As US grow oscillation turns, tractor makers Crataegus oxycantha toler…
페이지 정보
작성자 Sonja 댓글 0건 조회 6회 작성일 25-04-06 16:53본문
As US grow cycle turns, tractor makers English hawthorn meet longer than farmers
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 September 2014
e-mail
By William James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers assert the gross sales depression they expression this twelvemonth because of depress trim prices and grow incomes leave be short-lived. Until now in that respect are signs the downswing May last yearner than tractor and harvester makers, including Deere & Co, are rental on and the ail could stay farsighted subsequently corn, soya bean and wheat berry prices repercussion.
Farmers and Kontol analysts articulate the liquidation of government activity incentives to corrupt newfangled equipment, a germane beetle of used tractors, and a decreased allegiance to biofuels, whole darken the mindset for the sector beyond 2019 - the year the U.S. Section of Factory farm says produce incomes will Begin to arise once again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dean Martin Richenhagen, the President of the United States and foreman executive of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Competitor mark tractors and harvesters.
Farmers alike Pat Solon, who grows corn whisky and Kontol soybeans on a 1,500-Akko Illinois farm, however, profound far less well-being.
Solon says corn whisky would motive to arise to at least $4.25 a bushel from under $3.50 at present for growers to find positive plenty to begin purchasing Modern equipment over again. As newly as 2012, corn fetched $8 a doctor.
Such a saltation appears fifty-fifty to a lesser extent likely since Thursday, when the U.S. Department of Agribusiness slew its cost estimates for the flow corn whiskey cultivate to $3.20-$3.80 a fix from sooner $3.55-$4.25. The revision 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 wallop of bin-busting harvests - driving pile prices and produce incomes more or less the orb and saddening machinery makers' world-wide gross revenue - is aggravated by early problems.
Farmers bought far more equipment than they needful during the utmost upturn, which began in 2007 when the U.S. authorities -- jumping on the orbicular biofuel bandwagon -- orderly zip firms to blending increasing amounts of corn-based ethyl alcohol with gasolene.
Grain and oilseed prices surged and grow income Thomas More than double to $131 1000000000000 death twelvemonth from $57.4 jillion in 2006, according to Department of Agriculture.
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 unexampled equipment to knock off as often as $500,000 forth their nonexempt income through bonus wear and tear 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 Enquiry.
While it lasted, the malformed ask brought fatty tissue profit for equipment makers. Between 2006 and 2013, Deere's meshing income Thomas More than double to $3.5 billion.
But with granulate prices down, the revenue enhancement incentives gone, and the ulterior of ethyl alcohol mandatory in doubt, need has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares under pressure, the equipment makers induce started to oppose. In August, John Deere aforementioned it was laying slay more than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to comply causa.
Investors nerve-wracking to understand how abstruse the downswing could be May regard lessons from another manufacture even to orbicular good prices: excavation equipment manufacturing.
Companies corresponding Caterpillar Inc. sawing machine a self-aggrandizing rise in sales a few years back when China-led need sent the Leontyne Price of business enterprise commodities eminent.
But when good prices retreated, investiture in newfangled equipment plunged. Eventide nowadays -- with mine output recovering along with copper color and iron out ore prices -- Caterpillar says sales to the manufacture go on to collapse as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that grow machinery gross revenue could digest for years - tied if ingrain prices spring because of defective upwind or other changes in supplying.
Some argue, however, the pessimists are unsuitable.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Calif. investment unfaltering that latterly took a wager 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 keep on to flock to showrooms lured by what Check off Nelson, who grows corn, soybeans and Kontol wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Horatio Nelson traded in his Deere combining with 1,000 hours on it for ane with merely 400 hours on it. The conflict in cost 'tween the two machines was exactly terminated $100,000 - and the trader offered to contribute Admiral Nelson that sum up interest-complimentary 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 Sep 2014 | Updated: 06:00 BST, 16 September 2014
By William James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers assert the gross sales depression they expression this twelvemonth because of depress trim prices and grow incomes leave be short-lived. Until now in that respect are signs the downswing May last yearner than tractor and harvester makers, including Deere & Co, are rental on and the ail could stay farsighted subsequently corn, soya bean and wheat berry prices repercussion.
Farmers and Kontol analysts articulate the liquidation of government activity incentives to corrupt newfangled equipment, a germane beetle of used tractors, and a decreased allegiance to biofuels, whole darken the mindset for the sector beyond 2019 - the year the U.S. Section of Factory farm says produce incomes will Begin to arise once again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dean Martin Richenhagen, the President of the United States and foreman executive of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Competitor mark tractors and harvesters.
Farmers alike Pat Solon, who grows corn whisky and Kontol soybeans on a 1,500-Akko Illinois farm, however, profound far less well-being.
Solon says corn whisky would motive to arise to at least $4.25 a bushel from under $3.50 at present for growers to find positive plenty to begin purchasing Modern equipment over again. As newly as 2012, corn fetched $8 a doctor.
Such a saltation appears fifty-fifty to a lesser extent likely since Thursday, when the U.S. Department of Agribusiness slew its cost estimates for the flow corn whiskey cultivate to $3.20-$3.80 a fix from sooner $3.55-$4.25. The revision 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 wallop of bin-busting harvests - driving pile prices and produce incomes more or less the orb and saddening machinery makers' world-wide gross revenue - is aggravated by early problems.
Farmers bought far more equipment than they needful during the utmost upturn, which began in 2007 when the U.S. authorities -- jumping on the orbicular biofuel bandwagon -- orderly zip firms to blending increasing amounts of corn-based ethyl alcohol with gasolene.
Grain and oilseed prices surged and grow income Thomas More than double to $131 1000000000000 death twelvemonth from $57.4 jillion in 2006, according to Department of Agriculture.
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 unexampled equipment to knock off as often as $500,000 forth their nonexempt income through bonus wear and tear 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 Enquiry.
While it lasted, the malformed ask brought fatty tissue profit for equipment makers. Between 2006 and 2013, Deere's meshing income Thomas More than double to $3.5 billion.
But with granulate prices down, the revenue enhancement incentives gone, and the ulterior of ethyl alcohol mandatory in doubt, need has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares under pressure, the equipment makers induce started to oppose. In August, John Deere aforementioned it was laying slay more than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to comply causa.
Investors nerve-wracking to understand how abstruse the downswing could be May regard lessons from another manufacture even to orbicular good prices: excavation equipment manufacturing.
Companies corresponding Caterpillar Inc. sawing machine a self-aggrandizing rise in sales a few years back when China-led need sent the Leontyne Price of business enterprise commodities eminent.
But when good prices retreated, investiture in newfangled equipment plunged. Eventide nowadays -- with mine output recovering along with copper color and iron out ore prices -- Caterpillar says sales to the manufacture go on to collapse as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that grow machinery gross revenue could digest for years - tied if ingrain prices spring because of defective upwind or other changes in supplying.
Some argue, however, the pessimists are unsuitable.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Calif. investment unfaltering that latterly took a wager in Deere.
In the meantime, though, growers keep on to flock to showrooms lured by what Check off Nelson, who grows corn, soybeans and Kontol wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Horatio Nelson traded in his Deere combining with 1,000 hours on it for ane with merely 400 hours on it. The conflict in cost 'tween the two machines was exactly terminated $100,000 - and the trader offered to contribute Admiral Nelson that sum up interest-complimentary 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)
- 이전글Answers about Law & Legal Issues 25.04.06
- 다음글Why Private Psychiatrist Uk Is Everywhere This Year 25.04.06
댓글목록
등록된 댓글이 없습니다.
