange though pleasing, mounted quaint
rustic stiles till they came to the convent of the Sisters of the
Cenacle.
The first Sunday I visited the Convent there were so many soldiers
present that the little chapel could not contain all. I learned
afterwards that this had happened so frequently that, in order that all
might be present at Benediction, the good Sisters had asked for and
obtained a general permission to have the services on the lawn just
in the rear of the chapel.
Benediction was given by a little Belgian who was doing chaplain’s
work among the Canadians at Bramshott, while Father Knox, a
recently converted Anglican clergyman, led the soldiers in singing
the hymns. Little red hymn-books, which the English government
had supplied the Catholic soldiers, were passed around to each
soldier. It was a beautiful sight there on that English lawn, as all knelt
grouped together, officer and soldier, priest, sister, while the white
Host was raised to bless us all. Then the lads sang strongly and
clearly that beautiful hymn, “Hail, Queen of Heaven,” that was sung
so often during the war under many different conditions. The
Irishmen sang it as they advanced to take a difficult position that the
English had failed to take at Féstubert.
The Sisters dispensed hospitality; large teapots of tea and plates
stacked high with thin slices of bread and butter, and baskets of thick
slices of yellow cake with currants in it. Then in the evening the
soldiers walked back to camp through winding foot-paths and over
stiles.
I am sure there are many men scattered over the country who will
remember gratefully the Sisters of the Cenacle at Grayshott. It must
have inconvenienced them greatly, yet Sunday after Sunday, all
during the war, soldiers went to the convent, and always the Sisters
treated them most hospitably.
On Sundays, when the number of men present was not too large,
Benediction was given in the Sisters’ chapel. It was a very pretty little
chapel and on the altar, day and night, the Sacred Host was exposed
for perpetual adoration; and always two Sisters knelt to adore. On
the Gospel side of the altar stood a beautiful statue of the Blessed
Virgin which was almost covered with the military badges worn by
soldiers of the different battalions. In some way known to women the
good Sisters had draped a mantle about the statue, and to this was
pinned the badges of these modern knights.
After Benediction the lads would all come to a large room where tea
would be served. Often among the little khaki-clad groups a Sister of
the Cenacle would be seen standing, or sitting, listening to the
stories told of the country far away across the seas. The Sisters
wore a black habit, a small purple cape which reached to the elbows,
and a white cap covered by a black veil, except for a one inch
crimped border around the face. Sometimes, when it was time to
leave the convent, a certain group would step forward to say good-
bye to the Sisters and to ask their prayers. These would be men
ordered to leave during the week as a draft for some battalion in the
trenches. And the lads “would be remembered in the Sacred
Presence there, where remembrances are sacred and each memory
holds a prayer.” Day and night, as the Sisters knelt before the Lord
and offered their continuous prayers for a world that seemed to have
forgotten Him, special prayers were said for those whose badges
hung on Our Lady’s mantle.
Chapter XVI
The Battalion is Broken Up

We were not in England three weeks when orders came for a draft of
men to reinforce a battalion that had suffered severe losses at the
front. In a few days one hundred and fifty men left for France. We
thought at the time that reinforcements would soon come to us from
Canada, but not much more than a week passed till we were called
on for another draft. This time the order was that three hundred and
fifty men be sent to the Eighty-seventh Battalion.
This second order came as a shock to us all. Many of the officers
had been in the battalion for almost a year; they had watched it grow
strong and numerous and had helped to form, the thing most
essential in a battalion, an “esprit de corps.” I had never thought of
going to the front except as a unit. The idea of our being broken up
had never entered my mind, but before Christmas came our battalion
had lost its identity as the One Hundred and Thirty-second Battalion,
and the majority of the men had gone to join different units at the
front. It was impossible for me to be with all my men, as there were
no two drafts in the same brigade; still, I thought that I might be
permitted to go as chaplain to the brigade in which was the largest
number of my men, so I obtained permission to go to London to
explain matters to the senior chaplain. He was very kind, but he said
I must await my turn; there were other chaplains whose battalions
had undergone the same process of annihilation as had mine. These
must go first; work would be found for me in England till my turn
would come to go to the front.
I returned to Bramshott Camp a somewhat wiser man as to the
workings of things military. But as I sat in the cold first class
compartment, with my feet on a stone hot water-bottle (seemingly
this is the only way they heat the cars in England) my mind was busy
with many things. One was that I never should have offered my
services as chaplain had I foreseen the catastrophe which had
befallen us. I had counted on being with my men till the last. Before
leaving for overseas many of the mothers of the lads had come to
me and had told me what a great consolation it was to them to have
the assurance that a Catholic priest would be with their sons. Now I
was not going with them; still, I had been convinced that the lads
would be well cared for spiritually.
At Bramshott I became assistant for a time to the camp chaplain,
Father John Knox.
Chapter XVII
The Little Spaniard

I had not been given very much information at headquarters as to


how soon I might be sent to the front, for they did not know how soon
the call might come for chaplains.
In a few days the remnants of my battalion left Bramshott for a camp
at Shoreham-by-Sea—all save a few, who stayed as officers,
servants or clerks in different branches at headquarters.
One afternoon I was sitting before Father Knox’s tiny fire-place in his
little room, talking of the Sunday church parades, when a very young
soldier entered, saluted, passed Father Knox a letter and then stood
at attention. I did not notice the lad particularly, as Father Knox read
the letter in silence, for my eyes were on the small heap of glowing
coals in the grate before me, and my mind was busy on a scheme to
get all the men in the camp at two church parades on the following
Sunday.
As Father Knox began to write the answer, he looked up from the
paper and asked, “Catholic?”
Then for the first time the lad began to speak, hurriedly, and with
foreign accent. His eyes took on a queer strained expression; his
head seemed to crouch down to his shoulders.
It transpired that he was a Spaniard and had been brought up a
Catholic, but after going to Canada had been accustomed to go to
Protestant churches. He was now orderly to a Protestant minister
and had received a few books from him including a copy of the New
Testament in Spanish, so at present, his religion was the “Lord
Jesus.”
I had already turned from the fire and was watching the lad. It was
the first time I had ever heard a Catholic speak so, and I felt a great
pity for him. But quickly the pity gave place to other emotions, for in
reply to Father Knox’s question as to what battalion he came over
with, he said “One Hundred and Thirty-second”—my own battalion!
Slowly a dazed, nauseating feeling chilled me. Such a thing to
happen! I was responsible to God for this man’s soul; and apparently
he had lost his faith!
I questioned him a little, only to learn that now he was orderly to a
Baptist minister and that it was he who had given him the New
Testament in Spanish. I appointed an evening for the lad to come to
see me. He came and we talked for a long time, but he seemed to
be strangely obsessed. The more we talked, the more I noticed the
queer, strained expression in his eyes, and when he left me that
night I feared I had not done very much towards reviving his faith. It
was many months before I saw him again.
Chapter XVIII
The Garrison Church Hut

The days passed quickly. New battalions from home came and took
up quarters in camp, and to their surprise were broken up and sent
in drafts to France. Every night Father Knox or I remained on duty in
the little garrison hut, that the lads might have an opportunity of
going to confession before leaving for France.
The garrison church hut had been built by the military authorities for
the use of all religious denominations. It was used on Sundays by
the Catholics, or, as the Army Equivalent has it, R. C.’s, at seven
o’clock for the Communion Mass for the men. The Protestant
denominations had the use of it all the rest of the day. There was a
little altar on which the Anglicans offered their Communion service,
but we never used this. Father Knox had an altar of his own, on
rollers, which was moved out in front of the other one before Mass
and wheeled back after Mass.
Just outside the entrance to the hut had been erected a large
blackboard for announcements of services. Always on Saturday
night this board held the order of the Anglican services. We had
never interfered with this, as the Anglican is recognized as the
official religion of the British army. However, one Saturday evening
as I came out alone from the hut I happened, in passing, to glance at
the board. The customary announcements were not there; instead,
was written in bold white letters the order of Catholic services for the
morrow. Not only was the notice of the camp service given, but the
Benediction at Grayshott Convent was mentioned also. For a few
seconds I stood gazing at the sign, in great surprise. Soldiers
passing along the little lane paused to read and then passed on. I
knew Father Knox could have had nothing to do with it. Then, as I
stood there in the night looking at the announcement board, I smiled.
“Tim Healy,” I said, “Tim Healy!”
Tim Healy was a lieutenant who had come over from Canada with an
Irish battalion. Like many another it had been broken up and Tim
was waiting anxiously his turn at the front. He had been born in
Ireland and was a near relative of the great Tim Healy. The following
afternoon I saw him at the Convent of the Cenacle. I went across the
room to where he was sitting, and waited till he had finished his tea.
Then, without any preamble, I said: “Mr. Healy, why did you erase
the announcements on the board outside the church and put the
Catholic order on?”
Tim forced an expression of innocent wonder into his face, which, I
thought, was a little too elaborately done; but almost simultaneously
appeared a pleasant twinkle in the eyes of him.
“No, Father,” he said, “I didn’t,” then he smiled broadly and his eyes
twinkled merrily.
I looked at him in great surprise, for I was almost certain that he had
done it. But Tim had not finished, and as his eyes continued to
twinkle said quietly: “But I sent one of my men to do it. I hope he did
it well.”
“Oh, yes,” I said grimly, “I think it was done well—if not too well.”
However, nothing ever came of it.
Chapter XIX
The New Sacrifice

Things went much the same at Bramshott. Spring came, and for the
first time I saw the primroses, which are among the first flowers to
bloom in England. They do not belong to the aristocracy for one sees
them everywhere; along railway embankments, along the roadsides,
near the hedge-rows, everywhere patches of the pretty little yellow
flowers smiled the approach of spring.
Then one day when the spring birds, nesting in the great old English
trees, were cheering up the poor war-broken lads that lay on their
little cots in so many military hospitals throughout the country—Vimy
Ridge had been fought, and many of the lads who had sailed with
me had fallen that victory might come—word came that I was to join
the Fifth Canadian Division, which was then preparing to go
overseas.
It was a beautiful day when I left for Witley Camp where the Fifth
Division was quartered. The birds were chorusing their glorious
melodies from hedge and tree and field; but along lanes that should
have worn a peaceful country setting went clumsily great motor
lorries in different ways connected with the war.
Witley Camp was only six miles from Bramshott, so it did not take us
long to speed over the Portsmouth road through the beautiful Surrey
country.
I took up temporary quarters with my old friend Father Crochetiere,
and slept on a table in his office. I was not very long there when
another old friend dropped in to see me in the height of Father
Hingston, S. J. Both priests welcomed me very kindly and told me I
was just in time to help in the remote preparation for a stirring event.
They spoke with great enthusiasm, and it was not long before I was
made aware of the cause. A Solemn High Mass was to be
celebrated in the open air the following Sunday, and the Catholic
soldiers from all parts of the camp were to attend in order to be
consecrated to the Sacred Heart of Jesus. There were more than
three thousand Catholic soldiers in the camp. The following Sunday
morning I was up very early to help in the preparations.
It was a beautiful morning. The sun was up, clear, bright, and warm.
The air was very still. Though preparations, both military and
religious, had been most carefully made, there was discernible in the
manner of the priests who had worked so hard for the bringing about
of this great religious ceremony some signs of anxiety. They feared
lest there be a hitch in the deliverance of orders, so that all the men
might not be present. There was no need to fear, for at 9:30 o’clock
three thousand Catholic soldiers drew up in the grove of pines on the
border of the lake at the northwest corner of the camp and all anxiety
disappeared. There were French Canadian lads from the Province of
Quebec; Irish Canadian Rangers from Montreal; Scotch laddies, with
feathers in their caps, from Ontario and Nova Scotia; Indian lads
from Eastern and Western Canada.
An altar had been built against one of the very few oak trees that
stood in the grove of pines, and above the cross that stood upon it, a
large picture of the Sacred Heart of Jesus was nailed to the tree;
surmounting all was a canopy of larch and ivy leaves. Daffodils,
tulips and larch stood out brightly among the candles on the white
altar. All about the carpeted elevation on which the altar had been
built stood many potted plants.
As the parade was drawn up beneath the trees, on the carpet of dry
pine needles and the last year’s oak leaves, bands of different
battalions played and the kilted laddies made music with their pipes.
Father Crochetiere sang the Mass, with old Father McDonald, who
had come over as chaplain to a Scottish battalion, as deacon and
the writer as sub-deacon. The choir of thirty voices which sang the
Royal Mass so beautifully was under the direction of Lt. Prevost of
the One Hundred and Fiftieth Battalion.
And so under the British oak where “Druids of old” once offered their
pagan sacrifices, the Holy Sacrifice of the New Law was offered, and
Canadian lads knelt to adore. And there by the quiet lakeside the
miracle of God’s wonderful love was wrought, and the promise made
by the Divine Master on the border of another lake, the day following
the multiplication of the loaves and fishes, was fulfilled. For many of
the soldiers had waited till this late Mass to go to Communion, and
under the beautiful sunlight that filtered through the trees they knelt
to receive the “Bread of Life.”
After Mass a short sermon was preached in English and French by
Father Hingston, S. J., chaplain to the Irish Canadian Rangers, in the
course of which he explained clearly and beautifully what the
ceremony of consecration meant.
Then Colonel Barré, commanding the One Hundred and Fiftieth
Battalion, read the Act of Consecration to the Sacred Heart of Jesus
in French, and Major McRory, officer commanding the One Hundred
and Ninety-ninth Irish Canadian Rangers, read it in English. Each
soldier was then presented with a badge of the Sacred Heart.
And just as of old the multitude who followed the Divine Master were
blessed before they departed, so, after the Consecration to the
Sacred Heart had been made, the lads knelt while Benediction of the
Blessed Sacrament was given, and then all was over. “He blessed
them and sent them away.”
As I stood that day by the little altar near the lakeside, while bands
played and the lads fell in preparatory to departing, I could not help
thinking of the many different places where they had worshipped
since they had left Canada; and though I could not foresee the
strange scenes they would inevitably meet on the red road of war,
which they would shortly travel, still I felt sure that one day would
stand out in their memories in bold relief—the day they made the Act
of Consecration to the Sacred Heart of Jesus,—the day when they
knelt before God’s altar built in the open air under the trees by the
lakeside—and Jesus passed!
Chapter XX
Through English Lanes

The early summer in England, especially in Surrey, is very beautiful,


and as the work was light we had many opportunities to walk through
the lovely country roads. But even prettier than the highways were
the lanes that led off from them and went winding, with their hedges,
through copse and field, and quaint little red-brick villages, each with
its century-old, ivy-covered church that had come down from the
good old Catholic days. In some of them a statue of some saint still
stood, and in many were ancient holy-water stoops and baptismal
fonts.
Often gigantic chestnut or oak trees, grouped near a quaint old gate,
told us of the entrance to some baronial estate or castle; but nearly
always our only view of the estate was a piece of road with very
carefully trimmed box-hedge or a great blazing hedge-row of
rhododendrons, and a small white board, attached to a gate-post or
tree, which informed the passing wayfarer that there was “No
Thoroughfare.”
It was very pleasant to steal away from the camp and the sounds of
shouted orders, and practicing military bands and bugle notes, to the
quiet country where the birds sang blithely and the strange notes of
the cuckoo’s solitary call from some distant tarn or wood came
sweetly to the ears; one forgot, for the moment, the thought of war
and all associated with it.
I remember one afternoon I had taken a walk with Father Hingston
and Father Crochetiere down a shady lane that wound, for the most
part, through a high woodland, when we came suddenly to a small
village of seven or eight houses. To our right was a long box-hedged
foot-path, winding through a field or two till it was swallowed up in a
grove of tall, full-leafed beech and oak trees that stood presumably
before a rich country seat. But we did not take the foot-path to the
right. Instead, the priests,—both had been here before,—turned to
the left and presently we had passed through a little gate into a very
small but lovely rose garden. A tiny path, with a tiny boxwood hedge
not more than a foot high, led from the gate to the door of an old-
fashioned white house. Just before the door was built a latticed
portico, over which climbing roses grew. We were admitted by an
elderly housekeeper and were asked to go upstairs.
There we found a priest whose age might have been forty-five and
whose hair was just beginning to turn grey about the temples. He
was about medium height, rather slight, with an ascetic face. He was
sitting in a low room which was very bare save for a table on which
were some morning papers. Across the hall was a room in which
was a great old-fashioned fire-place with an ingle-nook. The priest’s
name was Father McCarty, but he spoke with a decidedly English
accent. He was a member of a religious community known as the
Salesian Fathers. Knowing that he had such a very small parish, I
asked him if he found the time heavy on his hands. He replied that
he did not; and that although he had only three or four families in all,
including the rich household of Capt. Rusbrook, whose large estate
we had passed on entering the village, he was quite busy, as he was
writing the life of the founder of his order, Don Bosco; he also from
time to time helped the chaplains at Witley Camp.
Chapter XXI
At Parkminster

There was a different spirit in Witley Camp than there had been at
Bramshott; for in the whole division—twelve battalions of infantry and
three brigades of artillery, etc.,—was the one feeling of expectation
of soon going overseas. Any day the orders might come.
Father Hingston had made a retreat in London, and Father
Crochetiere had just returned from five days’ rest and prayer at the
wonderful monastery of the Carthusian Fathers, at Parkminster. I
decided to go there.
The following Monday, late in the afternoon, I drove up the winding
drive, through hawthorn hedges, to the gates of the monastery.
Everything seemed very quiet; no one appeared in garden or
window. A bell-rope hung outside the blue-grey door. I pulled it
quickly. From somewhere within came a great clanging, and almost
simultaneously a clatter of heavy boots on stone flags. Inside, a bolt
shot back, and immediately a white-garbed, white-bearded old
brother stood before me, smiling in the opening. He shook hands
with me and bade me enter.
“We have been expecting you, Father,” he said, with that gentle
courtesy that one finds in a religious house. He took my grip,
notwithstanding every protest and led me along the rough, stone-
floored corridor to the Guest House, where I was given a large, airy
corner room, plainly though adequately furnished. Snow-white
sheets were on the bed—I had not seen sheets for a long time.
The old white brother told me to sit down,—that presently the Retreat
Master would come. Then he left me. I went over to a window and
looked out. Just below was a large garden with rose-fringed walks,
enclosed by a very high stone wall. Outside the wall green fields,
fringed with dark trees, stretched far away. Beyond these, rolling
Sussex downs, looking greyish-blue in the summer haze, rose to
meet the skyline.
A strange peace was everywhere, and save for a slight nervousness
that seemed to have come to me with the great silence of the house,
I was glad that I had come.
In a little while a knock sounded on the door and the Retreat Master
entered. He was not very tall, and rather slight, and though his hair
was grey he was not old. There was nothing very distinctive in his
face, now rough with a three-days’ growth of beard—the rule of the
order is to shave every fifteen days—and there was not much color
in his cheeks. The eyes were small, grey and almost piercing. But
there was that same indefinable atmosphere of peace about him. It
seemed as if he had stepped aside from the great noisy highway of
the world to listen in silence to the voice of God. Yet, as he talked,
the Father seemed to take a childish interest in all that I told him of
my experiences in a great military camp with officers and men of the
world. But away below the wonder that rippled over the surface of
the spirit of the monk there seemed to be great depths of silence,
and as I tried to fathom these depths, I felt a strange helplessness
come over me. I could not understand this man who sat smiling
simply and cordially, and at the same time seemed to be enveloped
in an atmosphere not of this world.
Before he left for the evening the Retreat Master pointed to a card
that hung on the wall. “The Order of Retreat,” he said. “You will be
able to follow it?”
I assured the Father that I would, and then he was gone for the
night.
My retreat passed very quickly—I had only five days—and during
that time I forgot all about war and preparations for war. Every day
for about half an hour the Retreat Master came to my room and
talked a little. He told me many things about the monastic life that I
found very interesting. Each monk, he explained, lived in a little brick
two-story house which was attached to the great main corridor that
formed a quadrangle about the church. The lower story was a kind of
workshop in which was a lathe and different kinds of carpenters’
tools, and to it the monk descended in his free time to do manual
work. A small garden, in between the different houses, was allotted
to each monk, where he worked for a while each day and grew
vegetables for his own frugal board.
One day I told the Retreat Master that I had read a description of
Parkminster in one of the late Monsignor Benson’s novels, “The
Conventionalists.”
The monk smiled reminiscently. He recalled the day that Mr. Benson
—he was an Anglican at the time of his visit—in company with
another minister, had called. Mr. Benson had seemed very much
interested. The other had made some strange remark. Monsignor
Benson had never visited the Monastery as a priest, nor had he ever
brought any one there to join the community. The monk assured me
of this, and he had been Guest Master for many years. Yet when I
had read “The Conventionalists” I had been almost convinced that
the story related was a personal experience. It may have been to
some other monastery that the young man had gone, although
Monsignor Benson had said Parkminster.
Shortly before I left the monastery the Retreat Master came to have
a last chat. “When you reach the front,” he said, “tell your men that
we are praying for them day after day, night after night.”
I felt a strange feeling of security on hearing these words, but as I left
the monastery gates and turned to say farewell to the old monk, I felt
a distinct sinking of my heart. “Perhaps,” he said rapturously, “you’ll
be a martyr!”
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