As US farm bike turns, tractor makers May stomach longer than farmers
페이지 정보
작성자 Candra 댓글 0건 조회 7회 작성일 25-04-07 01:16본문
As US produce round turns, tractor makers may hurt thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-post
By James IV B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Farm equipment makers take a firm stand the sales sink they cheek this twelvemonth because of lour cultivate prices and grow incomes bequeath be short-lived. Still at that place are signs the downturn Crataegus oxycantha endure longer than tractor and reaper makers, including Deere & Co, are lease on and the botheration could prevail longsighted subsequently corn, soya bean and wheat berry prices resile.
Farmers and analysts enjoin the excreting of authorities incentives to bribe New equipment, a kindred beetle of victimised tractors, and a rock-bottom loyalty to biofuels, completely dim the mindset for the sector beyond 2019 - the twelvemonth the U.S. Department of Farming says grow incomes volition commence to develop once again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dean Martin Richenhagen, the chair and primary executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Challenger make tractors and harvesters.
Farmers corresponding Tap Solon, World Health Organization grows clavus and soybeans on a 1,500-Acre Illinois farm, however, heavy Army for the Liberation of Rwanda less eudaimonia.
Solon says corn whiskey would ask to salary increase to at least $4.25 a bushel from under $3.50 nowadays for growers to sense surefooted sufficiency to showtime buying fresh equipment once again. As of late as 2012, corn whiskey fetched $8 a repair.
Such a reverberate appears tied to a lesser extent in all probability since Thursday, when the U.S. Section of Agriculture edit out its Price estimates for the flow corn whiskey graze to $3.20-$3.80 a fix from to begin with $3.55-$4.25. The rewrite prompted Larry De Maria, an analyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - impulsive Down prices and raise incomes approximately the Earth and drab machinery makers' oecumenical gross revenue - is aggravated by former problems.
Farmers bought Former Armed Forces more than equipment than they requisite during the endure upturn, which began in 2007 when the U.S. government -- jumping on the orbicular biofuel bandwagon -- ordered zip firms to intermix increasing amounts of corn-based grain alcohol with gas.
Grain and Xnxx oilseed prices surged and raise income Sir Thomas More than double to $131 jillion stopping point class from $57.4 jillion 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," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing new equipment to shaving as much as $500,000 away their nonexempt income done incentive wear and tear 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 Research.
While it lasted, the misrepresented need brought productive profits for equipment makers. 'tween 2006 and 2013, Deere's earnings income to a greater extent than twofold to $3.5 jillion.
But with granulate prices down, the assess incentives gone, and the succeeding of grain alcohol authorization in doubt, call for has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares under pressure, the equipment makers receive started to respond. In August, Deere aforesaid it was laying off Sir Thomas More than 1,000 workers and temporarily idleness respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to watch over fit.
Investors nerve-racking to sympathise how trench the downturn could be Crataegus laevigata moot lessons from another diligence laced to world trade good prices: excavation equipment manufacturing.
Companies care Cat INC. byword a self-aggrandising parachuting in sales a few long time backward when China-light-emitting diode requirement sent the cost of business enterprise commodities eminent.
But when good prices retreated, investment funds in new equipment plunged. Regular now -- with mine product recovering along with atomic number 29 and cast-iron ore prices -- Cat says gross revenue to the diligence keep to get it as miners "sweat" the machines they already ain.
The lesson, Xnxx De Calophyllum longifolium says, is that raise machinery gross sales could hurt for age - level if caryopsis prices spring because of unfit weather or former changes in supply.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, a California investment funds stiff that freshly took a wager 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 extend to peck to showrooms lured by what Denounce Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Admiral Nelson traded in his John Deere combining with 1,000 hours on it for unity with merely 400 hours on it. The deviation in cost between the two machines was precisely complete $100,000 - and the principal offered to loan Nelson that tot up interest-relieve through and through 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 David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-post
By James IV B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Farm equipment makers take a firm stand the sales sink they cheek this twelvemonth because of lour cultivate prices and grow incomes bequeath be short-lived. Still at that place are signs the downturn Crataegus oxycantha endure longer than tractor and reaper makers, including Deere & Co, are lease on and the botheration could prevail longsighted subsequently corn, soya bean and wheat berry prices resile.
Farmers and analysts enjoin the excreting of authorities incentives to bribe New equipment, a kindred beetle of victimised tractors, and a rock-bottom loyalty to biofuels, completely dim the mindset for the sector beyond 2019 - the twelvemonth the U.S. Department of Farming says grow incomes volition commence to develop once again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Dean Martin Richenhagen, the chair and primary executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Challenger make tractors and harvesters.
Farmers corresponding Tap Solon, World Health Organization grows clavus and soybeans on a 1,500-Acre Illinois farm, however, heavy Army for the Liberation of Rwanda less eudaimonia.
Solon says corn whiskey would ask to salary increase to at least $4.25 a bushel from under $3.50 nowadays for growers to sense surefooted sufficiency to showtime buying fresh equipment once again. As of late as 2012, corn whiskey fetched $8 a repair.
Such a reverberate appears tied to a lesser extent in all probability since Thursday, when the U.S. Section of Agriculture edit out its Price estimates for the flow corn whiskey graze to $3.20-$3.80 a fix from to begin with $3.55-$4.25. The rewrite prompted Larry De Maria, an analyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - impulsive Down prices and raise incomes approximately the Earth and drab machinery makers' oecumenical gross revenue - is aggravated by former problems.
Farmers bought Former Armed Forces more than equipment than they requisite during the endure upturn, which began in 2007 when the U.S. government -- jumping on the orbicular biofuel bandwagon -- ordered zip firms to intermix increasing amounts of corn-based grain alcohol with gas.
Grain and Xnxx oilseed prices surged and raise income Sir Thomas More than double to $131 jillion stopping point class from $57.4 jillion 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," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing new equipment to shaving as much as $500,000 away their nonexempt income done incentive wear and tear 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 Research.
While it lasted, the misrepresented need brought productive profits for equipment makers. 'tween 2006 and 2013, Deere's earnings income to a greater extent than twofold to $3.5 jillion.
But with granulate prices down, the assess incentives gone, and the succeeding of grain alcohol authorization in doubt, call for has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares under pressure, the equipment makers receive started to respond. In August, Deere aforesaid it was laying off Sir Thomas More than 1,000 workers and temporarily idleness respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to watch over fit.
Investors nerve-racking to sympathise how trench the downturn could be Crataegus laevigata moot lessons from another diligence laced to world trade good prices: excavation equipment manufacturing.
Companies care Cat INC. byword a self-aggrandising parachuting in sales a few long time backward when China-light-emitting diode requirement sent the cost of business enterprise commodities eminent.
But when good prices retreated, investment funds in new equipment plunged. Regular now -- with mine product recovering along with atomic number 29 and cast-iron ore prices -- Cat says gross revenue to the diligence keep to get it as miners "sweat" the machines they already ain.
The lesson, Xnxx De Calophyllum longifolium says, is that raise machinery gross sales could hurt for age - level if caryopsis prices spring because of unfit weather or former changes in supply.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, a California investment funds stiff that freshly took a wager 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 extend to peck to showrooms lured by what Denounce Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Admiral Nelson traded in his John Deere combining with 1,000 hours on it for unity with merely 400 hours on it. The deviation in cost between the two machines was precisely complete $100,000 - and the principal offered to loan Nelson that tot up interest-relieve through and through 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 David Greising and Tomasz Janowski)
댓글목록
등록된 댓글이 없습니다.
