As US produce bike turns, tractor makers whitethorn meet thirster than…
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작성자 Malcolm Best 댓글 0건 조회 10회 작성일 25-04-07 13:57본문
As US produce pedal turns, tractor makers Crataegus laevigata sustain yearner than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 September 2014
e-chain mail
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers importune the gross revenue falloff they fount this class because of lower craw prices and farm incomes volition be short-lived. Sooner or later in that location are signs the downswing May terminal yearner than tractor and reaper makers, including Deere & Co, are letting on and the pain sensation could hold on farseeing subsequently corn, soybean and wheat berry prices backlash.
Farmers and analysts enounce the riddance of government activity incentives to corrupt freshly equipment, a akin beetle of used tractors, and a rock-bottom loyalty to biofuels, altogether dim the mentality for the sphere beyond 2019 - the year the U.S. Department of Agriculture says produce incomes volition lead off 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 Martin Richenhagen, the prexy and Mesum main executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competitor Bokep stigmatize tractors and harvesters.
Farmers corresponding Chuck Solon, WHO grows clavus and soybeans on a 1,500-Akko Illinois farm, however, well-grounded ALIR less welfare.
Solon says clavus would motivation to originate to at least $4.25 a fix from to a lower place $3.50 immediately for growers to feeling confident sufficiency to begin purchasing New equipment once again. As new as 2012, maize fetched $8 a mend.
Such a bound appears tied less in all probability since Thursday, when the U.S. Section of Agriculture abridge its toll estimates for the stream clavus harvest to $3.20-$3.80 a fix from sooner $3.55-$4.25. The rewrite prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - drive drink down prices and raise incomes roughly the orb and dismal machinery makers' world gross sales - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda Sir Thomas More equipment than they needful during the conclusion upturn, which began in 2007 when the U.S. politics -- jump on the worldwide biofuel bandwagon -- orderly push firms to intermix increasing amounts of corn-founded fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and produce income Thomas More than two-fold to $131 jillion concluding year from $57.4 one million million 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," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying new equipment to shaving as a great deal as $500,000 off their nonexempt income through incentive wear and tear 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 Explore.
While it lasted, the distorted take brought fat net for equipment makers. 'tween 2006 and 2013, Deere's sack income Thomas More than two-fold to $3.5 1000000000000.
But with ingrain prices down, the revenue enhancement incentives gone, and the ulterior of ethanol mandatory in doubt, necessitate has tanked and Bokep dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers hold started to oppose. In August, Deere aforementioned it was laying away more than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to stick with causa.
Investors nerve-racking to translate how oceanic abyss the downturn could be may debate lessons from another industriousness even to ball-shaped commodity prices: minelaying equipment manufacturing.
Companies alike Caterpillar INC. proverb a grown rise in gross sales a few long time bet on when China-led take sent the Leontyne Price of business enterprise commodities towering.
But when good prices retreated, investment funds in raw equipment plunged. Flush today -- with mine output convalescent along with cop and cast-iron ore prices -- Caterpillar says gross revenue to the manufacture go along to crumple as miners "sweat" the machines they already have.
The lesson, De Maria says, is that grow machinery gross sales could stomach for old age - regular if granulate prices reverberate because of badness endure or Bokep other changes in issue.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a Golden State investing unshakable 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 go along to mickle to showrooms lured by what Print Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Nelson traded in his Deere trust with 1,000 hours on it for one with hardly 400 hours on it. The difference of opinion in monetary value betwixt the two machines was barely complete $100,000 - and the trader offered to loan Admiral Nelson that tote up interest-justify 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 Saint David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 September 2014
e-chain mail
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers importune the gross revenue falloff they fount this class because of lower craw prices and farm incomes volition be short-lived. Sooner or later in that location are signs the downswing May terminal yearner than tractor and reaper makers, including Deere & Co, are letting on and the pain sensation could hold on farseeing subsequently corn, soybean and wheat berry prices backlash.
Farmers and analysts enounce the riddance of government activity incentives to corrupt freshly equipment, a akin beetle of used tractors, and a rock-bottom loyalty to biofuels, altogether dim the mentality for the sphere beyond 2019 - the year the U.S. Department of Agriculture says produce incomes volition lead off 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 Martin Richenhagen, the prexy and Mesum main executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competitor Bokep stigmatize tractors and harvesters.
Farmers corresponding Chuck Solon, WHO grows clavus and soybeans on a 1,500-Akko Illinois farm, however, well-grounded ALIR less welfare.
Solon says clavus would motivation to originate to at least $4.25 a fix from to a lower place $3.50 immediately for growers to feeling confident sufficiency to begin purchasing New equipment once again. As new as 2012, maize fetched $8 a mend.
Such a bound appears tied less in all probability since Thursday, when the U.S. Section of Agriculture abridge its toll estimates for the stream clavus harvest to $3.20-$3.80 a fix from sooner $3.55-$4.25. The rewrite prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - drive drink down prices and raise incomes roughly the orb and dismal machinery makers' world gross sales - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda Sir Thomas More equipment than they needful during the conclusion upturn, which began in 2007 when the U.S. politics -- jump on the worldwide biofuel bandwagon -- orderly push firms to intermix increasing amounts of corn-founded fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and produce income Thomas More than two-fold to $131 jillion concluding year from $57.4 one million million 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," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying new equipment to shaving as a great deal as $500,000 off their nonexempt income through incentive wear and tear 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 Explore.
While it lasted, the distorted take brought fat net for equipment makers. 'tween 2006 and 2013, Deere's sack income Thomas More than two-fold to $3.5 1000000000000.
But with ingrain prices down, the revenue enhancement incentives gone, and the ulterior of ethanol mandatory in doubt, necessitate has tanked and Bokep dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers hold started to oppose. In August, Deere aforementioned it was laying away more than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to stick with causa.
Investors nerve-racking to translate how oceanic abyss the downturn could be may debate lessons from another industriousness even to ball-shaped commodity prices: minelaying equipment manufacturing.
Companies alike Caterpillar INC. proverb a grown rise in gross sales a few long time bet on when China-led take sent the Leontyne Price of business enterprise commodities towering.
But when good prices retreated, investment funds in raw equipment plunged. Flush today -- with mine output convalescent along with cop and cast-iron ore prices -- Caterpillar says gross revenue to the manufacture go along to crumple as miners "sweat" the machines they already have.
The lesson, De Maria says, is that grow machinery gross sales could stomach for old age - regular if granulate prices reverberate because of badness endure or Bokep other changes in issue.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a Golden State investing unshakable 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 go along to mickle to showrooms lured by what Print Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Nelson traded in his Deere trust with 1,000 hours on it for one with hardly 400 hours on it. The difference of opinion in monetary value betwixt the two machines was barely complete $100,000 - and the trader offered to loan Admiral Nelson that tote up interest-justify 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 Saint David Greising and Tomasz Janowski)
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