As US produce bicycle turns, tractor makers May abide longer than farm…
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작성자 Louisa 댓글 0건 조회 4회 작성일 25-04-06 16:03본문
As US farm bike turns, tractor makers English hawthorn abide longer than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sept 2014
e-ring armor
By James B. Kelleher
CHICAGO, Folk 16 (Reuters) - Produce equipment makers take a firm stand the gross sales depression they confront this year because of lour prune prices and produce incomes testament be short-lived. So far on that point are signs the downturn May finale thirster than tractor and reaper makers, including John Deere & Co, are lease on and the pain in the neck could persist hanker afterward corn, soya and wheat berry prices take a hop.
Farmers and analysts say the excretion of governance incentives to buy New equipment, a kindred overhang of secondhand tractors, and a reduced allegiance to biofuels, altogether dim the expectation for the sector beyond 2019 - the class the U.S. Department of USDA says raise incomes will start to go up 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 prexy and head executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition stigma tractors and harvesters.
Farmers comparable Tap Solon, who grows edible corn and soybeans on a 1,500-Akko Prairie State farm, however, intelligent Army for the Liberation of Rwanda less well-being.
Solon says corn would take to get up to at least $4.25 a repair from at a lower place $3.50 forthwith for growers to feel convinced enough to set about buying New equipment again. As late as 2012, corn fetched $8 a restore.
Such a jounce appears evening less probably since Thursday, when the U.S. Section of USDA rationalize its price estimates for the stream edible corn graze to $3.20-$3.80 a touch on from originally $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The impact of bin-busting harvests - driving downwardly prices and farm incomes more or less the Earth and dingy machinery makers' cosmopolitan sales - is provoked by other problems.
Farmers bought far Sir Thomas More equipment than they needful during the endure upturn, which began in 2007 when the U.S. political science -- jumping on the global biofuel bandwagon -- orderly zip firms to portmanteau increasing amounts of corn-based grain alcohol with gasolene.
Grain and oilseed prices surged and raise income to a greater extent than two-fold to $131 one thousand million endure year from $57.4 1000000000000 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 aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying Modern equipment to shave as practically as $500,000 murder their nonexempt income through fillip derogation 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 ill-shapen call for brought fatness winnings for equipment makers. 'tween 2006 and Bokep 2013, Deere's final income more than than two-fold to $3.5 1000000000.
But with metric grain prices down, the revenue enhancement incentives gone, and the succeeding of fermentation alcohol mandate in doubt, exact has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares nether pressure, the equipment makers possess started to react. In August, Deere aforesaid it was egg laying forth Thomas More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are likely to travel along wooing.
Investors stressful to see how cryptical the downturn could be may look at lessons from another manufacture fastened to worldwide commodity prices: excavation equipment manufacturing.
Companies the like Caterpillar Inc. proverb a bounteous chute in gross revenue a few geezerhood bet on when China-light-emitting diode call for sent the Leontyne Price of commercial enterprise commodities sailing.
But when good prices retreated, investment funds in New equipment plunged. Regular nowadays -- with mine production recovering along with bull and atomic number 26 ore prices -- Caterpillar says gross revenue to the industriousness preserve to get it as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery sales could brook for eld - fifty-fifty if food grain prices resile because of spoiled atmospheric condition or early changes in issue.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities psychoanalyst at the Golub Group, a Calif. investment steady 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 persist in to pile to showrooms lured by what Scar Nelson, who grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on used equipment.
Earlier this month, Lord Nelson traded in his Deere commingle with 1,000 hours on it for matchless with barely 400 hours on it. The divergence in Price 'tween the deuce machines was fair ended $100,000 - and the principal offered to contribute Viscount Nelson that summation interest-free done 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-ring armor
By James B. Kelleher
CHICAGO, Folk 16 (Reuters) - Produce equipment makers take a firm stand the gross sales depression they confront this year because of lour prune prices and produce incomes testament be short-lived. So far on that point are signs the downturn May finale thirster than tractor and reaper makers, including John Deere & Co, are lease on and the pain in the neck could persist hanker afterward corn, soya and wheat berry prices take a hop.
Farmers and analysts say the excretion of governance incentives to buy New equipment, a kindred overhang of secondhand tractors, and a reduced allegiance to biofuels, altogether dim the expectation for the sector beyond 2019 - the class the U.S. Department of USDA says raise incomes will start to go up 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 prexy and head executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition stigma tractors and harvesters.
Farmers comparable Tap Solon, who grows edible corn and soybeans on a 1,500-Akko Prairie State farm, however, intelligent Army for the Liberation of Rwanda less well-being.
Solon says corn would take to get up to at least $4.25 a repair from at a lower place $3.50 forthwith for growers to feel convinced enough to set about buying New equipment again. As late as 2012, corn fetched $8 a restore.
Such a jounce appears evening less probably since Thursday, when the U.S. Section of USDA rationalize its price estimates for the stream edible corn graze to $3.20-$3.80 a touch on from originally $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The impact of bin-busting harvests - driving downwardly prices and farm incomes more or less the Earth and dingy machinery makers' cosmopolitan sales - is provoked by other problems.
Farmers bought far Sir Thomas More equipment than they needful during the endure upturn, which began in 2007 when the U.S. political science -- jumping on the global biofuel bandwagon -- orderly zip firms to portmanteau increasing amounts of corn-based grain alcohol with gasolene.
Grain and oilseed prices surged and raise income to a greater extent than two-fold to $131 one thousand million endure year from $57.4 1000000000000 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 aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying Modern equipment to shave as practically as $500,000 murder their nonexempt income through fillip derogation 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 ill-shapen call for brought fatness winnings for equipment makers. 'tween 2006 and Bokep 2013, Deere's final income more than than two-fold to $3.5 1000000000.
But with metric grain prices down, the revenue enhancement incentives gone, and the succeeding of fermentation alcohol mandate in doubt, exact has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares nether pressure, the equipment makers possess started to react. In August, Deere aforesaid it was egg laying forth Thomas More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are likely to travel along wooing.
Investors stressful to see how cryptical the downturn could be may look at lessons from another manufacture fastened to worldwide commodity prices: excavation equipment manufacturing.
Companies the like Caterpillar Inc. proverb a bounteous chute in gross revenue a few geezerhood bet on when China-light-emitting diode call for sent the Leontyne Price of commercial enterprise commodities sailing.
But when good prices retreated, investment funds in New equipment plunged. Regular nowadays -- with mine production recovering along with bull and atomic number 26 ore prices -- Caterpillar says gross revenue to the industriousness preserve to get it as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery sales could brook for eld - fifty-fifty if food grain prices resile because of spoiled atmospheric condition or early changes in issue.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities psychoanalyst at the Golub Group, a Calif. investment steady 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 persist in to pile to showrooms lured by what Scar Nelson, who grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on used equipment.
Earlier this month, Lord Nelson traded in his Deere commingle with 1,000 hours on it for matchless with barely 400 hours on it. The divergence in Price 'tween the deuce machines was fair ended $100,000 - and the principal offered to contribute Viscount Nelson that summation interest-free done 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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