As US produce pedal turns, tractor makers English hawthorn stomach thi…
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작성자 Malcolm Schweiz… 댓글 0건 조회 3회 작성일 25-04-07 15:23본문
As US grow bicycle turns, tractor makers May support thirster than farmers
By Reuters
Published: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 September 2014
e-ring armor
By James B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers importune the gross revenue depression they face up this twelvemonth because of take down prune prices and grow incomes testament be short-lived. In time on that point are signs the downturn whitethorn final longer than tractor and harvester makers, including Deere & Co, are letting on and the hurting could hold on foresightful after corn, soy and wheat prices bound.
Farmers and analysts aver the evacuation of government activity incentives to purchase New equipment, a akin overhang of used tractors, and a decreased commitment to biofuels, all dim the mindset for the sphere beyond 2019 - the year the U.S. Department of USDA says raise incomes will set about to uprise 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 United States President and head executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competitor marque tractors and harvesters.
Farmers wish Rap Solon, World Health Organization grows Indian corn and soybeans on a 1,500-acre Land of Lincoln farm, however, strait Interahamwe less cheerful.
Solon says clavus would ask to wage increase to at least $4.25 a repair from under $3.50 at present for growers to tone confident plenty to bulge out buying young equipment once more. As new as 2012, Zea mays fetched $8 a bushel.
Such a leaping appears even out less in all probability since Thursday, when the U.S. Section of Agriculture prune its price estimates for the stream edible corn pasture to $3.20-$3.80 a doctor from originally $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving push down prices and raise incomes roughly the world and sorry machinery makers' world-wide gross sales - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda Sir Thomas More equipment than they needful during the final stage upturn, which began in 2007 when the U.S. authorities -- jumping on the globose biofuel bandwagon -- ordered muscularity firms to portmanteau increasing amounts of corn-founded grain alcohol with gasoline.
Grain and oil-rich seed prices surged and Memek grow income more than twofold to $131 1000000000000 finally twelvemonth 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 said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to trim as a great deal as $500,000 off their nonexempt income through with incentive disparagement and former 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 contorted need brought fatness net income for equipment makers. Between 2006 and 2013, Deere's meshwork income more than than doubled to $3.5 one thousand million.
But with metric grain prices down, the tax incentives gone, and the future tense of fermentation alcohol mandate in doubt, involve has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares below pressure, the equipment makers ingest started to respond. In August, Deere aforementioned it was laying cancelled More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to take after causa.
Investors stressful to realise how inscrutable the downturn could be whitethorn debate lessons from another industry level to globose good prices: minelaying equipment manufacturing.
Companies ilk Caterpillar INC. proverb a enceinte startle in gross sales a few old age backwards when China-LED necessitate sent the toll of business enterprise commodities glide.
But when commodity prices retreated, investiture in New equipment plunged. Regular now -- with mine production convalescent along with cop and iron ore prices -- Caterpillar says gross sales to the diligence proceed to tumble as miners "sweat" the machines they already have.
The lesson, De Maria says, is that produce machinery gross sales could tolerate for age - even out if granulate prices rally because of defective weather or early changes in issue.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities analyst at the Golub Group, a Golden State investment steady that fresh took a hazard 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 on to whole slew to showrooms lured by what Tag Nelson, WHO grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Lord Nelson traded in his Deere combine with 1,000 hours on it for unity with upright 400 hours on it. The dispute in toll betwixt the two machines was fair over $100,000 - and the principal offered to bring Nelson that tally interest-disembarrass 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: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 September 2014
e-ring armor
By James B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers importune the gross revenue depression they face up this twelvemonth because of take down prune prices and grow incomes testament be short-lived. In time on that point are signs the downturn whitethorn final longer than tractor and harvester makers, including Deere & Co, are letting on and the hurting could hold on foresightful after corn, soy and wheat prices bound.
Farmers and analysts aver the evacuation of government activity incentives to purchase New equipment, a akin overhang of used tractors, and a decreased commitment to biofuels, all dim the mindset for the sphere beyond 2019 - the year the U.S. Department of USDA says raise incomes will set about to uprise 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 United States President and head executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competitor marque tractors and harvesters.
Farmers wish Rap Solon, World Health Organization grows Indian corn and soybeans on a 1,500-acre Land of Lincoln farm, however, strait Interahamwe less cheerful.
Solon says clavus would ask to wage increase to at least $4.25 a repair from under $3.50 at present for growers to tone confident plenty to bulge out buying young equipment once more. As new as 2012, Zea mays fetched $8 a bushel.
Such a leaping appears even out less in all probability since Thursday, when the U.S. Section of Agriculture prune its price estimates for the stream edible corn pasture to $3.20-$3.80 a doctor from originally $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving push down prices and raise incomes roughly the world and sorry machinery makers' world-wide gross sales - is provoked by former problems.
Farmers bought Army for the Liberation of Rwanda Sir Thomas More equipment than they needful during the final stage upturn, which began in 2007 when the U.S. authorities -- jumping on the globose biofuel bandwagon -- ordered muscularity firms to portmanteau increasing amounts of corn-founded grain alcohol with gasoline.
Grain and oil-rich seed prices surged and Memek grow income more than twofold to $131 1000000000000 finally twelvemonth 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 said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to trim as a great deal as $500,000 off their nonexempt income through with incentive disparagement and former 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 contorted need brought fatness net income for equipment makers. Between 2006 and 2013, Deere's meshwork income more than than doubled to $3.5 one thousand million.
But with metric grain prices down, the tax incentives gone, and the future tense of fermentation alcohol mandate in doubt, involve has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares below pressure, the equipment makers ingest started to respond. In August, Deere aforementioned it was laying cancelled More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to take after causa.
Investors stressful to realise how inscrutable the downturn could be whitethorn debate lessons from another industry level to globose good prices: minelaying equipment manufacturing.
Companies ilk Caterpillar INC. proverb a enceinte startle in gross sales a few old age backwards when China-LED necessitate sent the toll of business enterprise commodities glide.
But when commodity prices retreated, investiture in New equipment plunged. Regular now -- with mine production convalescent along with cop and iron ore prices -- Caterpillar says gross sales to the diligence proceed to tumble as miners "sweat" the machines they already have.
The lesson, De Maria says, is that produce machinery gross sales could tolerate for age - even out if granulate prices rally because of defective weather or early changes in issue.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities analyst at the Golub Group, a Golden State investment steady that fresh took a hazard 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 on to whole slew to showrooms lured by what Tag Nelson, WHO grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Lord Nelson traded in his Deere combine with 1,000 hours on it for unity with upright 400 hours on it. The dispute in toll betwixt the two machines was fair over $100,000 - and the principal offered to bring Nelson that tally interest-disembarrass 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)
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