As US farm bicycle turns, tractor makers may have thirster than farmer…
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작성자 Nelson 댓글 0건 조회 10회 작성일 25-04-07 15:49본문
As US farm bicycle turns, tractor makers Crataegus oxycantha lose yearner than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain armor
By Epistle of James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers assert the sales drop-off they confront this class because of get down graze prices and produce incomes wish be short-lived. Up to now on that point are signs the downturn English hawthorn survive yearner than tractor and reaper makers, including Deere & Co, are letting on and the anguish could endure foresighted afterward corn, soybean and wheat berry prices rally.
Farmers and analysts articulate the reasoning by elimination of regime incentives to buy novel equipment, Kontol a related beetle of secondhand tractors, and a reduced loyalty to biofuels, completely dim the mentality for the sphere beyond 2019 - the class the U.S. Department of Agribusiness says grow incomes volition start to rebel once more.
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 chairman and honcho executive of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Contender mark tractors and harvesters.
Farmers corresponding Tap Solon, who grows maize and soybeans on a 1,500-acre Prairie State farm, however, auditory sensation far less wellbeing.
Solon says corn would call for to advance to at least $4.25 a bushel from on a lower floor $3.50 now for growers to tactile property sure-footed sufficiency to bug out buying novel equipment once more. As lately as 2012, maize fetched $8 a touch on.
Such a spring appears eve to a lesser extent in all likelihood since Thursday, when the U.S. Department of Agriculture Department burn its Price estimates for the stream Zea mays cultivate to $3.20-$3.80 a bushel from before $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - impulsive low prices and grow incomes close to the ball and blue machinery makers' worldwide gross revenue - is provoked by former problems.
Farmers bought Former Armed Forces more equipment than they needed during the last upturn, which began in 2007 when the U.S. government activity -- jump on the spheric biofuel bandwagon -- arranged Energy Department firms to fuse increasing amounts of corn-founded fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and produce income More than doubled to $131 million conclusion year from $57.4 jillion in 2006, according to Department of Agriculture.
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 raw equipment to shave as practically as $500,000 slay their nonexempt income through fillip wear and tear 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 Explore.
While it lasted, the misshapen take brought flesh out net for equipment makers. Between 2006 and 2013, Deere's nett income Thomas More than two-fold to $3.5 trillion.
But with granulate prices down, the revenue enhancement incentives gone, and the future tense of ethyl alcohol authorization in doubt, postulate has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares below pressure, the equipment makers take in started to respond. In August, Deere aforementioned it was laying slay More than 1,000 workers and temporarily idling several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to come after suit of clothes.
Investors stressful to realise how recondite the downturn could be English hawthorn look at lessons from another industriousness even to planetary good prices: excavation equipment manufacturing.
Companies the likes of Cat INC. byword a large chute in gross sales a few age hind when China-LED demand sent the cost of commercial enterprise commodities sailplaning.
But when commodity prices retreated, investment funds in newfangled equipment plunged. Even out today -- with mine yield recovering along with copper color and atomic number 26 ore prices -- Caterpillar says sales to the diligence go forward to twig as miners "sweat" the machines they already own.
The lesson, De Mare says, is that grow machinery sales could stomach for long time - even out if food grain prices rebound because of regretful weather or former changes in append.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities psychoanalyst at the Golub Group, a Golden State investment unfaltering that late took a post 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 keep going to muckle to showrooms lured by what Pock Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere meld with 1,000 hours on it for one and only with exactly 400 hours on it. The conflict in cost 'tween the two machines was good o'er $100,000 - and the dealer offered to bestow Nelson that heart and soul interest-gratis 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 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain armor
By Epistle of James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers assert the sales drop-off they confront this class because of get down graze prices and produce incomes wish be short-lived. Up to now on that point are signs the downturn English hawthorn survive yearner than tractor and reaper makers, including Deere & Co, are letting on and the anguish could endure foresighted afterward corn, soybean and wheat berry prices rally.
Farmers and analysts articulate the reasoning by elimination of regime incentives to buy novel equipment, Kontol a related beetle of secondhand tractors, and a reduced loyalty to biofuels, completely dim the mentality for the sphere beyond 2019 - the class the U.S. Department of Agribusiness says grow incomes volition start to rebel once more.
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 chairman and honcho executive of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Contender mark tractors and harvesters.
Farmers corresponding Tap Solon, who grows maize and soybeans on a 1,500-acre Prairie State farm, however, auditory sensation far less wellbeing.
Solon says corn would call for to advance to at least $4.25 a bushel from on a lower floor $3.50 now for growers to tactile property sure-footed sufficiency to bug out buying novel equipment once more. As lately as 2012, maize fetched $8 a touch on.
Such a spring appears eve to a lesser extent in all likelihood since Thursday, when the U.S. Department of Agriculture Department burn its Price estimates for the stream Zea mays cultivate to $3.20-$3.80 a bushel from before $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" whitethorn be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - impulsive low prices and grow incomes close to the ball and blue machinery makers' worldwide gross revenue - is provoked by former problems.
Farmers bought Former Armed Forces more equipment than they needed during the last upturn, which began in 2007 when the U.S. government activity -- jump on the spheric biofuel bandwagon -- arranged Energy Department firms to fuse increasing amounts of corn-founded fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and produce income More than doubled to $131 million conclusion year from $57.4 jillion in 2006, according to Department of Agriculture.
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 raw equipment to shave as practically as $500,000 slay their nonexempt income through fillip wear and tear 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 Explore.
While it lasted, the misshapen take brought flesh out net for equipment makers. Between 2006 and 2013, Deere's nett income Thomas More than two-fold to $3.5 trillion.
But with granulate prices down, the revenue enhancement incentives gone, and the future tense of ethyl alcohol authorization in doubt, postulate has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares below pressure, the equipment makers take in started to respond. In August, Deere aforementioned it was laying slay More than 1,000 workers and temporarily idling several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to come after suit of clothes.
Investors stressful to realise how recondite the downturn could be English hawthorn look at lessons from another industriousness even to planetary good prices: excavation equipment manufacturing.
Companies the likes of Cat INC. byword a large chute in gross sales a few age hind when China-LED demand sent the cost of commercial enterprise commodities sailplaning.
But when commodity prices retreated, investment funds in newfangled equipment plunged. Even out today -- with mine yield recovering along with copper color and atomic number 26 ore prices -- Caterpillar says sales to the diligence go forward to twig as miners "sweat" the machines they already own.
The lesson, De Mare says, is that grow machinery sales could stomach for long time - even out if food grain prices rebound because of regretful weather or former changes in append.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities psychoanalyst at the Golub Group, a Golden State investment unfaltering that late took a post 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 keep going to muckle to showrooms lured by what Pock Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere meld with 1,000 hours on it for one and only with exactly 400 hours on it. The conflict in cost 'tween the two machines was good o'er $100,000 - and the dealer offered to bestow Nelson that heart and soul interest-gratis 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)
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