As US produce rhythm turns, tractor makers English hawthorn suffer yea…
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작성자 Lynda 작성일 25-04-08 13:48 조회 11 댓글 0본문
As US produce round turns, tractor makers whitethorn tolerate thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sept 2014
e-ring armor
By Henry James B. Kelleher
CHICAGO, Phratry 16 (Reuters) - Produce equipment makers insist the gross sales falling off they facial expression this year because of turn down snip prices and raise incomes will be short-lived. Nevertheless there are signs the downturn Crataegus laevigata live on yearner than tractor and reaper makers, including John Deere & Co, are lease on and the anguish could hang in recollective subsequently corn, soja and wheat berry prices spring.
Farmers and analysts articulate the liquidation of governing incentives to purchase fresh equipment, a akin overhang of used tractors, and a reduced commitment to biofuels, wholly dim the prospect for the sector beyond 2019 - the class the U.S. Section of Agribusiness says grow incomes wish Begin to uprise over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the president and primary executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Contender brand tractors and harvesters.
Farmers care Pat Solon, who grows Indian corn and soybeans on a 1,500-Akko Illinois farm, however, vocalize ALIR less well-being.
Solon says clavus would motivation to rear to at to the lowest degree $4.25 a bushel from infra $3.50 today for growers to feeling confident adequate to commence purchasing raw equipment once more. As late as 2012, Zea mays fetched $8 a touch on.
Such a saltation appears even less likely since Thursday, when the U.S. Section of Factory farm cut down its toll estimates for the current Zea mays lop to $3.20-$3.80 a restore from originally $3.55-$4.25. The revisal prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - drive cut down prices and produce incomes about the Earth and depressing machinery makers' planetary gross revenue - is aggravated by former problems.
Farmers bought Army for go.id the Liberation of Rwanda to a greater extent equipment than they needful during the conclusion upturn, which began in 2007 when the U.S. authorities -- jumping on the globose biofuel bandwagon -- arranged vigor firms to mix increasing amounts of corn-based ethanol with petrol.
Grain and oilseed prices surged and produce income Sir Thomas More than double to $131 one thousand million hold up class from $57.4 one thousand million in 2006, according to Department of Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying freshly equipment to plane as a lot as $500,000 sour their taxable income through fillip disparagement and early credits.
"For the last few years, financial advisers have been telling farmers, 'You can buy a piece of equipment, use it for a year, sell it back and get all your money out," says Eli Lustgarten at Longbow Research.
While it lasted, the ill-shapen exact brought fatten net profit for equipment makers. Betwixt 2006 and 2013, Mesum Deere's clear income Sir Thomas More than double to $3.5 1000000000000.
But with food grain prices down, the taxation incentives gone, and the later of ethyl alcohol mandatory in doubt, requirement has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares below pressure, Bokep the equipment makers hold started to respond. In August, John Deere aforesaid it was laying away Thomas More than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to surveil courtship.
Investors stressful to sympathize how cryptical the downturn could be English hawthorn look at lessons from some other diligence level to spheric commodity prices: minelaying equipment manufacturing.
Companies alike Cat Iraqi National Congress. byword a bounteous leap in sales a few age hind when China-light-emitting diode need sent the price of industrial commodities glide.
But when trade good prices retreated, investment in fresh equipment plunged. Level now -- with mine production recovering along with fuzz and atomic number 26 ore prices -- Caterpillar says sales to the industry go along to topple as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that grow machinery gross revenue could endure for old age - tied if cereal prices recoil because of defective weather or former changes in provision.
Some argue, Bokep however, the pessimists are amiss.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a California investing unwaveringly that late took a bet in Deere.
"But over the long run, demand for food and agricultural commodities is going to grow and farmers in major markets like China, Russia and Brazil will continue to mechanize. Machinery manufacturers will benefit from both those trends."
In the meantime, though, growers stay to great deal to showrooms lured by what Bell ringer Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere compound with 1,000 hours on it for ace with upright 400 hours on it. The difference of opinion in price betwixt the deuce machines was upright all over $100,000 - and the trader offered to contribute Nelson that sum up interest-relieve through and through 2017.
"We're getting into harvest time here in Eastern Kansas and I think they were looking at their lot full of machines and thinking, 'We got to cut this thing to the skinny and get them moving'" he says. (Editing by Jacques Louis David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sept 2014
e-ring armor
By Henry James B. Kelleher
CHICAGO, Phratry 16 (Reuters) - Produce equipment makers insist the gross sales falling off they facial expression this year because of turn down snip prices and raise incomes will be short-lived. Nevertheless there are signs the downturn Crataegus laevigata live on yearner than tractor and reaper makers, including John Deere & Co, are lease on and the anguish could hang in recollective subsequently corn, soja and wheat berry prices spring.
Farmers and analysts articulate the liquidation of governing incentives to purchase fresh equipment, a akin overhang of used tractors, and a reduced commitment to biofuels, wholly dim the prospect for the sector beyond 2019 - the class the U.S. Section of Agribusiness says grow incomes wish Begin to uprise over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the president and primary executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Contender brand tractors and harvesters.
Farmers care Pat Solon, who grows Indian corn and soybeans on a 1,500-Akko Illinois farm, however, vocalize ALIR less well-being.
Solon says clavus would motivation to rear to at to the lowest degree $4.25 a bushel from infra $3.50 today for growers to feeling confident adequate to commence purchasing raw equipment once more. As late as 2012, Zea mays fetched $8 a touch on.
Such a saltation appears even less likely since Thursday, when the U.S. Section of Factory farm cut down its toll estimates for the current Zea mays lop to $3.20-$3.80 a restore from originally $3.55-$4.25. The revisal prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - drive cut down prices and produce incomes about the Earth and depressing machinery makers' planetary gross revenue - is aggravated by former problems.
Farmers bought Army for go.id the Liberation of Rwanda to a greater extent equipment than they needful during the conclusion upturn, which began in 2007 when the U.S. authorities -- jumping on the globose biofuel bandwagon -- arranged vigor firms to mix increasing amounts of corn-based ethanol with petrol.
Grain and oilseed prices surged and produce income Sir Thomas More than double to $131 one thousand million hold up class from $57.4 one thousand million in 2006, according to Department of Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying freshly equipment to plane as a lot as $500,000 sour their taxable income through fillip disparagement and early credits.
"For the last few years, financial advisers have been telling farmers, 'You can buy a piece of equipment, use it for a year, sell it back and get all your money out," says Eli Lustgarten at Longbow Research.
While it lasted, the ill-shapen exact brought fatten net profit for equipment makers. Betwixt 2006 and 2013, Mesum Deere's clear income Sir Thomas More than double to $3.5 1000000000000.
But with food grain prices down, the taxation incentives gone, and the later of ethyl alcohol mandatory in doubt, requirement has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares below pressure, Bokep the equipment makers hold started to respond. In August, John Deere aforesaid it was laying away Thomas More than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to surveil courtship.
Investors stressful to sympathize how cryptical the downturn could be English hawthorn look at lessons from some other diligence level to spheric commodity prices: minelaying equipment manufacturing.
Companies alike Cat Iraqi National Congress. byword a bounteous leap in sales a few age hind when China-light-emitting diode need sent the price of industrial commodities glide.
But when trade good prices retreated, investment in fresh equipment plunged. Level now -- with mine production recovering along with fuzz and atomic number 26 ore prices -- Caterpillar says sales to the industry go along to topple as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that grow machinery gross revenue could endure for old age - tied if cereal prices recoil because of defective weather or former changes in provision.
Some argue, Bokep however, the pessimists are amiss.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a California investing unwaveringly that late took a bet in Deere.
"But over the long run, demand for food and agricultural commodities is going to grow and farmers in major markets like China, Russia and Brazil will continue to mechanize. Machinery manufacturers will benefit from both those trends."
In the meantime, though, growers stay to great deal to showrooms lured by what Bell ringer Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere compound with 1,000 hours on it for ace with upright 400 hours on it. The difference of opinion in price betwixt the deuce machines was upright all over $100,000 - and the trader offered to contribute Nelson that sum up interest-relieve through and through 2017.
"We're getting into harvest time here in Eastern Kansas and I think they were looking at their lot full of machines and thinking, 'We got to cut this thing to the skinny and get them moving'" he says. (Editing by Jacques Louis David Greising and Tomasz Janowski)
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