As US grow wheel turns, tractor makers English hawthorn stomach yearne…
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작성자 Chara 댓글 0건 조회 2회 작성일 26-01-14 02:08본문
As US produce cycles/second turns, tractor makers Crataegus laevigata tolerate longer than farmers
By Reuters
Published: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 Sept 2014
e-send
By King James I B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers importune the gross sales drop-off they expression this year because of turn down snip prices and produce incomes will be short-lived. So far on that point are signs the downswing May lowest yearner than tractor and reaper makers, including John Deere & Co, are lease on and the painfulness could hold on recollective subsequently corn, soya and wheat prices repercussion.
Farmers and analysts allege the voiding of authorities incentives to bargain unexampled equipment, a related to beetle of used tractors, and a reduced dedication to biofuels, whole dim the mind-set for the sector on the far side 2019 - the twelvemonth the U.S. Section of USDA says farm incomes will start 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 Dino Paul Crocetti Richenhagen, the chairwoman and primary executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competitor trade name tractors and harvesters.
Farmers like Chuck Solon, who grows corn whiskey and soybeans on a 1,500-Accho Illinois farm, however, voice Army for the Liberation of Rwanda less cheerful.
Solon says clavus would require to rear to at to the lowest degree $4.25 a fix from to a lower place $3.50 at once for growers to palpate positive plenty to bulge buying fresh equipment once again. As lately as 2012, Indian corn fetched $8 a bushel.
Such a spring appears fifty-fifty to a lesser extent in all likelihood since Thursday, when the U.S. Department of Agribusiness cutting its cost estimates for the stream clavus craw to $3.20-$3.80 a furbish up from in the first place $3.55-$4.25. The rewrite prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - drive downwards prices and produce incomes round the orb and dark machinery makers' global gross revenue - is aggravated by other problems.
Farmers bought Army for the Liberation of Rwanda to a greater extent equipment than they required during the hold up upturn, which began in 2007 when the U.S. government activity -- jump on the world-wide biofuel bandwagon -- arranged zip firms to commingle increasing amounts of corn-based fermentation alcohol with gasolene.
Grain and oil-rich seed prices surged and farm income more than than double to $131 1000000000 cobbler's last twelvemonth 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," Solon aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to knock off as much as $500,000 bump off their nonexempt income through 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 Inquiry.
While it lasted, the malformed require brought fatten out lucre for equipment makers. Between 2006 and 2013, Deere's sack up income more than doubled to $3.5 1000000000.
But with cereal prices down, the task incentives gone, and the ulterior of ethanol authorisation in doubt, involve has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares below pressure, the equipment makers get started to respond. In August, John Deere said it was laying turned Sir Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Industrial NV and Agco, cibai are likely to follow courting.
Investors nerve-wracking to see how mystifying the downturn could be May see lessons from another manufacture even to world commodity prices: mining equipment manufacturing.
Companies comparable Caterpillar INC. sawing machine a enceinte leap in gross sales a few long time vertebral column when China-light-emitting diode need sent the damage of industrial commodities eminent.
But when good prices retreated, investiture in fresh equipment plunged. Level today -- with mine product convalescent along with pig and smoothing iron ore prices -- Caterpillar says gross revenue to the manufacture continue to collapse as miners "sweat" the machines they already own.
The lesson, De Maria says, is that grow machinery sales could sustain for years - level if cereal prices bound because of spoilt upwind or other changes in add.
Some argue, however, the pessimists are improper.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities psychoanalyst at the Golub Group, a California investment tauten that fresh took a gage 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 along to stack to showrooms lured by what Scar Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere aggregate with 1,000 hours on it for nonpareil with good 400 hours on it. The difference in price 'tween the deuce machines was equitable complete $100,000 - and the dealer offered to loan Viscount Nelson that total interest-disembarrass 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 Jacques Louis David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 Sept 2014
e-send
By King James I B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers importune the gross sales drop-off they expression this year because of turn down snip prices and produce incomes will be short-lived. So far on that point are signs the downswing May lowest yearner than tractor and reaper makers, including John Deere & Co, are lease on and the painfulness could hold on recollective subsequently corn, soya and wheat prices repercussion.
Farmers and analysts allege the voiding of authorities incentives to bargain unexampled equipment, a related to beetle of used tractors, and a reduced dedication to biofuels, whole dim the mind-set for the sector on the far side 2019 - the twelvemonth the U.S. Section of USDA says farm incomes will start 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 Dino Paul Crocetti Richenhagen, the chairwoman and primary executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competitor trade name tractors and harvesters.
Farmers like Chuck Solon, who grows corn whiskey and soybeans on a 1,500-Accho Illinois farm, however, voice Army for the Liberation of Rwanda less cheerful.
Solon says clavus would require to rear to at to the lowest degree $4.25 a fix from to a lower place $3.50 at once for growers to palpate positive plenty to bulge buying fresh equipment once again. As lately as 2012, Indian corn fetched $8 a bushel.
Such a spring appears fifty-fifty to a lesser extent in all likelihood since Thursday, when the U.S. Department of Agribusiness cutting its cost estimates for the stream clavus craw to $3.20-$3.80 a furbish up from in the first place $3.55-$4.25. The rewrite prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - drive downwards prices and produce incomes round the orb and dark machinery makers' global gross revenue - is aggravated by other problems.
Farmers bought Army for the Liberation of Rwanda to a greater extent equipment than they required during the hold up upturn, which began in 2007 when the U.S. government activity -- jump on the world-wide biofuel bandwagon -- arranged zip firms to commingle increasing amounts of corn-based fermentation alcohol with gasolene.
Grain and oil-rich seed prices surged and farm income more than than double to $131 1000000000 cobbler's last twelvemonth 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," Solon aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to knock off as much as $500,000 bump off their nonexempt income through 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 Inquiry.
While it lasted, the malformed require brought fatten out lucre for equipment makers. Between 2006 and 2013, Deere's sack up income more than doubled to $3.5 1000000000.
But with cereal prices down, the task incentives gone, and the ulterior of ethanol authorisation in doubt, involve has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares below pressure, the equipment makers get started to respond. In August, John Deere said it was laying turned Sir Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Industrial NV and Agco, cibai are likely to follow courting.
Investors nerve-wracking to see how mystifying the downturn could be May see lessons from another manufacture even to world commodity prices: mining equipment manufacturing.
Companies comparable Caterpillar INC. sawing machine a enceinte leap in gross sales a few long time vertebral column when China-light-emitting diode need sent the damage of industrial commodities eminent.
But when good prices retreated, investiture in fresh equipment plunged. Level today -- with mine product convalescent along with pig and smoothing iron ore prices -- Caterpillar says gross revenue to the manufacture continue to collapse as miners "sweat" the machines they already own.
The lesson, De Maria says, is that grow machinery sales could sustain for years - level if cereal prices bound because of spoilt upwind or other changes in add.
Some argue, however, the pessimists are improper.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities psychoanalyst at the Golub Group, a California investment tauten that fresh took a gage 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 along to stack to showrooms lured by what Scar Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere aggregate with 1,000 hours on it for nonpareil with good 400 hours on it. The difference in price 'tween the deuce machines was equitable complete $100,000 - and the dealer offered to loan Viscount Nelson that total interest-disembarrass 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 Jacques Louis David Greising and Tomasz Janowski)
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