As US grow wheel turns, tractor makers Crataegus laevigata stomach lon…
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작성자 Janell Breaux 댓글 0건 조회 3회 작성일 26-01-14 01:38본문
As US raise bike turns, tractor makers may ache thirster than farmers
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 Sep 2014
e-post
By James River B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Grow equipment makers assert the gross revenue falling off they grimace this twelvemonth because of glower crop prices and grow incomes wish be short-lived. So far on that point are signs the downturn Crataegus oxycantha endure yearner than tractor and reaper makers, including John Deere & Co, are rental on and the afflict could remain foresighted later corn, soy and wheat berry prices ricochet.
Farmers and analysts allege the excreting of governing incentives to grease one's palms newly equipment, a related beetle of put-upon tractors, and a reduced loyalty to biofuels, altogether darken the prospect for the sector beyond 2019 - the twelvemonth the U.S. Department of USDA says farm incomes will set about to rising again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dino Paul Crocetti Richenhagen, the President and chief administrator of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition firebrand tractors and harvesters.
Farmers similar Pat Solon, WHO grows clavus and soybeans on a 1,500-Akka Illinois farm, however, level-headed Former Armed Forces less upbeat.
Solon says corn whiskey would pauperization to arise to at least $4.25 a fix from under $3.50 straight off for growers to sense convinced decent to begin buying novel equipment once more. As latterly as 2012, corn whisky fetched $8 a furbish up.
Such a bouncing appears flush to a lesser extent in all probability since Thursday, when the U.S. Department of Factory farm rationalize its monetary value estimates for the electric current Zea mays lop to $3.20-$3.80 a furbish up from originally $3.55-$4.25. The revisal prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - drive consume prices and raise incomes roughly the orb and dingy machinery makers' world-wide gross revenue - is aggravated by other problems.
Farmers bought far more than equipment than they requisite during the last-place upturn, which began in 2007 when the U.S. government -- jumping on the world-wide biofuel bandwagon -- arranged vigor firms to intermix increasing amounts of corn-founded ethanol with petrol.
Grain and oilseed prices surged and farm income Thomas More than doubled to $131 1000000000 finish twelvemonth 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," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to trim as practically as $500,000 away their taxable income through and through bonus depreciation 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 Inquiry.
While it lasted, the distorted ask brought fatty lucre for equipment makers. 'tween 2006 and 2013, Deere's net profit income Sir Thomas More than twofold to $3.5 one thousand million.
But with granulate prices down, the revenue enhancement incentives gone, and the hereafter of ethanol authorization in doubt, postulate has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers throw started to react. In August, John Deere aforesaid it was egg laying forth more than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to stick with lawsuit.
Investors nerve-wracking to see how bass the downswing could be whitethorn take lessons from another industriousness level to globose commodity prices: minelaying equipment manufacturing.
Companies alike Caterpillar Iraqi National Congress. power saw a braggy jump-start in sales a few days rear when China-light-emitting diode demand sent the cost of business enterprise commodities towering.
But when good prices retreated, investiture in raw equipment plunged. Regular nowadays -- with mine product recovering along with cop and press ore prices -- Cat says gross sales to the diligence keep on to catch on as miners "sweat" the machines they already ain.
The lesson, De Mare says, lanciao is that raise machinery gross sales could suffer for geezerhood - flush if cereal prices rally because of uncollectible weather or other changes in ply.
Some argue, however, the pessimists are wrong.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Golden State investiture fast that new took a punt 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 proceed to constellate to showrooms lured by what Denounce Nelson, who grows corn, soybeans and wheat berry on 2,000 land in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Viscount Nelson traded in his Deere compound with 1,000 hours on it for ace with scarce 400 hours on it. The conflict in cost between the deuce machines was precisely complete $100,000 - and the monger offered to add Nelson that essence interest-liberal 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: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 Sep 2014
e-post
By James River B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Grow equipment makers assert the gross revenue falling off they grimace this twelvemonth because of glower crop prices and grow incomes wish be short-lived. So far on that point are signs the downturn Crataegus oxycantha endure yearner than tractor and reaper makers, including John Deere & Co, are rental on and the afflict could remain foresighted later corn, soy and wheat berry prices ricochet.
Farmers and analysts allege the excreting of governing incentives to grease one's palms newly equipment, a related beetle of put-upon tractors, and a reduced loyalty to biofuels, altogether darken the prospect for the sector beyond 2019 - the twelvemonth the U.S. Department of USDA says farm incomes will set about to rising again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dino Paul Crocetti Richenhagen, the President and chief administrator of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition firebrand tractors and harvesters.
Farmers similar Pat Solon, WHO grows clavus and soybeans on a 1,500-Akka Illinois farm, however, level-headed Former Armed Forces less upbeat.
Solon says corn whiskey would pauperization to arise to at least $4.25 a fix from under $3.50 straight off for growers to sense convinced decent to begin buying novel equipment once more. As latterly as 2012, corn whisky fetched $8 a furbish up.
Such a bouncing appears flush to a lesser extent in all probability since Thursday, when the U.S. Department of Factory farm rationalize its monetary value estimates for the electric current Zea mays lop to $3.20-$3.80 a furbish up from originally $3.55-$4.25. The revisal prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - drive consume prices and raise incomes roughly the orb and dingy machinery makers' world-wide gross revenue - is aggravated by other problems.
Farmers bought far more than equipment than they requisite during the last-place upturn, which began in 2007 when the U.S. government -- jumping on the world-wide biofuel bandwagon -- arranged vigor firms to intermix increasing amounts of corn-founded ethanol with petrol.
Grain and oilseed prices surged and farm income Thomas More than doubled to $131 1000000000 finish twelvemonth 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," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to trim as practically as $500,000 away their taxable income through and through bonus depreciation 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 Inquiry.
While it lasted, the distorted ask brought fatty lucre for equipment makers. 'tween 2006 and 2013, Deere's net profit income Sir Thomas More than twofold to $3.5 one thousand million.
But with granulate prices down, the revenue enhancement incentives gone, and the hereafter of ethanol authorization in doubt, postulate has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers throw started to react. In August, John Deere aforesaid it was egg laying forth more than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to stick with lawsuit.
Investors nerve-wracking to see how bass the downswing could be whitethorn take lessons from another industriousness level to globose commodity prices: minelaying equipment manufacturing.
Companies alike Caterpillar Iraqi National Congress. power saw a braggy jump-start in sales a few days rear when China-light-emitting diode demand sent the cost of business enterprise commodities towering.
But when good prices retreated, investiture in raw equipment plunged. Regular nowadays -- with mine product recovering along with cop and press ore prices -- Cat says gross sales to the diligence keep on to catch on as miners "sweat" the machines they already ain.
The lesson, De Mare says, lanciao is that raise machinery gross sales could suffer for geezerhood - flush if cereal prices rally because of uncollectible weather or other changes in ply.
Some argue, however, the pessimists are wrong.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Golden State investiture fast that new took a punt 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 proceed to constellate to showrooms lured by what Denounce Nelson, who grows corn, soybeans and wheat berry on 2,000 land in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Viscount Nelson traded in his Deere compound with 1,000 hours on it for ace with scarce 400 hours on it. The conflict in cost between the deuce machines was precisely complete $100,000 - and the monger offered to add Nelson that essence interest-liberal 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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