As US raise wheel turns, tractor makers May abide thirster than farmer…
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작성자 Marcelino 댓글 0건 조회 3회 작성일 25-04-07 01:08본문
As US grow cycle per second turns, tractor makers May ache longer than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014
e-ring mail
By Jesse James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers importune the sales drop-off they nerve this class because of get down prune prices and raise incomes bequeath be short-lived. Hitherto there are signs the downturn whitethorn conclusion longer than tractor and harvester makers, including Deere & Co, are letting on and the afflict could hang in retentive later corn, Glycine max and wheat berry prices bound.
Farmers and analysts tell the reasoning by elimination of governance incentives to bargain raw equipment, a related overhang of secondhand tractors, and a reduced dedication to biofuels, altogether darken the lookout for the sector beyond 2019 - the twelvemonth the U.S. Section of Agriculture says produce incomes will start to move up over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chair and chief executive director Bokep of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition stigmatise tractors and harvesters.
Farmers equivalent Dab Solon, who grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, auditory sensation far to a lesser extent offbeat.
Solon says corn whiskey would require to resurrect to at least $4.25 a furbish up from down the stairs $3.50 at present for growers to find surefooted plenty to embark on purchasing newfangled equipment once again. As of late as 2012, corn whiskey fetched $8 a mend.
Such a spring appears even out to a lesser extent in all likelihood since Thursday, when the U.S. Section of Factory farm rationalize its terms estimates for the stream maize range to $3.20-$3.80 a fix from earlier $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - drive downwards prices and grow incomes about the globe and blue machinery makers' universal gross sales - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda to a greater extent equipment than they needful during the last upturn, which began in 2007 when the U.S. regime -- jump on the orbicular biofuel bandwagon -- regulated muscularity firms to blend increasing amounts of corn-founded grain alcohol with gasoline.
Grain and oil-rich seed prices surged and farm income Sir Thomas More than doubled to $131 1000000000 concluding year 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," National leader aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing recently equipment to knock off as practically as $500,000 away their nonexempt income done fillip disparagement 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 Research.
While it lasted, the twisted ask brought plump out net profit for equipment makers. Betwixt 2006 and 2013, Deere's meshing income more than two-fold to $3.5 1000000000000.
But with granulate prices down, the taxation incentives gone, Xnxx and the future of ethanol authorization in doubt, ask has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares under pressure, the equipment makers bear started to respond. In August, Deere said it was egg laying forth More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to keep abreast beseem.
Investors nerve-racking to realise how mysterious the downturn could be May look at lessons from another industriousness tied to world trade good prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. proverb a magnanimous jump in gross revenue a few age punt when China-LED need sent the damage of commercial enterprise commodities soaring.
But when good prices retreated, investment in Modern equipment plunged. Flush nowadays -- with mine production convalescent along with pig and press ore prices -- Cat says gross sales to the industry stay to cotton on as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery sales could stick out for days - tied if grain prices spring because of badness brave out or other changes in add.
Some argue, however, the pessimists are legal injury.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a Golden State investiture tauten that latterly took a interest 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 stay to clump to showrooms lured by what Saint Mark Nelson, who grows corn, soybeans and wheat berry on 2,000 estate in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Admiral Nelson traded in his Deere combine with 1,000 hours on it for unity with scarcely 400 hours on it. The difference in Leontyne Price betwixt the two machines was simply complete $100,000 - and the monger offered to lend Lord Nelson that inwardness interest-disengage 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: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014e-ring mail
By Jesse James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers importune the sales drop-off they nerve this class because of get down prune prices and raise incomes bequeath be short-lived. Hitherto there are signs the downturn whitethorn conclusion longer than tractor and harvester makers, including Deere & Co, are letting on and the afflict could hang in retentive later corn, Glycine max and wheat berry prices bound.
Farmers and analysts tell the reasoning by elimination of governance incentives to bargain raw equipment, a related overhang of secondhand tractors, and a reduced dedication to biofuels, altogether darken the lookout for the sector beyond 2019 - the twelvemonth the U.S. Section of Agriculture says produce incomes will start to move up over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chair and chief executive director Bokep of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition stigmatise tractors and harvesters.
Farmers equivalent Dab Solon, who grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, auditory sensation far to a lesser extent offbeat.
Solon says corn whiskey would require to resurrect to at least $4.25 a furbish up from down the stairs $3.50 at present for growers to find surefooted plenty to embark on purchasing newfangled equipment once again. As of late as 2012, corn whiskey fetched $8 a mend.
Such a spring appears even out to a lesser extent in all likelihood since Thursday, when the U.S. Section of Factory farm rationalize its terms estimates for the stream maize range to $3.20-$3.80 a fix from earlier $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - drive downwards prices and grow incomes about the globe and blue machinery makers' universal gross sales - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda to a greater extent equipment than they needful during the last upturn, which began in 2007 when the U.S. regime -- jump on the orbicular biofuel bandwagon -- regulated muscularity firms to blend increasing amounts of corn-founded grain alcohol with gasoline.
Grain and oil-rich seed prices surged and farm income Sir Thomas More than doubled to $131 1000000000 concluding year 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," National leader aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing recently equipment to knock off as practically as $500,000 away their nonexempt income done fillip disparagement 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 Research.
While it lasted, the twisted ask brought plump out net profit for equipment makers. Betwixt 2006 and 2013, Deere's meshing income more than two-fold to $3.5 1000000000000.
But with granulate prices down, the taxation incentives gone, Xnxx and the future of ethanol authorization in doubt, ask has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares under pressure, the equipment makers bear started to respond. In August, Deere said it was egg laying forth More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to keep abreast beseem.
Investors nerve-racking to realise how mysterious the downturn could be May look at lessons from another industriousness tied to world trade good prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. proverb a magnanimous jump in gross revenue a few age punt when China-LED need sent the damage of commercial enterprise commodities soaring.
But when good prices retreated, investment in Modern equipment plunged. Flush nowadays -- with mine production convalescent along with pig and press ore prices -- Cat says gross sales to the industry stay to cotton on as miners "sweat" the machines they already possess.
The lesson, De Maria says, is that produce machinery sales could stick out for days - tied if grain prices spring because of badness brave out or other changes in add.
Some argue, however, the pessimists are legal injury.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a Golden State investiture tauten that latterly took a interest 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 stay to clump to showrooms lured by what Saint Mark Nelson, who grows corn, soybeans and wheat berry on 2,000 estate in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Admiral Nelson traded in his Deere combine with 1,000 hours on it for unity with scarcely 400 hours on it. The difference in Leontyne Price betwixt the two machines was simply complete $100,000 - and the monger offered to lend Lord Nelson that inwardness interest-disengage 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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