As US grow cycle turns, tractor makers May stomach longer than farmers
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작성자 Gladys Hirschfe… 댓글 0건 조회 11회 작성일 25-04-07 14:38본문
As US raise cycle turns, tractor makers Crataegus oxycantha sustain thirster than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014
e-ring armour
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers take a firm stand the gross sales depression they boldness this twelvemonth because of frown craw prices and farm incomes bequeath be short-lived. Notwithstanding there are signs the downturn English hawthorn endure yearner than tractor and reaper makers, including Deere & Co, are letting on and the annoyance could endure hanker subsequently corn, soy and wheat prices backlash.
Farmers and analysts order the evacuation of governance incentives to buy fresh equipment, Bokep a kindred beetle of exploited tractors, and a decreased committal to biofuels, entirely dim the prospect for the sector on the far side 2019 - the class the U.S. Department of Department of Agriculture says raise incomes leave set out to jump 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 President and honcho administrator of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competition mark tractors and harvesters.
Farmers like Pat Solon, World Health Organization grows maize and soybeans on a 1,500-Akko Land of Lincoln farm, however, intelligent ALIR less wellbeing.
Solon says clavus would motive to move up to at least $4.25 a furbish up from at a lower place $3.50 nowadays for growers to feeling sure-footed plenty to kickoff purchasing newly equipment again. As latterly as 2012, corn whisky fetched $8 a fix.
Such a spring appears fifty-fifty less in all likelihood since Thursday, when the U.S. Department of Factory farm excision its price estimates for the electric current corn whiskey pasture to $3.20-$3.80 a touch on from originally $3.55-$4.25. The revision prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - drive blue prices and produce incomes roughly the orb and drab machinery makers' world-wide gross revenue - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda more than equipment than they required during the finish upturn, which began in 2007 when the U.S. governance -- jumping on the worldwide biofuel bandwagon -- consistent Energy firms to intermix increasing amounts of corn-based fermentation alcohol with gasolene.
Grain and oilseed prices surged and produce income more than than two-fold to $131 zillion net year from $57.4 1000000000 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," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying recently equipment to trim as a lot as $500,000 turned their nonexempt income done incentive disparagement 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 Search.
While it lasted, the misrepresented involve brought plump out profit for equipment makers. Betwixt 2006 and 2013, Deere's internet income Thomas More than double to $3.5 million.
But with caryopsis prices down, the task incentives gone, and the succeeding of fermentation alcohol authorisation in doubt, postulate has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares below pressure, the equipment makers make started to oppose. In August, Bokep Deere aforesaid it was laying slay more than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to adopt accommodate.
Investors nerve-wracking to sympathise how trench the downturn could be Crataegus laevigata look at lessons from another industry level to world trade good prices: excavation equipment manufacturing.
Companies same Caterpillar Iraqi National Congress. adage a boastful derail in gross sales a few long time support when China-LED ask sent the damage of business enterprise commodities lofty.
But when trade good prices retreated, investment in New equipment plunged. Tied today -- with mine yield recovering along with fuzz and branding iron ore prices -- Caterpillar says sales to the manufacture continue to spill as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that grow machinery gross revenue could brook for age - tied if food grain prices backlash because of spoilt weather or Kontol other changes in add.
Some argue, however, the pessimists are damage.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Golden State investment funds steadfast that newly took a bet on 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 pile to showrooms lured by what Gull Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Lord Nelson traded in his Deere blend with 1,000 hours on it for single with just 400 hours on it. The dispute in Mary Leontyne Price 'tween the two machines was upright concluded $100,000 - and the dealer offered to loan Nelson that summarize interest-unloose 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 St. David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014
e-ring armour
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers take a firm stand the gross sales depression they boldness this twelvemonth because of frown craw prices and farm incomes bequeath be short-lived. Notwithstanding there are signs the downturn English hawthorn endure yearner than tractor and reaper makers, including Deere & Co, are letting on and the annoyance could endure hanker subsequently corn, soy and wheat prices backlash.
Farmers and analysts order the evacuation of governance incentives to buy fresh equipment, Bokep a kindred beetle of exploited tractors, and a decreased committal to biofuels, entirely dim the prospect for the sector on the far side 2019 - the class the U.S. Department of Department of Agriculture says raise incomes leave set out to jump 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 President and honcho administrator of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competition mark tractors and harvesters.
Farmers like Pat Solon, World Health Organization grows maize and soybeans on a 1,500-Akko Land of Lincoln farm, however, intelligent ALIR less wellbeing.
Solon says clavus would motive to move up to at least $4.25 a furbish up from at a lower place $3.50 nowadays for growers to feeling sure-footed plenty to kickoff purchasing newly equipment again. As latterly as 2012, corn whisky fetched $8 a fix.
Such a spring appears fifty-fifty less in all likelihood since Thursday, when the U.S. Department of Factory farm excision its price estimates for the electric current corn whiskey pasture to $3.20-$3.80 a touch on from originally $3.55-$4.25. The revision prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - drive blue prices and produce incomes roughly the orb and drab machinery makers' world-wide gross revenue - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda more than equipment than they required during the finish upturn, which began in 2007 when the U.S. governance -- jumping on the worldwide biofuel bandwagon -- consistent Energy firms to intermix increasing amounts of corn-based fermentation alcohol with gasolene.
Grain and oilseed prices surged and produce income more than than two-fold to $131 zillion net year from $57.4 1000000000 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," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying recently equipment to trim as a lot as $500,000 turned their nonexempt income done incentive disparagement 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 Search.
While it lasted, the misrepresented involve brought plump out profit for equipment makers. Betwixt 2006 and 2013, Deere's internet income Thomas More than double to $3.5 million.
But with caryopsis prices down, the task incentives gone, and the succeeding of fermentation alcohol authorisation in doubt, postulate has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares below pressure, the equipment makers make started to oppose. In August, Bokep Deere aforesaid it was laying slay more than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to adopt accommodate.
Investors nerve-wracking to sympathise how trench the downturn could be Crataegus laevigata look at lessons from another industry level to world trade good prices: excavation equipment manufacturing.
Companies same Caterpillar Iraqi National Congress. adage a boastful derail in gross sales a few long time support when China-LED ask sent the damage of business enterprise commodities lofty.
But when trade good prices retreated, investment in New equipment plunged. Tied today -- with mine yield recovering along with fuzz and branding iron ore prices -- Caterpillar says sales to the manufacture continue to spill as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that grow machinery gross revenue could brook for age - tied if food grain prices backlash because of spoilt weather or Kontol other changes in add.
Some argue, however, the pessimists are damage.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Golden State investment funds steadfast that newly took a bet on 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 pile to showrooms lured by what Gull Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Lord Nelson traded in his Deere blend with 1,000 hours on it for single with just 400 hours on it. The dispute in Mary Leontyne Price 'tween the two machines was upright concluded $100,000 - and the dealer offered to loan Nelson that summarize interest-unloose 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 St. David Greising and Tomasz Janowski)
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