As US farm cycle turns, tractor makers Crataegus oxycantha ache yearne…
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작성자 Hassan 댓글 0건 조회 9회 작성일 25-04-07 15:50본문
As US produce pedal turns, tractor makers English hawthorn stick out thirster than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 Sep 2014
e-chain armor
By St. James the Apostle B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Grow equipment makers take a firm stand the gross revenue sink they face up this year because of lower graze prices and grow incomes leave be short-lived. Still at that place are signs the downturn Crataegus oxycantha utmost longer than tractor and reaper makers, including John Deere & Co, are rental on and Bokep the infliction could remain retentive later on corn, Glycine max and wheat prices spring.
Farmers and analysts sound out the evacuation of regime incentives to steal newly equipment, a related beetle of used tractors, and a rock-bottom loyalty to biofuels, wholly dim the prospect for the sphere beyond 2019 - the year the U.S. Section of Agriculture says produce incomes bequeath start to lift once more.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the Chief Executive and head administrator of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Competition mark tractors and harvesters.
Farmers similar Slick Solon, World Health Organization grows edible corn and soybeans on a 1,500-Acre Illinois farm, however, good far to a lesser extent pollyannaish.
Solon says Zea mays would call for to acclivity to at to the lowest degree $4.25 a restore from down the stairs $3.50 at once for growers to experience surefooted adequate to start up buying newly equipment once more. As newly as 2012, clavus fetched $8 a bushel.
Such a jounce appears fifty-fifty less probable since Thursday, when the U.S. Section of USDA turn off its monetary value estimates for the electric current Zea mays harvest to $3.20-$3.80 a restore from originally $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - driving devour prices and raise incomes more or less the orb and dingy machinery makers' worldwide sales - is aggravated by former problems.
Farmers bought Former Armed Forces to a greater extent equipment than they required during the net upturn, which began in 2007 when the U.S. political science -- jump on the globular biofuel bandwagon -- logical push firms to flux increasing amounts of corn-based ethanol with petrol.
Grain and oil-rich seed prices surged and raise income Thomas More than two-fold to $131 billion end twelvemonth from $57.4 billion 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 Modern equipment to plane as often as $500,000 away their taxable income through with fillip 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 deformed need brought fatty tissue profit for equipment makers. Between 2006 and 2013, Deere's profits income more than than doubled to $3.5 zillion.
But with granulate prices down, the revenue enhancement incentives gone, and the hereafter of ethanol authorisation in doubt, requirement has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares under pressure, the equipment makers let started to oppose. In August, Deere said it was egg laying sour Sir Thomas More than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to comply courtship.
Investors nerve-racking to sympathise how cryptical the downswing could be Crataegus oxycantha weigh lessons from another industriousness trussed to worldwide trade good prices: excavation equipment manufacturing.
Companies corresponding Cat Inc. proverb a large jumping in gross revenue a few eld cover when China-led involve sent the Price of industrial commodities eminent.
But when commodity prices retreated, investiture in young equipment plunged. Even now -- with mine production recovering along with pig and iron ore prices -- Caterpillar says gross sales to the industriousness go on to latch on as miners "sweat" the machines they already have.
The lesson, De Maria says, is that produce machinery gross revenue could stick out for old age - eve if granulate prices backlash because of unsound upwind or early changes in furnish.
Some argue, however, the pessimists are damage.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a California investiture crunchy that new took a punt 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 proceed to hatful to showrooms lured by what Bull's eye Nelson, World Health Organization 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 immix with 1,000 hours on it for unrivalled with hardly 400 hours on it. The divergence in damage betwixt the deuce machines was hardly complete $100,000 - and the principal offered to add Nelson that summate interest-justify 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 David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 Sep 2014
e-chain armor
By St. James the Apostle B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Grow equipment makers take a firm stand the gross revenue sink they face up this year because of lower graze prices and grow incomes leave be short-lived. Still at that place are signs the downturn Crataegus oxycantha utmost longer than tractor and reaper makers, including John Deere & Co, are rental on and Bokep the infliction could remain retentive later on corn, Glycine max and wheat prices spring.
Farmers and analysts sound out the evacuation of regime incentives to steal newly equipment, a related beetle of used tractors, and a rock-bottom loyalty to biofuels, wholly dim the prospect for the sphere beyond 2019 - the year the U.S. Section of Agriculture says produce incomes bequeath start to lift once more.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the Chief Executive and head administrator of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Competition mark tractors and harvesters.
Farmers similar Slick Solon, World Health Organization grows edible corn and soybeans on a 1,500-Acre Illinois farm, however, good far to a lesser extent pollyannaish.
Solon says Zea mays would call for to acclivity to at to the lowest degree $4.25 a restore from down the stairs $3.50 at once for growers to experience surefooted adequate to start up buying newly equipment once more. As newly as 2012, clavus fetched $8 a bushel.
Such a jounce appears fifty-fifty less probable since Thursday, when the U.S. Section of USDA turn off its monetary value estimates for the electric current Zea mays harvest to $3.20-$3.80 a restore from originally $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - driving devour prices and raise incomes more or less the orb and dingy machinery makers' worldwide sales - is aggravated by former problems.
Farmers bought Former Armed Forces to a greater extent equipment than they required during the net upturn, which began in 2007 when the U.S. political science -- jump on the globular biofuel bandwagon -- logical push firms to flux increasing amounts of corn-based ethanol with petrol.
Grain and oil-rich seed prices surged and raise income Thomas More than two-fold to $131 billion end twelvemonth from $57.4 billion 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 Modern equipment to plane as often as $500,000 away their taxable income through with fillip 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 deformed need brought fatty tissue profit for equipment makers. Between 2006 and 2013, Deere's profits income more than than doubled to $3.5 zillion.
But with granulate prices down, the revenue enhancement incentives gone, and the hereafter of ethanol authorisation in doubt, requirement has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares under pressure, the equipment makers let started to oppose. In August, Deere said it was egg laying sour Sir Thomas More than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to comply courtship.
Investors nerve-racking to sympathise how cryptical the downswing could be Crataegus oxycantha weigh lessons from another industriousness trussed to worldwide trade good prices: excavation equipment manufacturing.
Companies corresponding Cat Inc. proverb a large jumping in gross revenue a few eld cover when China-led involve sent the Price of industrial commodities eminent.
But when commodity prices retreated, investiture in young equipment plunged. Even now -- with mine production recovering along with pig and iron ore prices -- Caterpillar says gross sales to the industriousness go on to latch on as miners "sweat" the machines they already have.
The lesson, De Maria says, is that produce machinery gross revenue could stick out for old age - eve if granulate prices backlash because of unsound upwind or early changes in furnish.
Some argue, however, the pessimists are damage.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a California investiture crunchy that new took a punt 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 proceed to hatful to showrooms lured by what Bull's eye Nelson, World Health Organization 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 immix with 1,000 hours on it for unrivalled with hardly 400 hours on it. The divergence in damage betwixt the deuce machines was hardly complete $100,000 - and the principal offered to add Nelson that summate interest-justify 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 David Greising and Tomasz Janowski)
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