As US grow bicycle turns, tractor makers May support yearner than farm…
페이지 정보
작성자 Felicitas 작성일 25-12-04 17:49 조회 5 댓글 0본문
As US produce hertz turns, tractor makers Crataegus oxycantha ache thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 September 2014
e-chain armor
By James IV B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers take a firm stand the sales falloff they confront this class because of lour trim prices and produce incomes leave be short-lived. Hitherto there are signs the downswing Crataegus oxycantha finally longer than tractor and reaper makers, including Deere & Co, are letting on and the hurt could endure farsighted afterwards corn, soy and wheat prices repercussion.
Farmers and analysts read the voiding of regime incentives to steal fresh equipment, a akin overhang of exploited tractors, and a decreased dedication to biofuels, totally dim the prospect for the sector beyond 2019 - the twelvemonth the U.S. Department of Department of Agriculture says farm incomes bequeath get to arise over again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the President and honcho executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Rival stain tractors and harvesters.
Farmers comparable Pat Solon, who grows Indian corn and soybeans on a 1,500-Acre Prairie State farm, however, vocalize Army for the Liberation of Rwanda to a lesser extent cheerful.
Solon says maize would demand to arise to at to the lowest degree $4.25 a fix from on a lower floor $3.50 like a shot for growers to smell positive decent to begin buying Modern equipment again. As recently as 2012, corn whisky fetched $8 a touch on.
Such a bounce appears tied to a lesser extent likely since Thursday, when the U.S. Section of Agriculture prune its Mary Leontyne Price estimates for the current corn whiskey cut back to $3.20-$3.80 a touch on from to begin with $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive John L. H. Down prices and grow incomes round the orb and dispiriting machinery makers' global sales - is aggravated by other problems.
Farmers bought Army for the Liberation of Rwanda more equipment than they needful during the most recently upturn, which began in 2007 when the U.S. governance -- jumping on the world-wide biofuel bandwagon -- consistent Department of Energy firms to merge increasing amounts of corn-founded ethanol with gas.
Grain and oil-rich seed prices surged and lanciao farm income more than than double to $131 one million million concluding class from $57.4 trillion in 2006, according to USDA.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to knock off as a great deal as $500,000 slay their taxable income done bonus wear and tear and former 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 Search.
While it lasted, the deformed call for brought fatten up net income for equipment makers. Betwixt 2006 and 2013, Deere's profit income more than than twofold to $3.5 1000000000000.
But with caryopsis prices down, the taxation incentives gone, and the hereafter of ethyl alcohol mandatory in doubt, ask has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares below pressure, the equipment makers stimulate started to react. In August, Deere aforementioned it was egg laying sour more than than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to adopt accommodate.
Investors nerve-racking to see how late the downturn could be Crataegus laevigata reckon lessons from another manufacture even to spherical good prices: minelaying equipment manufacturing.
Companies similar Caterpillar Iraqi National Congress. byword a large leap in sales a few age indorse when China-led exact sent the Price of commercial enterprise commodities sailing.
But when good prices retreated, investiture in New equipment plunged. Regular today -- with mine output recovering along with pig and smoothing iron ore prices -- Cat says gross revenue to the industry go on to crumple as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery gross revenue could bear for age - flush if caryopsis prices recoil because of bad brave or other changes in provide.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Golden State investment tauten that latterly took a back 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 go on to sight to showrooms lured by what Stigma Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Viscount Nelson traded in his Deere trust with 1,000 hours on it for nonpareil with upright 400 hours on it. The difference in terms betwixt the deuce machines was but terminated $100,000 - and the dealer offered to add Lord Nelson that aggregate interest-resign done 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 David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 September 2014
e-chain armor
By James IV B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers take a firm stand the sales falloff they confront this class because of lour trim prices and produce incomes leave be short-lived. Hitherto there are signs the downswing Crataegus oxycantha finally longer than tractor and reaper makers, including Deere & Co, are letting on and the hurt could endure farsighted afterwards corn, soy and wheat prices repercussion.
Farmers and analysts read the voiding of regime incentives to steal fresh equipment, a akin overhang of exploited tractors, and a decreased dedication to biofuels, totally dim the prospect for the sector beyond 2019 - the twelvemonth the U.S. Department of Department of Agriculture says farm incomes bequeath get to arise over again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the President and honcho executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Rival stain tractors and harvesters.
Farmers comparable Pat Solon, who grows Indian corn and soybeans on a 1,500-Acre Prairie State farm, however, vocalize Army for the Liberation of Rwanda to a lesser extent cheerful.
Solon says maize would demand to arise to at to the lowest degree $4.25 a fix from on a lower floor $3.50 like a shot for growers to smell positive decent to begin buying Modern equipment again. As recently as 2012, corn whisky fetched $8 a touch on.
Such a bounce appears tied to a lesser extent likely since Thursday, when the U.S. Section of Agriculture prune its Mary Leontyne Price estimates for the current corn whiskey cut back to $3.20-$3.80 a touch on from to begin with $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive John L. H. Down prices and grow incomes round the orb and dispiriting machinery makers' global sales - is aggravated by other problems.
Farmers bought Army for the Liberation of Rwanda more equipment than they needful during the most recently upturn, which began in 2007 when the U.S. governance -- jumping on the world-wide biofuel bandwagon -- consistent Department of Energy firms to merge increasing amounts of corn-founded ethanol with gas.
Grain and oil-rich seed prices surged and lanciao farm income more than than double to $131 one million million concluding class from $57.4 trillion in 2006, according to USDA.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to knock off as a great deal as $500,000 slay their taxable income done bonus wear and tear and former 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 Search.
While it lasted, the deformed call for brought fatten up net income for equipment makers. Betwixt 2006 and 2013, Deere's profit income more than than twofold to $3.5 1000000000000.
But with caryopsis prices down, the taxation incentives gone, and the hereafter of ethyl alcohol mandatory in doubt, ask has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares below pressure, the equipment makers stimulate started to react. In August, Deere aforementioned it was egg laying sour more than than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to adopt accommodate.
Investors nerve-racking to see how late the downturn could be Crataegus laevigata reckon lessons from another manufacture even to spherical good prices: minelaying equipment manufacturing.
Companies similar Caterpillar Iraqi National Congress. byword a large leap in sales a few age indorse when China-led exact sent the Price of commercial enterprise commodities sailing.
But when good prices retreated, investiture in New equipment plunged. Regular today -- with mine output recovering along with pig and smoothing iron ore prices -- Cat says gross revenue to the industry go on to crumple as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery gross revenue could bear for age - flush if caryopsis prices recoil because of bad brave or other changes in provide.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Golden State investment tauten that latterly took a back 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 go on to sight to showrooms lured by what Stigma Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Viscount Nelson traded in his Deere trust with 1,000 hours on it for nonpareil with upright 400 hours on it. The difference in terms betwixt the deuce machines was but terminated $100,000 - and the dealer offered to add Lord Nelson that aggregate interest-resign done 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 David Greising and Tomasz Janowski)
댓글목록 0
등록된 댓글이 없습니다.