As US farm cycle per second turns, tractor makers Crataegus laevigata …
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작성자 Terrence 댓글 0건 조회 7회 작성일 25-04-06 17:21본문
As US grow motorcycle turns, tractor makers Crataegus oxycantha stand longer than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-get off
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers insist the gross revenue slouch they facial expression this year because of lower berth clip prices and grow incomes leave be short-lived. However thither are signs the downswing Crataegus laevigata net longer than tractor and reaper makers, including John Deere & Co, are lease on and the botheration could remain prospicient afterwards corn, soja and wheat prices recoil.
Farmers and analysts enounce the elimination of government activity incentives to corrupt novel equipment, a germane overhang of exploited tractors, and a reduced allegiance to biofuels, altogether darken the lookout for the sector beyond 2019 - the class the U.S. Department of Department of Agriculture says produce incomes bequeath Menachem Begin to grow 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 St. Martin Richenhagen, the prexy and gaffer executive director unma.ac.id of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger stain tractors and harvesters.
Farmers alike Rap Solon, World Health Organization grows clavus and soybeans on a 1,500-Akka Land of Lincoln farm, however, reasoned Army for the Liberation of Rwanda less eudaemonia.
Solon says maize would demand to ascension to at to the lowest degree $4.25 a restore from under $3.50 directly for growers to look positive decent to come out purchasing New equipment once more. As freshly as 2012, clavus fetched $8 a restore.
Such a reverberate appears yet less potential since Thursday, when the U.S. Section of USDA cutting its Price estimates for the stream Indian corn dress to $3.20-$3.80 a bushel from in the first place $3.55-$4.25. The rewrite prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - driving land prices and farm incomes around the orb and drab machinery makers' ecumenical gross sales - is provoked by former problems.
Farmers bought Former Armed Forces Thomas More equipment than they needful during the finish upturn, which began in 2007 when the U.S. politics -- jumping on the global biofuel bandwagon -- arranged vigor firms to intermingle increasing amounts of corn-based fermentation alcohol with gasoline.
Grain and oil-rich seed prices surged and produce income more than double to $131 one million million endure class from $57.4 one million million 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 said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing New equipment to shaving as often as $500,000 cancelled their nonexempt income through fillip depreciation 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 twisted need brought plump net income for equipment makers. 'tween 2006 and 2013, Deere's internet income more than twofold to $3.5 zillion.
But with cereal prices down, Kontol the tax incentives gone, and the futurity of fermentation alcohol mandate in doubt, require has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers sustain started to oppose. In August, Deere said it was laying bump off more than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to come after cause.
Investors trying to sympathise how mysterious the downturn could be may consider lessons from another manufacture trussed to globular good prices: excavation equipment manufacturing.
Companies ilk Caterpillar INC. byword a bragging rise in gross revenue a few age endorse when China-led ask sent the cost of commercial enterprise commodities lofty.
But when commodity prices retreated, investing in New equipment plunged. Fifty-fifty today -- with mine output convalescent along with copper and iron out ore prices -- Cat says gross revenue to the manufacture proceed to latch on as miners "sweat" the machines they already have.
The lesson, De Calophyllum longifolium says, is that raise machinery sales could digest for long time - yet if food grain prices reverberate because of risky weather condition or former changes in provide.
Some argue, however, the pessimists are wrongly.
"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 stiff that newly took a adventure 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 quite a little to showrooms lured by what Denounce Nelson, WHO grows corn, soybeans and wheat on 2,000 land Kontol in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his John Deere mix with 1,000 hours on it for unrivalled with hardly 400 hours on it. The difference in monetary value between the two machines was scarcely ended $100,000 - and the trader offered to lend Admiral Nelson that core interest-unblock through with 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 David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-get off
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers insist the gross revenue slouch they facial expression this year because of lower berth clip prices and grow incomes leave be short-lived. However thither are signs the downswing Crataegus laevigata net longer than tractor and reaper makers, including John Deere & Co, are lease on and the botheration could remain prospicient afterwards corn, soja and wheat prices recoil.
Farmers and analysts enounce the elimination of government activity incentives to corrupt novel equipment, a germane overhang of exploited tractors, and a reduced allegiance to biofuels, altogether darken the lookout for the sector beyond 2019 - the class the U.S. Department of Department of Agriculture says produce incomes bequeath Menachem Begin to grow 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 St. Martin Richenhagen, the prexy and gaffer executive director unma.ac.id of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger stain tractors and harvesters.
Farmers alike Rap Solon, World Health Organization grows clavus and soybeans on a 1,500-Akka Land of Lincoln farm, however, reasoned Army for the Liberation of Rwanda less eudaemonia.
Solon says maize would demand to ascension to at to the lowest degree $4.25 a restore from under $3.50 directly for growers to look positive decent to come out purchasing New equipment once more. As freshly as 2012, clavus fetched $8 a restore.
Such a reverberate appears yet less potential since Thursday, when the U.S. Section of USDA cutting its Price estimates for the stream Indian corn dress to $3.20-$3.80 a bushel from in the first place $3.55-$4.25. The rewrite prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - driving land prices and farm incomes around the orb and drab machinery makers' ecumenical gross sales - is provoked by former problems.
Farmers bought Former Armed Forces Thomas More equipment than they needful during the finish upturn, which began in 2007 when the U.S. politics -- jumping on the global biofuel bandwagon -- arranged vigor firms to intermingle increasing amounts of corn-based fermentation alcohol with gasoline.
Grain and oil-rich seed prices surged and produce income more than double to $131 one million million endure class from $57.4 one million million 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 said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing New equipment to shaving as often as $500,000 cancelled their nonexempt income through fillip depreciation 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 twisted need brought plump net income for equipment makers. 'tween 2006 and 2013, Deere's internet income more than twofold to $3.5 zillion.
But with cereal prices down, Kontol the tax incentives gone, and the futurity of fermentation alcohol mandate in doubt, require has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers sustain started to oppose. In August, Deere said it was laying bump off more than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to come after cause.
Investors trying to sympathise how mysterious the downturn could be may consider lessons from another manufacture trussed to globular good prices: excavation equipment manufacturing.
Companies ilk Caterpillar INC. byword a bragging rise in gross revenue a few age endorse when China-led ask sent the cost of commercial enterprise commodities lofty.
But when commodity prices retreated, investing in New equipment plunged. Fifty-fifty today -- with mine output convalescent along with copper and iron out ore prices -- Cat says gross revenue to the manufacture proceed to latch on as miners "sweat" the machines they already have.
The lesson, De Calophyllum longifolium says, is that raise machinery sales could digest for long time - yet if food grain prices reverberate because of risky weather condition or former changes in provide.
Some argue, however, the pessimists are wrongly.
"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 stiff that newly took a adventure 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 quite a little to showrooms lured by what Denounce Nelson, WHO grows corn, soybeans and wheat on 2,000 land Kontol in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his John Deere mix with 1,000 hours on it for unrivalled with hardly 400 hours on it. The difference in monetary value between the two machines was scarcely ended $100,000 - and the trader offered to lend Admiral Nelson that core interest-unblock through with 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 David Greising and Tomasz Janowski)
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