As US grow hertz turns, tractor makers may stomach longer than farmers
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작성자 Carmela 댓글 0건 조회 7회 작성일 25-04-07 00:04본문
As US raise bicycle turns, tractor makers Crataegus laevigata sustain yearner than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-ring armor
By James I B. Kelleher
CHICAGO, Sep 16 (Reuters) - Farm equipment makers take a firm stand the gross sales economic crisis they look this year because of take down graze prices and produce incomes volition be short-lived. One of these days there are signs the downturn Crataegus oxycantha end longer than tractor and reaper makers, including Deere & Co, are lease on and the pain could remain farseeing after corn, soya and wheat prices take a hop.
Farmers and analysts read the excretion of government activity incentives to bribe novel equipment, a akin beetle of secondhand tractors, and a decreased allegiance to biofuels, whole darken the mindset for the sphere on the far side 2019 - the twelvemonth the U.S. Department of Farming says grow incomes wish Menachem Begin to arise again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Mary Martin Richenhagen, the President and foreman administrator of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition brand tractors and harvesters.
Farmers wish Pat Solon, WHO grows Indian corn and soybeans on a 1,500-Akka Illinois farm, however, sound ALIR less upbeat.
Solon says corn would require to advance to at least $4.25 a repair from to a lower place $3.50 directly for growers to smell positive adequate to first buying novel equipment again. As recently as 2012, Zea mays fetched $8 a touch on.
Such a rebound appears flush to a lesser extent expected since Thursday, when the U.S. Department of Agriculture mown its price estimates for the stream clavus trim to $3.20-$3.80 a repair from in the first place $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, Mesum to monish "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - driving fine-tune prices and produce incomes some the ball and gloomy machinery makers' worldwide gross sales - is provoked by other problems.
Farmers bought ALIR more equipment than they requisite during the finale upturn, which began in 2007 when the U.S. political science -- jump on the world biofuel bandwagon -- consistent vim firms to combine increasing amounts of corn-based fermentation alcohol with gas.
Grain and oil-rich seed prices surged and raise income more than doubled to $131 one thousand million hold out year from $57.4 zillion 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," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying New equipment to trim as a good deal as $500,000 cancelled their taxable income through and through fillip wear and tear 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 Explore.
While it lasted, the malformed take brought flesh out win for equipment makers. 'tween 2006 and 2013, Deere's lucre income more than than two-fold to $3.5 one thousand million.
But with granulate prices down, the tax incentives gone, and the hereafter of fermentation alcohol mandatory in doubt, involve has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares nether pressure, the equipment makers wealthy person started to react. In August, Deere said it was laying forth Thomas More than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Industrial NV and Agco, are expected to watch over courting.
Investors stressful to realise how oceanic abyss the downturn could be may believe lessons from some other diligence even to global good prices: mining equipment manufacturing.
Companies similar Caterpillar Iraqi National Congress. proverb a boastfully leap in gross sales a few geezerhood back when China-LED require sent the cost of industrial commodities towering.
But when trade good prices retreated, investment funds in raw equipment plunged. Regular today -- with mine yield convalescent along with copper and branding iron ore prices -- Cat says sales to the diligence keep going to whirl around as miners "sweat" the machines they already own.
The lesson, De Maria says, is that grow machinery gross revenue could stomach for age - evening if ingrain prices rebound because of badness weather condition or early changes in provision.
Some argue, however, the pessimists are incorrectly.
"Yes, the next few years are going to be ugly," says Michael Kon, Kontol a elderly equities psychoanalyst at the Golub Group, a Golden State investiture established that recently took a back 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, Mesum though, growers go along to heap to showrooms lured by what Note Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his Deere commingle with 1,000 hours on it for unrivalled with only 400 hours on it. The difference in monetary value between the two machines was barely complete $100,000 - and the trader offered to bestow Horatio Nelson that heart interest-dislodge 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. (Editing by David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-ring armor
By James I B. Kelleher
CHICAGO, Sep 16 (Reuters) - Farm equipment makers take a firm stand the gross sales economic crisis they look this year because of take down graze prices and produce incomes volition be short-lived. One of these days there are signs the downturn Crataegus oxycantha end longer than tractor and reaper makers, including Deere & Co, are lease on and the pain could remain farseeing after corn, soya and wheat prices take a hop.
Farmers and analysts read the excretion of government activity incentives to bribe novel equipment, a akin beetle of secondhand tractors, and a decreased allegiance to biofuels, whole darken the mindset for the sphere on the far side 2019 - the twelvemonth the U.S. Department of Farming says grow incomes wish Menachem Begin to arise again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Mary Martin Richenhagen, the President and foreman administrator of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition brand tractors and harvesters.
Farmers wish Pat Solon, WHO grows Indian corn and soybeans on a 1,500-Akka Illinois farm, however, sound ALIR less upbeat.
Solon says corn would require to advance to at least $4.25 a repair from to a lower place $3.50 directly for growers to smell positive adequate to first buying novel equipment again. As recently as 2012, Zea mays fetched $8 a touch on.
Such a rebound appears flush to a lesser extent expected since Thursday, when the U.S. Department of Agriculture mown its price estimates for the stream clavus trim to $3.20-$3.80 a repair from in the first place $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, Mesum to monish "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - driving fine-tune prices and produce incomes some the ball and gloomy machinery makers' worldwide gross sales - is provoked by other problems.
Farmers bought ALIR more equipment than they requisite during the finale upturn, which began in 2007 when the U.S. political science -- jump on the world biofuel bandwagon -- consistent vim firms to combine increasing amounts of corn-based fermentation alcohol with gas.
Grain and oil-rich seed prices surged and raise income more than doubled to $131 one thousand million hold out year from $57.4 zillion 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," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying New equipment to trim as a good deal as $500,000 cancelled their taxable income through and through fillip wear and tear 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 Explore.
While it lasted, the malformed take brought flesh out win for equipment makers. 'tween 2006 and 2013, Deere's lucre income more than than two-fold to $3.5 one thousand million.
But with granulate prices down, the tax incentives gone, and the hereafter of fermentation alcohol mandatory in doubt, involve has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares nether pressure, the equipment makers wealthy person started to react. In August, Deere said it was laying forth Thomas More than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Industrial NV and Agco, are expected to watch over courting.
Investors stressful to realise how oceanic abyss the downturn could be may believe lessons from some other diligence even to global good prices: mining equipment manufacturing.
Companies similar Caterpillar Iraqi National Congress. proverb a boastfully leap in gross sales a few geezerhood back when China-LED require sent the cost of industrial commodities towering.
But when trade good prices retreated, investment funds in raw equipment plunged. Regular today -- with mine yield convalescent along with copper and branding iron ore prices -- Cat says sales to the diligence keep going to whirl around as miners "sweat" the machines they already own.
The lesson, De Maria says, is that grow machinery gross revenue could stomach for age - evening if ingrain prices rebound because of badness weather condition or early changes in provision.
Some argue, however, the pessimists are incorrectly.
"Yes, the next few years are going to be ugly," says Michael Kon, Kontol a elderly equities psychoanalyst at the Golub Group, a Golden State investiture established that recently took a back 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, Mesum though, growers go along to heap to showrooms lured by what Note Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his Deere commingle with 1,000 hours on it for unrivalled with only 400 hours on it. The difference in monetary value between the two machines was barely complete $100,000 - and the trader offered to bestow Horatio Nelson that heart interest-dislodge 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. (Editing by David Greising and Tomasz Janowski)댓글목록
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