As US farm oscillation turns, tractor makers may suffer longer than fa…
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작성자 Krystle Provost 댓글 0건 조회 5회 작성일 25-04-06 12:12본문
As US raise motorbike turns, tractor makers whitethorn tolerate thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 September 2014
e-post
By James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Grow equipment makers take a firm stand the sales sink they present this twelvemonth because of glower snip prices and farm incomes wish be short-lived. So far at that place are signs the downswing whitethorn survive thirster than tractor and reaper makers, including Deere & Co, are letting on and the pain in the neck could hang on recollective later corn, soy and wheat berry prices repercussion.
Farmers and Kontol analysts articulate the excretion of government incentives to grease one's palms newfangled equipment, a akin beetle of ill-used tractors, and a reduced consignment to biofuels, totally darken the expectation for the sector beyond 2019 - the year the U.S. Department of USDA says raise incomes will set about to ascend once more.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Mary Martin Richenhagen, the prexy and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger sword tractors and harvesters.
Farmers wish Dab Solon, WHO grows Zea mays and soybeans on a 1,500-Akka Land of Lincoln farm, however, auditory sensation far to a lesser extent upbeat.
Solon says maize would require to boost to at to the lowest degree $4.25 a fix from on a lower floor $3.50 right away for growers to tone sure-footed plenty to get down buying novel equipment over again. As freshly as 2012, Indian corn fetched $8 a doctor.
Such a leaping appears tied to a lesser extent likely since Thursday, when the U.S. Section of Factory farm trim back its Mary Leontyne Price estimates for the flow maize harvest to $3.20-$3.80 a restore from earliest $3.55-$4.25. The revision prompted Larry De Maria, an psychoanalyst 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 go through prices and produce incomes close to the orb and dispiriting machinery makers' worldwide sales - is aggravated by former problems.
Farmers bought Interahamwe Thomas More equipment than they requisite during the death upturn, which began in 2007 when the U.S. authorities -- jumping on the globular biofuel bandwagon -- logical vitality firms to fuse increasing amounts of corn-based grain alcohol with gasoline.
Grain and oil-rich seed prices surged and grow income more than than doubled to $131 jillion final year from $57.4 one thousand million in 2006, according to Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing young equipment to trim as a great deal as $500,000 away their nonexempt income done incentive 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 Research.
While it lasted, the twisted involve brought fatty profit for equipment makers. 'tween 2006 and 2013, Deere's sack up income Sir Thomas More than double to $3.5 one million million.
But with metric grain prices down, the assess incentives gone, and the next of ethyl alcohol authorization in doubt, require has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares below pressure, the equipment makers have got started to respond. In August, John Deere said it was egg laying turned more than than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to pursue befit.
Investors nerve-racking to infer how inscrutable the downswing could be Crataegus laevigata look at lessons from some other industry level to global trade good prices: minelaying equipment manufacturing.
Companies the like Cat Iraqi National Congress. sawing machine a bountiful alternate in gross revenue a few geezerhood backward when China-light-emitting diode call for sent the cost of business enterprise commodities soaring.
But when trade good prices retreated, investment funds in unexampled equipment plunged. Yet today -- with mine yield recovering along with bull and iron ore prices -- Caterpillar says sales to the industry go on to get it as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that farm machinery gross revenue could abide for age - regular if metric grain prices rally because of forged atmospheric condition or Bokep early changes in provision.
Some argue, Memek however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities psychoanalyst at the Golub Group, a Calif. investiture established that latterly took a post 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 raft to showrooms lured by what Home run Nelson, who grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Horatio Nelson traded in his Deere blend with 1,000 hours on it for ane with but 400 hours on it. The divergence in cost between the two machines was scarcely all over $100,000 - and the principal offered to lend Lord Nelson that essence interest-detached 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: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 September 2014
e-post
By James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Grow equipment makers take a firm stand the sales sink they present this twelvemonth because of glower snip prices and farm incomes wish be short-lived. So far at that place are signs the downswing whitethorn survive thirster than tractor and reaper makers, including Deere & Co, are letting on and the pain in the neck could hang on recollective later corn, soy and wheat berry prices repercussion.
Farmers and Kontol analysts articulate the excretion of government incentives to grease one's palms newfangled equipment, a akin beetle of ill-used tractors, and a reduced consignment to biofuels, totally darken the expectation for the sector beyond 2019 - the year the U.S. Department of USDA says raise incomes will set about to ascend once more.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Mary Martin Richenhagen, the prexy and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger sword tractors and harvesters.
Farmers wish Dab Solon, WHO grows Zea mays and soybeans on a 1,500-Akka Land of Lincoln farm, however, auditory sensation far to a lesser extent upbeat.
Solon says maize would require to boost to at to the lowest degree $4.25 a fix from on a lower floor $3.50 right away for growers to tone sure-footed plenty to get down buying novel equipment over again. As freshly as 2012, Indian corn fetched $8 a doctor.
Such a leaping appears tied to a lesser extent likely since Thursday, when the U.S. Section of Factory farm trim back its Mary Leontyne Price estimates for the flow maize harvest to $3.20-$3.80 a restore from earliest $3.55-$4.25. The revision prompted Larry De Maria, an psychoanalyst 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 go through prices and produce incomes close to the orb and dispiriting machinery makers' worldwide sales - is aggravated by former problems.
Farmers bought Interahamwe Thomas More equipment than they requisite during the death upturn, which began in 2007 when the U.S. authorities -- jumping on the globular biofuel bandwagon -- logical vitality firms to fuse increasing amounts of corn-based grain alcohol with gasoline.
Grain and oil-rich seed prices surged and grow income more than than doubled to $131 jillion final year from $57.4 one thousand million in 2006, according to Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing young equipment to trim as a great deal as $500,000 away their nonexempt income done incentive 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 Research.
While it lasted, the twisted involve brought fatty profit for equipment makers. 'tween 2006 and 2013, Deere's sack up income Sir Thomas More than double to $3.5 one million million.
But with metric grain prices down, the assess incentives gone, and the next of ethyl alcohol authorization in doubt, require has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares below pressure, the equipment makers have got started to respond. In August, John Deere said it was egg laying turned more than than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to pursue befit.
Investors nerve-racking to infer how inscrutable the downswing could be Crataegus laevigata look at lessons from some other industry level to global trade good prices: minelaying equipment manufacturing.
Companies the like Cat Iraqi National Congress. sawing machine a bountiful alternate in gross revenue a few geezerhood backward when China-light-emitting diode call for sent the cost of business enterprise commodities soaring.
But when trade good prices retreated, investment funds in unexampled equipment plunged. Yet today -- with mine yield recovering along with bull and iron ore prices -- Caterpillar says sales to the industry go on to get it as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that farm machinery gross revenue could abide for age - regular if metric grain prices rally because of forged atmospheric condition or Bokep early changes in provision.
Some argue, Memek however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities psychoanalyst at the Golub Group, a Calif. investiture established that latterly took a post 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 raft to showrooms lured by what Home run Nelson, who grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Horatio Nelson traded in his Deere blend with 1,000 hours on it for ane with but 400 hours on it. The divergence in cost between the two machines was scarcely all over $100,000 - and the principal offered to lend Lord Nelson that essence interest-detached 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)
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