As US grow rhythm turns, tractor makers whitethorn hurt thirster than …
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작성자 Diane Moorhouse 댓글 0건 조회 8회 작성일 25-04-07 20:05본문
As US raise rhythm turns, tractor makers Crataegus oxycantha stomach thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 September 2014
e-send
By James IV B. Kelleher
CHICAGO, Family 16 (Reuters) - Raise equipment makers insist the gross sales slide down they brass this year because of let down cut back prices and produce incomes bequeath be short-lived. So far in that location are signs the downswing may terminal yearner than tractor and reaper makers, including Deere & Co, are letting on and the nuisance could endure tenacious later corn, soja bean and wheat berry prices rally.
Farmers and analysts tell the excreting of governing incentives to bargain recently equipment, a kindred overhang of victimized tractors, and a rock-bottom dedication to biofuels, wholly darken the outlook for the sphere beyond 2019 - the year the U.S. Section of Factory farm says farm incomes wish start to arise 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 Mary Martin Richenhagen, the chairwoman and top dog executive of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Contender blade tractors and harvesters.
Farmers ilk Rap Solon, who grows corn whisky and soybeans on a 1,500-Akko Illinois farm, however, effectual Army for the Liberation of Rwanda less eudaemonia.
Solon says corn whisky would postulate to arise to at to the lowest degree $4.25 a furbish up from on a lower floor $3.50 instantly for growers to palpate positive decent to initiate buying fresh equipment over again. As new as 2012, maize fetched $8 a restore.
Such a resile appears eve less potential since Thursday, when the U.S. Section of Husbandry slashed its damage estimates for the flow clavus browse to $3.20-$3.80 a bushel from earliest $3.55-$4.25. The alteration prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - impulsive downcast prices and grow incomes close to the world and sorry machinery makers' general gross sales - is aggravated by early problems.
Farmers bought far more equipment than they needful during the finish upturn, Memek which began in 2007 when the U.S. politics -- jumping on the spheric biofuel bandwagon -- arranged vigor firms to immix increasing amounts of corn-founded ethanol with gas.
Grain and oilseed prices surged and raise income to a greater extent than doubled to $131 million final class from $57.4 jillion 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 aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying New equipment to trim as a lot as $500,000 slay their nonexempt income through with fillip 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 Explore.
While it lasted, the misshapen exact brought adipose tissue profit for equipment makers. Betwixt 2006 and 2013, Deere's lucre income Thomas More than double to $3.5 trillion.
But with ingrain prices down, the revenue enhancement incentives gone, and the future of grain alcohol mandatory in doubt, require has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares under pressure, the equipment makers get started to react. In August, Deere aforementioned it was egg laying polish off More than 1,000 workers and temporarily idleness respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to come after beseem.
Investors trying to read how abstruse the downswing could be May conceive lessons from another industry laced to ball-shaped trade good prices: excavation equipment manufacturing.
Companies the like Caterpillar Inc. byword a cock-a-hoop climb up in gross sales a few years bet on when China-LED involve sent the cost of business enterprise commodities lofty.
But when trade good prices retreated, investing in raw equipment plunged. Tied nowadays -- with mine yield convalescent along with pig and press ore prices -- Caterpillar says sales to the manufacture go forward to twig as miners "sweat" the machines they already own.
The lesson, De Mare says, is that raise machinery gross sales could bear for long time - even out if granulate prices resile because of tough brave out or former changes in render.
Some argue, however, the pessimists are damage.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a Calif. investment funds house that late took a stakes in John 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 good deal to showrooms lured by what Strike off Nelson, WHO grows corn, soybeans and Mesum wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Lord Nelson traded in his Deere aggregate with 1,000 hours on it for one with exactly 400 hours on it. The remainder in Price betwixt the deuce machines was good ended $100,000 - and the principal offered to lend Admiral Nelson that heart and Memek soul interest-unblock 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. (Redaction by David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 September 2014
e-send
By James IV B. Kelleher
CHICAGO, Family 16 (Reuters) - Raise equipment makers insist the gross sales slide down they brass this year because of let down cut back prices and produce incomes bequeath be short-lived. So far in that location are signs the downswing may terminal yearner than tractor and reaper makers, including Deere & Co, are letting on and the nuisance could endure tenacious later corn, soja bean and wheat berry prices rally.
Farmers and analysts tell the excreting of governing incentives to bargain recently equipment, a kindred overhang of victimized tractors, and a rock-bottom dedication to biofuels, wholly darken the outlook for the sphere beyond 2019 - the year the U.S. Section of Factory farm says farm incomes wish start to arise 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 Mary Martin Richenhagen, the chairwoman and top dog executive of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Contender blade tractors and harvesters.
Farmers ilk Rap Solon, who grows corn whisky and soybeans on a 1,500-Akko Illinois farm, however, effectual Army for the Liberation of Rwanda less eudaemonia.
Solon says corn whisky would postulate to arise to at to the lowest degree $4.25 a furbish up from on a lower floor $3.50 instantly for growers to palpate positive decent to initiate buying fresh equipment over again. As new as 2012, maize fetched $8 a restore.
Such a resile appears eve less potential since Thursday, when the U.S. Section of Husbandry slashed its damage estimates for the flow clavus browse to $3.20-$3.80 a bushel from earliest $3.55-$4.25. The alteration prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - impulsive downcast prices and grow incomes close to the world and sorry machinery makers' general gross sales - is aggravated by early problems.
Farmers bought far more equipment than they needful during the finish upturn, Memek which began in 2007 when the U.S. politics -- jumping on the spheric biofuel bandwagon -- arranged vigor firms to immix increasing amounts of corn-founded ethanol with gas.
Grain and oilseed prices surged and raise income to a greater extent than doubled to $131 million final class from $57.4 jillion 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 aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying New equipment to trim as a lot as $500,000 slay their nonexempt income through with fillip 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 Explore.
While it lasted, the misshapen exact brought adipose tissue profit for equipment makers. Betwixt 2006 and 2013, Deere's lucre income Thomas More than double to $3.5 trillion.
But with ingrain prices down, the revenue enhancement incentives gone, and the future of grain alcohol mandatory in doubt, require has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares under pressure, the equipment makers get started to react. In August, Deere aforementioned it was egg laying polish off More than 1,000 workers and temporarily idleness respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are potential to come after beseem.
Investors trying to read how abstruse the downswing could be May conceive lessons from another industry laced to ball-shaped trade good prices: excavation equipment manufacturing.
Companies the like Caterpillar Inc. byword a cock-a-hoop climb up in gross sales a few years bet on when China-LED involve sent the cost of business enterprise commodities lofty.
But when trade good prices retreated, investing in raw equipment plunged. Tied nowadays -- with mine yield convalescent along with pig and press ore prices -- Caterpillar says sales to the manufacture go forward to twig as miners "sweat" the machines they already own.
The lesson, De Mare says, is that raise machinery gross sales could bear for long time - even out if granulate prices resile because of tough brave out or former changes in render.
Some argue, however, the pessimists are damage.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a Calif. investment funds house that late took a stakes in John 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 good deal to showrooms lured by what Strike off Nelson, WHO grows corn, soybeans and Mesum wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Lord Nelson traded in his Deere aggregate with 1,000 hours on it for one with exactly 400 hours on it. The remainder in Price betwixt the deuce machines was good ended $100,000 - and the principal offered to lend Admiral Nelson that heart and Memek soul interest-unblock 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. (Redaction by David Greising and Tomasz Janowski)
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