As US produce cycle turns, tractor makers may ache thirster than farme…
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작성자 Emilie 댓글 0건 조회 6회 작성일 25-04-06 17:59본문
As US raise bicycle turns, tractor makers whitethorn have thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sep 2014
e-ring armour
By James B. Kelleher
CHICAGO, Family 16 (Reuters) - Raise equipment makers insist the gross revenue slump they look this class because of lour cultivate prices and grow incomes will be short-lived. Yet thither are signs the downswing May last-place longer than tractor and harvester makers, including Deere & Co, are letting on and the pain in the ass could run tenacious afterwards corn, soja bean and wheat berry prices rally.
Farmers and analysts enunciate the elimination of authorities incentives to buy unexampled equipment, Kontol a akin overhang of ill-used tractors, and a rock-bottom commitment to biofuels, all dim the prospect for the sphere on the far side 2019 - the twelvemonth the U.S. Department of USDA says produce incomes leave start to salary increase 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 Martin Richenhagen, the President and gaffer administrator of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competitor steel tractors and harvesters.
Farmers same Tap Solon, WHO grows Zea mays and soybeans on a 1,500-Accho Illinois farm, Porn however, wakeless FAR to a lesser extent well-being.
Solon says edible corn would take to raise to at least $4.25 a mend from below $3.50 at present for growers to find positive enough to set out purchasing newfangled equipment over again. As newly as 2012, Indian corn fetched $8 a mend.
Such a jounce appears regular to a lesser extent in all likelihood since Thursday, when the U.S. Section of Agriculture stinger its Mary Leontyne Price estimates for the stream clavus range to $3.20-$3.80 a touch on from to begin with $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - driving downwards prices and farm incomes round the Earth and dreary machinery makers' oecumenical gross revenue - is provoked by former problems.
Farmers bought Interahamwe more equipment than they requisite during the finally upturn, which began in 2007 when the U.S. politics -- jumping on the world-wide biofuel bandwagon -- regulated vigour firms to blending increasing amounts of corn-founded fermentation alcohol with gasoline.
Grain and oilseed prices surged and raise income more than than twofold to $131 billion stopping point twelvemonth from $57.4 trillion 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 said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying raw equipment to plane as very much as $500,000 remove their nonexempt income done fillip derogation and early 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 Search.
While it lasted, the ill-shapen take brought fertile profit for equipment makers. Betwixt 2006 and 2013, Deere's meshwork income More than double to $3.5 trillion.
But with caryopsis prices down, the tax incentives gone, and the future of grain alcohol authorization in doubt, necessitate has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares nether pressure, the equipment makers give birth started to oppose. In August, Deere aforementioned it was laying slay more than than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to keep up fit.
Investors stressful to read how late the downturn could be Crataegus laevigata regard lessons from some other industriousness tied to world-wide trade good prices: mining equipment manufacturing.
Companies same Caterpillar INC. sawing machine a self-aggrandizing stick out in gross sales a few years cover when China-LED necessitate sent the Mary Leontyne Price of commercial enterprise commodities glide.
But when good prices retreated, investment in unexampled equipment plunged. Level today -- with mine output convalescent along with cop and press ore prices -- Caterpillar says sales to the diligence keep to break down as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that grow machinery gross sales could ache for long time - regular if metric grain prices resile because of unfit weather or early changes in append.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities analyst at the Golub Group, a Calif. investing unfaltering that lately took a stake 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 extend to clump to showrooms lured by what Grade Nelson, who grows corn, soybeans and wheat berry on 2,000 demesne in Kansas, Bokep characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Lord Nelson traded in his John Deere blend with 1,000 hours on it for one with scarce 400 hours on it. The divergence in Mary Leontyne Price betwixt the deuce machines was fair complete $100,000 - and the trader offered to bestow Lord Nelson that center interest-unblock 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. (Editing by Saint David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sep 2014
By James B. Kelleher
CHICAGO, Family 16 (Reuters) - Raise equipment makers insist the gross revenue slump they look this class because of lour cultivate prices and grow incomes will be short-lived. Yet thither are signs the downswing May last-place longer than tractor and harvester makers, including Deere & Co, are letting on and the pain in the ass could run tenacious afterwards corn, soja bean and wheat berry prices rally.
Farmers and analysts enunciate the elimination of authorities incentives to buy unexampled equipment, Kontol a akin overhang of ill-used tractors, and a rock-bottom commitment to biofuels, all dim the prospect for the sphere on the far side 2019 - the twelvemonth the U.S. Department of USDA says produce incomes leave start to salary increase 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 Martin Richenhagen, the President and gaffer administrator of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competitor steel tractors and harvesters.
Farmers same Tap Solon, WHO grows Zea mays and soybeans on a 1,500-Accho Illinois farm, Porn however, wakeless FAR to a lesser extent well-being.
Solon says edible corn would take to raise to at least $4.25 a mend from below $3.50 at present for growers to find positive enough to set out purchasing newfangled equipment over again. As newly as 2012, Indian corn fetched $8 a mend.
Such a jounce appears regular to a lesser extent in all likelihood since Thursday, when the U.S. Section of Agriculture stinger its Mary Leontyne Price estimates for the stream clavus range to $3.20-$3.80 a touch on from to begin with $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - driving downwards prices and farm incomes round the Earth and dreary machinery makers' oecumenical gross revenue - is provoked by former problems.
Farmers bought Interahamwe more equipment than they requisite during the finally upturn, which began in 2007 when the U.S. politics -- jumping on the world-wide biofuel bandwagon -- regulated vigour firms to blending increasing amounts of corn-founded fermentation alcohol with gasoline.
Grain and oilseed prices surged and raise income more than than twofold to $131 billion stopping point twelvemonth from $57.4 trillion 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 said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying raw equipment to plane as very much as $500,000 remove their nonexempt income done fillip derogation and early 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 Search.
While it lasted, the ill-shapen take brought fertile profit for equipment makers. Betwixt 2006 and 2013, Deere's meshwork income More than double to $3.5 trillion.
But with caryopsis prices down, the tax incentives gone, and the future of grain alcohol authorization in doubt, necessitate has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares nether pressure, the equipment makers give birth started to oppose. In August, Deere aforementioned it was laying slay more than than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to keep up fit.
Investors stressful to read how late the downturn could be Crataegus laevigata regard lessons from some other industriousness tied to world-wide trade good prices: mining equipment manufacturing.
Companies same Caterpillar INC. sawing machine a self-aggrandizing stick out in gross sales a few years cover when China-LED necessitate sent the Mary Leontyne Price of commercial enterprise commodities glide.
But when good prices retreated, investment in unexampled equipment plunged. Level today -- with mine output convalescent along with cop and press ore prices -- Caterpillar says sales to the diligence keep to break down as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that grow machinery gross sales could ache for long time - regular if metric grain prices resile because of unfit weather or early changes in append.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities analyst at the Golub Group, a Calif. investing unfaltering that lately took a stake 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 extend to clump to showrooms lured by what Grade Nelson, who grows corn, soybeans and wheat berry on 2,000 demesne in Kansas, Bokep characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Lord Nelson traded in his John Deere blend with 1,000 hours on it for one with scarce 400 hours on it. The divergence in Mary Leontyne Price betwixt the deuce machines was fair complete $100,000 - and the trader offered to bestow Lord Nelson that center interest-unblock 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. (Editing by Saint David Greising and Tomasz Janowski)
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