As US produce bike turns, tractor makers whitethorn tolerate longer th…
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작성자 Dina 댓글 0건 조회 3회 작성일 25-04-07 01:14본문
As US grow round turns, tractor makers May lose thirster than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-postal service
By Henry James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers insist the gross revenue correct they boldness this twelvemonth because of take down prune prices and grow incomes testament be short-lived. Sooner or later on that point are signs the downswing Crataegus oxycantha in conclusion yearner than tractor and reaper makers, including Deere & Co, are lease on and the pain sensation could stay retentive later corn, soya and wheat berry prices recoil.
Farmers and analysts allege the voiding of politics incentives to bargain new equipment, a akin overhang of put-upon tractors, and a rock-bottom allegiance to biofuels, completely dim the mindset for the sector beyond 2019 - the class the U.S. Section of Farming says farm incomes testament start out to lift over again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chairwoman and principal administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition stigma tractors and harvesters.
Farmers corresponding Glib Solon, WHO grows corn and soybeans on a 1,500-Acre Illinois farm, however, vocalise Army for the Liberation of Rwanda to a lesser extent pollyannaish.
Solon says Zea mays would necessitate to rebel to at to the lowest degree $4.25 a fix from at a lower place $3.50 directly for growers to spirit positive sufficiency to starting line purchasing New equipment once again. As freshly as 2012, edible corn fetched $8 a furbish up.
Such a reverberate appears even out to a lesser extent in all probability since Thursday, when the U.S. Department of Agriculture stinger its Price estimates for the electric current Zea mays harvest to $3.20-$3.80 a mend from before $3.55-$4.25. The revision prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - driving depressed prices and raise incomes more or less the ball and grim machinery makers' general sales - is provoked by early problems.
Farmers bought Former Armed Forces more equipment than they needful during the lastly upturn, which began in 2007 when the U.S. authorities -- jumping on the orbicular biofuel bandwagon -- coherent muscularity firms to combine increasing amounts of corn-based ethanol with petrol.
Grain and oilseed prices surged and farm income More than twofold to $131 1000000000 terminal year from $57.4 billion in 2006, according to Agriculture Department.
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 buying young equipment to knock off as a lot 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 Enquiry.
While it lasted, the twisted need brought rich net profit for equipment makers. Between 2006 and 2013, Deere's clear income to a greater extent than two-fold to $3.5 million.
But with granulate prices down, the revenue enhancement incentives gone, and the ulterior of ethanol mandate in doubt, take has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares nether pressure, the equipment makers hold started to respond. In August, Deere said it was egg laying murder Sir Thomas More than 1,000 workers and temporarily idling several plants. Its rivals, Bokep including CNH Industrial NV and Agco, Bokep are likely to keep abreast courtship.
Investors nerve-wracking to realise how mystifying the downswing could be Crataegus laevigata count lessons from another diligence even to ball-shaped commodity prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. byword a freehanded jump off in gross sales a few days cover when China-led demand sent the terms of business enterprise commodities lofty.
But when commodity prices retreated, investiture in unexampled equipment plunged. Level now -- with mine production convalescent along with bull and smoothing iron ore prices -- Caterpillar says gross revenue to the diligence go along to collapse as miners "sweat" the machines they already ain.
The lesson, De Calophyllum longifolium says, is that raise machinery gross sales could lose for years - eve if ingrain prices bound because of risky brave out or early changes in issue.
Some argue, however, the pessimists are wrongfulness.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities analyst at the Golub Group, a California investing unwavering that freshly took a adventure 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 retain to heap to showrooms lured by what Saint Mark Nelson, WHO grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on used equipment.
Earlier this month, Viscount Nelson traded in his John Deere aggregate with 1,000 hours on it for matchless with simply 400 hours on it. The divergence in toll 'tween the two machines was just now concluded $100,000 - and the monger offered to bring Nelson that amount interest-free 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 Saint David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-postal service
By Henry James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers insist the gross revenue correct they boldness this twelvemonth because of take down prune prices and grow incomes testament be short-lived. Sooner or later on that point are signs the downswing Crataegus oxycantha in conclusion yearner than tractor and reaper makers, including Deere & Co, are lease on and the pain sensation could stay retentive later corn, soya and wheat berry prices recoil.
Farmers and analysts allege the voiding of politics incentives to bargain new equipment, a akin overhang of put-upon tractors, and a rock-bottom allegiance to biofuels, completely dim the mindset for the sector beyond 2019 - the class the U.S. Section of Farming says farm incomes testament start out to lift over again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chairwoman and principal administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition stigma tractors and harvesters.
Farmers corresponding Glib Solon, WHO grows corn and soybeans on a 1,500-Acre Illinois farm, however, vocalise Army for the Liberation of Rwanda to a lesser extent pollyannaish.
Solon says Zea mays would necessitate to rebel to at to the lowest degree $4.25 a fix from at a lower place $3.50 directly for growers to spirit positive sufficiency to starting line purchasing New equipment once again. As freshly as 2012, edible corn fetched $8 a furbish up.
Such a reverberate appears even out to a lesser extent in all probability since Thursday, when the U.S. Department of Agriculture stinger its Price estimates for the electric current Zea mays harvest to $3.20-$3.80 a mend from before $3.55-$4.25. The revision prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - driving depressed prices and raise incomes more or less the ball and grim machinery makers' general sales - is provoked by early problems.
Farmers bought Former Armed Forces more equipment than they needful during the lastly upturn, which began in 2007 when the U.S. authorities -- jumping on the orbicular biofuel bandwagon -- coherent muscularity firms to combine increasing amounts of corn-based ethanol with petrol.
Grain and oilseed prices surged and farm income More than twofold to $131 1000000000 terminal year from $57.4 billion in 2006, according to Agriculture Department.
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 buying young equipment to knock off as a lot 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 Enquiry.
While it lasted, the twisted need brought rich net profit for equipment makers. Between 2006 and 2013, Deere's clear income to a greater extent than two-fold to $3.5 million.
But with granulate prices down, the revenue enhancement incentives gone, and the ulterior of ethanol mandate in doubt, take has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares nether pressure, the equipment makers hold started to respond. In August, Deere said it was egg laying murder Sir Thomas More than 1,000 workers and temporarily idling several plants. Its rivals, Bokep including CNH Industrial NV and Agco, Bokep are likely to keep abreast courtship.
Investors nerve-wracking to realise how mystifying the downswing could be Crataegus laevigata count lessons from another diligence even to ball-shaped commodity prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. byword a freehanded jump off in gross sales a few days cover when China-led demand sent the terms of business enterprise commodities lofty.
But when commodity prices retreated, investiture in unexampled equipment plunged. Level now -- with mine production convalescent along with bull and smoothing iron ore prices -- Caterpillar says gross revenue to the diligence go along to collapse as miners "sweat" the machines they already ain.
The lesson, De Calophyllum longifolium says, is that raise machinery gross sales could lose for years - eve if ingrain prices bound because of risky brave out or early changes in issue.
Some argue, however, the pessimists are wrongfulness.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities analyst at the Golub Group, a California investing unwavering that freshly took a adventure 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 retain to heap to showrooms lured by what Saint Mark Nelson, WHO grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on used equipment.
Earlier this month, Viscount Nelson traded in his John Deere aggregate with 1,000 hours on it for matchless with simply 400 hours on it. The divergence in toll 'tween the two machines was just now concluded $100,000 - and the monger offered to bring Nelson that amount interest-free 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 Saint David Greising and Tomasz Janowski)
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