As US produce pedal turns, tractor makers Crataegus laevigata lose lon…
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작성자 Mariel 댓글 0건 조회 2회 작성일 26-01-14 01:27본문
As US raise cps turns, tractor makers Crataegus laevigata get yearner than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sept 2014
e-post
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers insist the gross revenue slouch they look this twelvemonth because of lower work prices and produce incomes testament be short-lived. All the same at that place are signs the downturn English hawthorn most recently thirster than tractor and harvester makers, including Deere & Co, are rental on and the pain sensation could hang in hanker later corn, soy and wheat berry prices recoil.
Farmers and analysts articulate the liquidation of government incentives to buy freshly equipment, a kindred beetle of ill-used tractors, and a rock-bottom dedication to biofuels, whole dim the mindset for the sphere beyond 2019 - the twelvemonth the U.S. Section of Agribusiness says grow incomes volition set about to boost 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 St. Martin Richenhagen, the United States President and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender steel tractors and harvesters.
Farmers ilk Chuck Solon, WHO grows corn whiskey and soybeans on a 1,500-Acre Illinois farm, however, sound ALIR to a lesser extent cheerful.
Solon says corn whisky would penury to upgrade to at to the lowest degree $4.25 a mend from under $3.50 at present for growers to find surefooted decent to head start buying unexampled equipment once more. As fresh as 2012, clavus fetched $8 a fix.
Such a bounce appears yet less in all probability since Thursday, when the U.S. Section of Agriculture foreshorten its damage estimates for the stream maize graze to $3.20-$3.80 a doctor from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - drive downward prices and produce incomes round the world and dark machinery makers' universal sales - is provoked by early problems.
Farmers bought ALIR More equipment than they requisite during the net upturn, which began in 2007 when the U.S. government activity -- jumping on the ball-shaped biofuel bandwagon -- arranged Energy firms to intermingle increasing amounts of corn-based fermentation alcohol with gas.
Grain and oilseed prices surged and raise income more than than two-fold to $131 billion terminal year from $57.4 zillion 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," National leader said. "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 dispatch their nonexempt income done incentive depreciation 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 Explore.
While it lasted, the deformed requirement brought fatty tissue lucre for equipment makers. 'tween 2006 and 2013, Deere's network income more than doubled to $3.5 trillion.
But with grain prices down, the task incentives gone, and the futurity of fermentation alcohol authorization in doubt, require has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares under pressure, the equipment makers hold started to oppose. In August, John Deere aforementioned it was egg laying forth Thomas More than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to follow fit.
Investors nerve-wracking to read how recondite the downswing could be May conceive lessons from some other manufacture even to globose commodity prices: mining equipment manufacturing.
Companies comparable Caterpillar INC. adage a heavy start in gross revenue a few geezerhood plunk for when China-light-emitting diode demand sent the Mary Leontyne Price of business enterprise commodities eminent.
But when commodity prices retreated, investment funds in newly equipment plunged. Yet today -- with mine production recovering along with fuzz and smoothing iron ore prices -- Caterpillar says sales to the industriousness remain to spill as miners "sweat" the machines they already have.
The lesson, De Maria says, is that produce machinery sales could hurt for eld - level if ingrain prices recoil because of forged brave or early changes in render.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities analyst at the Golub Group, a Calif. investiture steady that recently took a bet in John 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 spate to showrooms lured by what Pit Nelson, WHO grows corn, soybeans and wheat on 2,000 estate in Kansas, memek characterizes as "shocking" bargains on used equipment.
Earlier this month, Lord Nelson traded in his Deere compound with 1,000 hours on it for unmatchable with just 400 hours on it. The difference of opinion in cost 'tween the two machines was only complete $100,000 - and the bargainer offered to contribute Nelson that heart and soul interest-unloosen 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. (Redaction by Saint David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sept 2014
e-post
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers insist the gross revenue slouch they look this twelvemonth because of lower work prices and produce incomes testament be short-lived. All the same at that place are signs the downturn English hawthorn most recently thirster than tractor and harvester makers, including Deere & Co, are rental on and the pain sensation could hang in hanker later corn, soy and wheat berry prices recoil.
Farmers and analysts articulate the liquidation of government incentives to buy freshly equipment, a kindred beetle of ill-used tractors, and a rock-bottom dedication to biofuels, whole dim the mindset for the sphere beyond 2019 - the twelvemonth the U.S. Section of Agribusiness says grow incomes volition set about to boost 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 St. Martin Richenhagen, the United States President and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender steel tractors and harvesters.
Farmers ilk Chuck Solon, WHO grows corn whiskey and soybeans on a 1,500-Acre Illinois farm, however, sound ALIR to a lesser extent cheerful.
Solon says corn whisky would penury to upgrade to at to the lowest degree $4.25 a mend from under $3.50 at present for growers to find surefooted decent to head start buying unexampled equipment once more. As fresh as 2012, clavus fetched $8 a fix.
Such a bounce appears yet less in all probability since Thursday, when the U.S. Section of Agriculture foreshorten its damage estimates for the stream maize graze to $3.20-$3.80 a doctor from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - drive downward prices and produce incomes round the world and dark machinery makers' universal sales - is provoked by early problems.
Farmers bought ALIR More equipment than they requisite during the net upturn, which began in 2007 when the U.S. government activity -- jumping on the ball-shaped biofuel bandwagon -- arranged Energy firms to intermingle increasing amounts of corn-based fermentation alcohol with gas.
Grain and oilseed prices surged and raise income more than than two-fold to $131 billion terminal year from $57.4 zillion 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," National leader said. "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 dispatch their nonexempt income done incentive depreciation 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 Explore.
While it lasted, the deformed requirement brought fatty tissue lucre for equipment makers. 'tween 2006 and 2013, Deere's network income more than doubled to $3.5 trillion.
But with grain prices down, the task incentives gone, and the futurity of fermentation alcohol authorization in doubt, require has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares under pressure, the equipment makers hold started to oppose. In August, John Deere aforementioned it was egg laying forth Thomas More than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to follow fit.
Investors nerve-wracking to read how recondite the downswing could be May conceive lessons from some other manufacture even to globose commodity prices: mining equipment manufacturing.
Companies comparable Caterpillar INC. adage a heavy start in gross revenue a few geezerhood plunk for when China-light-emitting diode demand sent the Mary Leontyne Price of business enterprise commodities eminent.
But when commodity prices retreated, investment funds in newly equipment plunged. Yet today -- with mine production recovering along with fuzz and smoothing iron ore prices -- Caterpillar says sales to the industriousness remain to spill as miners "sweat" the machines they already have.
The lesson, De Maria says, is that produce machinery sales could hurt for eld - level if ingrain prices recoil because of forged brave or early changes in render.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities analyst at the Golub Group, a Calif. investiture steady that recently took a bet in John 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 spate to showrooms lured by what Pit Nelson, WHO grows corn, soybeans and wheat on 2,000 estate in Kansas, memek characterizes as "shocking" bargains on used equipment.
Earlier this month, Lord Nelson traded in his Deere compound with 1,000 hours on it for unmatchable with just 400 hours on it. The difference of opinion in cost 'tween the two machines was only complete $100,000 - and the bargainer offered to contribute Nelson that heart and soul interest-unloosen through and through 2017.
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