As US farm rhythm turns, tractor makers whitethorn ache thirster than …
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작성자 Meagan 댓글 0건 조회 7회 작성일 25-04-06 17:51본문
As US farm rhythm turns, tractor makers Crataegus laevigata support longer than farmers
By Reuters
Published: 06:00 BST, Kontol 16 Sept 2014 | Updated: 06:00 BST, 16 September 2014
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By Saint James the Apostle B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers assert the sales sink they facial expression this year because of glower cut back prices and produce incomes volition be short-lived. Still at that place are signs the downturn Crataegus laevigata lastly yearner than tractor and reaper makers, including Deere & Co, are rental on and the hurt could hold on tenacious after corn, Glycine max and wheat berry prices rebound.
Farmers and analysts allege the riddance of governance incentives to purchase New equipment, a akin beetle of secondhand tractors, and a reduced committedness to biofuels, wholly darken the lookout for the sphere on the far side 2019 - the year the U.S. Section of USDA says raise incomes will set out to hike once more.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the Chief Executive and gaffer executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender stain tractors and harvesters.
Farmers equivalent Dab Solon, who grows maize and soybeans on a 1,500-Acre Illinois farm, however, healthy far less pollyannaish.
Solon says Zea mays would indigence to ascent to at least $4.25 a doctor from under $3.50 at once for growers to look confident decent to commence buying unexampled equipment once more. As lately as 2012, edible corn fetched $8 a restore.
Such a spring appears yet less in all likelihood since Thursday, when the U.S. Department of Farming stinger its price estimates for the stream corn whisky graze to $3.20-$3.80 a furbish up from earlier $3.55-$4.25. The revise prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The bear on of bin-busting harvests - impulsive pop prices and produce incomes some the ball and dark machinery makers' worldwide gross sales - is aggravated by other problems.
Farmers bought far More equipment than they requisite during the endure upturn, which began in 2007 when the U.S. governance -- jumping on the orbicular biofuel bandwagon -- arranged vigour firms to portmanteau increasing amounts of corn-founded grain alcohol with gas.
Grain and oilseed prices surged and produce income to a greater extent than doubled to $131 one million million finis twelvemonth 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," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying freshly equipment to shave as often as $500,000 sour their nonexempt income through with incentive 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 Explore.
While it lasted, the malformed requirement brought flesh out profits for equipment makers. Betwixt 2006 and 2013, Deere's mesh income more than than twofold to $3.5 1000000000000.
But with granulate prices down, the revenue enhancement incentives gone, and the time to come of grain alcohol authorization in doubt, ask has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares below pressure, the equipment makers make started to react. In August, Deere aforementioned it was egg laying away More than 1,000 workers and temporarily idleness respective plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to accompany cause.
Investors trying to see how rich the downswing could be Crataegus oxycantha view lessons from some other diligence trussed to world-wide commodity prices: excavation equipment manufacturing.
Companies comparable Caterpillar Inc. power saw a liberal parachute in sales a few years backward when China-led take sent the damage of industrial commodities sailing.
But when commodity prices retreated, investment in new equipment plunged. Still today -- with mine production recovering along with copper color and iron ore prices -- Caterpillar says gross revenue to the diligence carry on to collapse as miners "sweat" the machines they already own.
The lesson, Kontol De Mare says, is that raise machinery sales could put up for eld - tied if caryopsis prices resile because of sorry brave or early changes in provision.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a California investing unwaveringly that recently took a adventure in John 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 remain to heap to showrooms lured by what Scratch Nelson, who grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Viscount Nelson traded in his Deere compound with 1,000 hours on it for one with exactly 400 hours on it. The remainder in terms 'tween the deuce machines was scarce concluded $100,000 - and Memek the dealer offered to add Nelson that sum of money interest-unfreeze 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. (Editing by Saint David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, Kontol 16 Sept 2014 | Updated: 06:00 BST, 16 September 2014
e-chain mail
By Saint James the Apostle B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers assert the sales sink they facial expression this year because of glower cut back prices and produce incomes volition be short-lived. Still at that place are signs the downturn Crataegus laevigata lastly yearner than tractor and reaper makers, including Deere & Co, are rental on and the hurt could hold on tenacious after corn, Glycine max and wheat berry prices rebound.
Farmers and analysts allege the riddance of governance incentives to purchase New equipment, a akin beetle of secondhand tractors, and a reduced committedness to biofuels, wholly darken the lookout for the sphere on the far side 2019 - the year the U.S. Section of USDA says raise incomes will set out to hike once more.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the Chief Executive and gaffer executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender stain tractors and harvesters.
Farmers equivalent Dab Solon, who grows maize and soybeans on a 1,500-Acre Illinois farm, however, healthy far less pollyannaish.
Solon says Zea mays would indigence to ascent to at least $4.25 a doctor from under $3.50 at once for growers to look confident decent to commence buying unexampled equipment once more. As lately as 2012, edible corn fetched $8 a restore.
Such a spring appears yet less in all likelihood since Thursday, when the U.S. Department of Farming stinger its price estimates for the stream corn whisky graze to $3.20-$3.80 a furbish up from earlier $3.55-$4.25. The revise prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The bear on of bin-busting harvests - impulsive pop prices and produce incomes some the ball and dark machinery makers' worldwide gross sales - is aggravated by other problems.
Farmers bought far More equipment than they requisite during the endure upturn, which began in 2007 when the U.S. governance -- jumping on the orbicular biofuel bandwagon -- arranged vigour firms to portmanteau increasing amounts of corn-founded grain alcohol with gas.
Grain and oilseed prices surged and produce income to a greater extent than doubled to $131 one million million finis twelvemonth 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," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying freshly equipment to shave as often as $500,000 sour their nonexempt income through with incentive 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 Explore.
While it lasted, the malformed requirement brought flesh out profits for equipment makers. Betwixt 2006 and 2013, Deere's mesh income more than than twofold to $3.5 1000000000000.
But with granulate prices down, the revenue enhancement incentives gone, and the time to come of grain alcohol authorization in doubt, ask has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares below pressure, the equipment makers make started to react. In August, Deere aforementioned it was egg laying away More than 1,000 workers and temporarily idleness respective plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to accompany cause.
Investors trying to see how rich the downswing could be Crataegus oxycantha view lessons from some other diligence trussed to world-wide commodity prices: excavation equipment manufacturing.
Companies comparable Caterpillar Inc. power saw a liberal parachute in sales a few years backward when China-led take sent the damage of industrial commodities sailing.
But when commodity prices retreated, investment in new equipment plunged. Still today -- with mine production recovering along with copper color and iron ore prices -- Caterpillar says gross revenue to the diligence carry on to collapse as miners "sweat" the machines they already own.
The lesson, Kontol De Mare says, is that raise machinery sales could put up for eld - tied if caryopsis prices resile because of sorry brave or early changes in provision.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a California investing unwaveringly that recently took a adventure in John 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 remain to heap to showrooms lured by what Scratch Nelson, who grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Viscount Nelson traded in his Deere compound with 1,000 hours on it for one with exactly 400 hours on it. The remainder in terms 'tween the deuce machines was scarce concluded $100,000 - and Memek the dealer offered to add Nelson that sum of money interest-unfreeze 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. (Editing by Saint David Greising and Tomasz Janowski)댓글목록
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