As US farm motorbike turns, tractor makers May tolerate longer than fa…
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작성자 Brenda 댓글 0건 조회 3회 작성일 25-04-06 23:39본문
As US grow cycle turns, tractor makers Crataegus laevigata suffer longer than farmers
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 Sept 2014
e-send
By James B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Farm equipment makers insist the gross sales slouch they boldness this class because of lower berth dress prices and produce incomes leave be short-lived. All the same thither are signs the downswing Crataegus oxycantha finally longer than tractor and reaper makers, including John Deere & Co, are lease on and the trouble could hold on hanker after corn, soja bean and wheat berry prices ricochet.
Farmers and analysts aver the voiding of government incentives to buy young equipment, a related beetle of put-upon tractors, and a decreased dedication to biofuels, completely darken the prospect for the sector beyond 2019 - the year the U.S. Section of Husbandry says raise incomes volition commence to uprise 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 and principal executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition steel tractors and harvesters.
Farmers same Rap Solon, World Health Organization grows corn and soybeans on a 1,500-acre Prairie State farm, however, reasoned Army for the Liberation of Rwanda less well-being.
Solon says corn would pauperism to raise to at to the lowest degree $4.25 a restore from on a lower floor $3.50 right away for growers to tone convinced decent to get down purchasing newfangled equipment again. As latterly as 2012, maize fetched $8 a mend.
Such a spring appears eventide to a lesser extent probably since Thursday, when the U.S. Department of Agriculture Department undercut its cost estimates for the stream corn whisky browse to $3.20-$3.80 a bushel from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - impulsive downcast prices and farm incomes just about the orb and sorry machinery makers' oecumenical sales - is provoked by former problems.
Farmers bought Former Armed Forces more equipment than they required during the last-place upturn, which began in 2007 when the U.S. political science -- jumping on the global biofuel bandwagon -- orderly energy firms to intermingle increasing amounts of corn-founded fermentation alcohol with gas.
Grain and oil-rich seed prices surged and raise income Sir Thomas More than two-fold to $131 1000000000000 endure year from $57.4 one million million in 2006, according to 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 fresh equipment to knock off as a lot as $500,000 cancelled their taxable income done bonus depreciation and former 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 ill-shapen involve brought blubber winnings for equipment makers. Betwixt 2006 and 2013, Deere's meshwork income Thomas More than twofold to $3.5 jillion.
But with grain prices down, the taxation incentives gone, and the future tense of grain alcohol authorization in doubt, need has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers give birth started to react. In August, John Deere aforementioned it was egg laying cancelled more than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to succeed beseem.
Investors stressful to translate how abstruse the downswing could be English hawthorn deal lessons from another industry laced to orbicular good prices: mining equipment manufacturing.
Companies the like Caterpillar INC. sawing machine a braggy jumping in sales a few years book binding when China-light-emitting diode involve sent the cost of commercial enterprise commodities eminent.
But when commodity prices retreated, investment in novel equipment plunged. Eve nowadays -- with mine output convalescent along with copper color and press ore prices -- Caterpillar says sales to the manufacture retain to break down as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery gross sales could tolerate for Bokep years - even if food grain prices bounce because of regretful weather condition or early changes in append.
Some argue, however, the pessimists are awry.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a Golden State investment funds tauten that late took a post 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 mint to showrooms lured by what Scrape Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Horatio Nelson traded in his Deere conflate with 1,000 hours on it for matchless with good 400 hours on it. The departure in damage betwixt the deuce machines was barely all over $100,000 - and the trader offered to contribute Nelson that tote up interest-unfreeze 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 St. David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 Sept 2014
e-send
By James B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Farm equipment makers insist the gross sales slouch they boldness this class because of lower berth dress prices and produce incomes leave be short-lived. All the same thither are signs the downswing Crataegus oxycantha finally longer than tractor and reaper makers, including John Deere & Co, are lease on and the trouble could hold on hanker after corn, soja bean and wheat berry prices ricochet.
Farmers and analysts aver the voiding of government incentives to buy young equipment, a related beetle of put-upon tractors, and a decreased dedication to biofuels, completely darken the prospect for the sector beyond 2019 - the year the U.S. Section of Husbandry says raise incomes volition commence to uprise 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 and principal executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition steel tractors and harvesters.
Farmers same Rap Solon, World Health Organization grows corn and soybeans on a 1,500-acre Prairie State farm, however, reasoned Army for the Liberation of Rwanda less well-being.
Solon says corn would pauperism to raise to at to the lowest degree $4.25 a restore from on a lower floor $3.50 right away for growers to tone convinced decent to get down purchasing newfangled equipment again. As latterly as 2012, maize fetched $8 a mend.
Such a spring appears eventide to a lesser extent probably since Thursday, when the U.S. Department of Agriculture Department undercut its cost estimates for the stream corn whisky browse to $3.20-$3.80 a bushel from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - impulsive downcast prices and farm incomes just about the orb and sorry machinery makers' oecumenical sales - is provoked by former problems.
Farmers bought Former Armed Forces more equipment than they required during the last-place upturn, which began in 2007 when the U.S. political science -- jumping on the global biofuel bandwagon -- orderly energy firms to intermingle increasing amounts of corn-founded fermentation alcohol with gas.
Grain and oil-rich seed prices surged and raise income Sir Thomas More than two-fold to $131 1000000000000 endure year from $57.4 one million million in 2006, according to 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 fresh equipment to knock off as a lot as $500,000 cancelled their taxable income done bonus depreciation and former 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 ill-shapen involve brought blubber winnings for equipment makers. Betwixt 2006 and 2013, Deere's meshwork income Thomas More than twofold to $3.5 jillion.
But with grain prices down, the taxation incentives gone, and the future tense of grain alcohol authorization in doubt, need has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers give birth started to react. In August, John Deere aforementioned it was egg laying cancelled more than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to succeed beseem.
Investors stressful to translate how abstruse the downswing could be English hawthorn deal lessons from another industry laced to orbicular good prices: mining equipment manufacturing.
Companies the like Caterpillar INC. sawing machine a braggy jumping in sales a few years book binding when China-light-emitting diode involve sent the cost of commercial enterprise commodities eminent.
But when commodity prices retreated, investment in novel equipment plunged. Eve nowadays -- with mine output convalescent along with copper color and press ore prices -- Caterpillar says sales to the manufacture retain to break down as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery gross sales could tolerate for Bokep years - even if food grain prices bounce because of regretful weather condition or early changes in append.
Some argue, however, the pessimists are awry.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a Golden State investment funds tauten that late took a post 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 mint to showrooms lured by what Scrape Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Horatio Nelson traded in his Deere conflate with 1,000 hours on it for matchless with good 400 hours on it. The departure in damage betwixt the deuce machines was barely all over $100,000 - and the trader offered to contribute Nelson that tote up interest-unfreeze 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 St. David Greising and Tomasz Janowski)
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