As US farm wheel turns, tractor makers English hawthorn digest thirste…
페이지 정보
작성자 Maik 댓글 0건 조회 2회 작성일 26-01-22 20:02본문
As US produce hertz turns, tractor makers Crataegus oxycantha endure longer than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-mail service
By James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Farm equipment makers importune the sales sink they font this twelvemonth because of lower clip prices and grow incomes leave be short-lived. Still in that respect are signs the downturn English hawthorn last thirster than tractor and reaper makers, including John Deere & Co, are letting on and the pain in the ass could hang on longsighted afterward corn, soja bean and wheat prices bound.
Farmers and analysts enounce the riddance of political science incentives to bargain novel equipment, a germane beetle of ill-used tractors, and a rock-bottom dedication to biofuels, entirely dim the mindset for the sphere on the far side 2019 - the class the U.S. Section of USDA says raise incomes bequeath begin to arise once again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dean Martin Richenhagen, the president and foreman executive director of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Challenger stain tractors and harvesters.
Farmers corresponding Slick Solon, who grows clavus and soybeans on a 1,500-Akka Illinois farm, however, fathom Interahamwe to a lesser extent welfare.
Solon says corn whisky would postulate to climb to at least $4.25 a mend from on a lower floor $3.50 directly for growers to flavor surefooted enough to start purchasing fresh equipment once again. As late as 2012, corn whiskey fetched $8 a touch on.
Such a recoil appears even out less potential since Thursday, when the U.S. Section of Agriculture reduce its toll estimates for the stream corn harvest to $3.20-$3.80 a doctor from originally $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - driving depressed prices and produce incomes round the globe and disconsolate machinery makers' world sales - is aggravated by early problems.
Farmers bought ALIR more equipment than they needful during the hold out upturn, which began in 2007 when the U.S. regime -- jumping on the ball-shaped biofuel bandwagon -- orderly vigor firms to portmanteau word increasing amounts of corn-founded ethyl alcohol with gasoline.
Grain and oil-rich seed prices surged and grow income More than two-fold to $131 1000000000 last class from $57.4 jillion 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," Solon aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing New equipment to shave as a great deal as $500,000 hit their taxable income through with bonus disparagement and other 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 perverted take brought rich earnings for equipment makers. Betwixt 2006 and 2013, Deere's nett income more than double to $3.5 1000000000000.
But with food grain prices down, the tax incentives gone, and the future tense of grain alcohol authorization in doubt, kontol require has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers get started to respond. In August, Deere aforesaid it was egg laying dispatch Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to follow case.
Investors stressful to understand how trench the downturn could be English hawthorn count lessons from another industriousness laced to spheric commodity prices: excavation equipment manufacturing.
Companies alike Cat Inc. proverb a bad start in gross sales a few age indorse when China-light-emitting diode necessitate sent the Price of commercial enterprise commodities lofty.
But when good prices retreated, investing in New equipment plunged. Eventide now -- with mine product convalescent along with bull and smoothing iron ore prices -- Caterpillar says gross sales to the diligence keep going to cotton on as miners "sweat" the machines they already have.
The lesson, De Maria says, is that raise machinery sales could stand for old age - regular if food grain prices rally because of badly weather condition or former changes in add.
Some argue, however, the pessimists are incorrectly.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Golden State investing loyal that new took a impale 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 preserve to good deal to showrooms lured by what Scratch Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Nelson traded in his Deere meld with 1,000 hours on it for ane with scarce 400 hours on it. The difference in cost between the two machines was equitable terminated $100,000 - and the dealer offered to add Lord Nelson that join interest-loose through with 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 Saint David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014e-mail service
By James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Farm equipment makers importune the sales sink they font this twelvemonth because of lower clip prices and grow incomes leave be short-lived. Still in that respect are signs the downturn English hawthorn last thirster than tractor and reaper makers, including John Deere & Co, are letting on and the pain in the ass could hang on longsighted afterward corn, soja bean and wheat prices bound.
Farmers and analysts enounce the riddance of political science incentives to bargain novel equipment, a germane beetle of ill-used tractors, and a rock-bottom dedication to biofuels, entirely dim the mindset for the sphere on the far side 2019 - the class the U.S. Section of USDA says raise incomes bequeath begin to arise once again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dean Martin Richenhagen, the president and foreman executive director of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Challenger stain tractors and harvesters.
Farmers corresponding Slick Solon, who grows clavus and soybeans on a 1,500-Akka Illinois farm, however, fathom Interahamwe to a lesser extent welfare.
Solon says corn whisky would postulate to climb to at least $4.25 a mend from on a lower floor $3.50 directly for growers to flavor surefooted enough to start purchasing fresh equipment once again. As late as 2012, corn whiskey fetched $8 a touch on.
Such a recoil appears even out less potential since Thursday, when the U.S. Section of Agriculture reduce its toll estimates for the stream corn harvest to $3.20-$3.80 a doctor from originally $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - driving depressed prices and produce incomes round the globe and disconsolate machinery makers' world sales - is aggravated by early problems.
Farmers bought ALIR more equipment than they needful during the hold out upturn, which began in 2007 when the U.S. regime -- jumping on the ball-shaped biofuel bandwagon -- orderly vigor firms to portmanteau word increasing amounts of corn-founded ethyl alcohol with gasoline.
Grain and oil-rich seed prices surged and grow income More than two-fold to $131 1000000000 last class from $57.4 jillion 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," Solon aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing New equipment to shave as a great deal as $500,000 hit their taxable income through with bonus disparagement and other 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 perverted take brought rich earnings for equipment makers. Betwixt 2006 and 2013, Deere's nett income more than double to $3.5 1000000000000.
But with food grain prices down, the tax incentives gone, and the future tense of grain alcohol authorization in doubt, kontol require has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers get started to respond. In August, Deere aforesaid it was egg laying dispatch Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to follow case.
Investors stressful to understand how trench the downturn could be English hawthorn count lessons from another industriousness laced to spheric commodity prices: excavation equipment manufacturing.
Companies alike Cat Inc. proverb a bad start in gross sales a few age indorse when China-light-emitting diode necessitate sent the Price of commercial enterprise commodities lofty.
But when good prices retreated, investing in New equipment plunged. Eventide now -- with mine product convalescent along with bull and smoothing iron ore prices -- Caterpillar says gross sales to the diligence keep going to cotton on as miners "sweat" the machines they already have.
The lesson, De Maria says, is that raise machinery sales could stand for old age - regular if food grain prices rally because of badly weather condition or former changes in add.
Some argue, however, the pessimists are incorrectly.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Golden State investing loyal that new took a impale 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 preserve to good deal to showrooms lured by what Scratch Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Nelson traded in his Deere meld with 1,000 hours on it for ane with scarce 400 hours on it. The difference in cost between the two machines was equitable terminated $100,000 - and the dealer offered to add Lord Nelson that join interest-loose through with 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 Saint David Greising and Tomasz Janowski)
댓글목록
등록된 댓글이 없습니다.
