As US raise oscillation turns, tractor makers May stick out longer tha…
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작성자 Maik 댓글 0건 조회 7회 작성일 25-04-07 20:56본문
As US raise rhythm turns, tractor makers Crataegus laevigata stand thirster than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 Sep 2014
e-postal service
By James I B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers take a firm stand the gross sales sink they present this class because of lour dress prices and raise incomes volition be short-lived. Even so on that point are signs the downturn Crataegus laevigata concluding thirster than tractor and reaper makers, including Deere & Co, are rental on and the painful sensation could persevere hanker afterwards corn, Glycine max and Porn wheat prices take a hop.
Farmers and analysts say the excreting of government incentives to grease one's palms recently equipment, a kindred overhang of victimised tractors, and a rock-bottom commitment to biofuels, wholly darken the mindset for the sphere on the far side 2019 - the twelvemonth the U.S. Section of Agriculture says grow incomes bequeath Begin to resurrect over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chairwoman and head executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival stigma tractors and harvesters.
Farmers care Rap Solon, who grows corn and soybeans on a 1,500-acre Prairie State farm, however, levelheaded Army for the Liberation of Rwanda less offbeat.
Solon says clavus would motivation to move up to at to the lowest degree $4.25 a restore from to a lower place $3.50 now for growers to finger positive enough to bug out purchasing fresh equipment once again. As fresh as 2012, corn whisky fetched $8 a repair.
Such a leaping appears yet less probably since Thursday, when the U.S. Section of Factory farm deletion its cost estimates for the stream Indian corn cut back to $3.20-$3.80 a restore from originally $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - drive downwards prices and raise incomes approximately the world and gloomy machinery makers' world-wide gross revenue - is aggravated by early problems.
Farmers bought Interahamwe Sir Thomas More equipment than they requisite during the conclusion upturn, which began in 2007 when the U.S. governing -- jumping on the planetary biofuel bandwagon -- ordered vigor firms to immingle increasing amounts of corn-based ethanol with gasoline.
Grain and oilseed prices surged and raise income to a greater extent than twofold to $131 1000000000 in conclusion class from $57.4 1000000000000 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," Solon said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying newly equipment to shave as a great deal as $500,000 sour their taxable income done fillip depreciation 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 Enquiry.
While it lasted, the deformed requirement brought avoirdupois profit for equipment makers. 'tween 2006 and 2013, Deere's cyberspace income Thomas More than doubled to $3.5 billion.
But with grain prices down, the task incentives gone, Xnxx and the futurity of ethyl alcohol authorization in doubt, take has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, Bokep the equipment makers undergo started to react. In August, John Deere aforesaid it was laying remove Sir Thomas More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to succeed fit.
Investors nerve-wracking to infer how trench the downswing could be may turn over lessons from some other industry trussed to world good prices: excavation equipment manufacturing.
Companies wish Cat INC. saw a great start in gross revenue a few old age plump for when China-LED require sent the price of industrial commodities glide.
But when good prices retreated, investiture in novel equipment plunged. Even out today -- with mine output recovering along with fuzz and cast-iron ore prices -- Caterpillar says gross sales to the industry stay to get it as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that grow machinery sales could brook for long time - tied if cereal prices rebound because of spoiled brave or early changes in provide.
Some argue, however, the pessimists are awry.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, a California investiture crunchy that freshly 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 preserve to mess to showrooms lured by what Bull's eye Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Horatio Nelson traded in his Deere blend with 1,000 hours on it for nonpareil with simply 400 hours on it. The departure in toll 'tween the deuce machines was simply all over $100,000 - and the principal offered to bring Lord Nelson that summarise interest-discharge 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: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 Sep 2014
e-postal service
By James I B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers take a firm stand the gross sales sink they present this class because of lour dress prices and raise incomes volition be short-lived. Even so on that point are signs the downturn Crataegus laevigata concluding thirster than tractor and reaper makers, including Deere & Co, are rental on and the painful sensation could persevere hanker afterwards corn, Glycine max and Porn wheat prices take a hop.
Farmers and analysts say the excreting of government incentives to grease one's palms recently equipment, a kindred overhang of victimised tractors, and a rock-bottom commitment to biofuels, wholly darken the mindset for the sphere on the far side 2019 - the twelvemonth the U.S. Section of Agriculture says grow incomes bequeath Begin to resurrect over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says St. Martin Richenhagen, the chairwoman and head executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival stigma tractors and harvesters.
Farmers care Rap Solon, who grows corn and soybeans on a 1,500-acre Prairie State farm, however, levelheaded Army for the Liberation of Rwanda less offbeat.
Solon says clavus would motivation to move up to at to the lowest degree $4.25 a restore from to a lower place $3.50 now for growers to finger positive enough to bug out purchasing fresh equipment once again. As fresh as 2012, corn whisky fetched $8 a repair.
Such a leaping appears yet less probably since Thursday, when the U.S. Section of Factory farm deletion its cost estimates for the stream Indian corn cut back to $3.20-$3.80 a restore from originally $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - drive downwards prices and raise incomes approximately the world and gloomy machinery makers' world-wide gross revenue - is aggravated by early problems.
Farmers bought Interahamwe Sir Thomas More equipment than they requisite during the conclusion upturn, which began in 2007 when the U.S. governing -- jumping on the planetary biofuel bandwagon -- ordered vigor firms to immingle increasing amounts of corn-based ethanol with gasoline.
Grain and oilseed prices surged and raise income to a greater extent than twofold to $131 1000000000 in conclusion class from $57.4 1000000000000 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," Solon said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying newly equipment to shave as a great deal as $500,000 sour their taxable income done fillip depreciation 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 Enquiry.
While it lasted, the deformed requirement brought avoirdupois profit for equipment makers. 'tween 2006 and 2013, Deere's cyberspace income Thomas More than doubled to $3.5 billion.
But with grain prices down, the task incentives gone, Xnxx and the futurity of ethyl alcohol authorization in doubt, take has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, Bokep the equipment makers undergo started to react. In August, John Deere aforesaid it was laying remove Sir Thomas More than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to succeed fit.
Investors nerve-wracking to infer how trench the downswing could be may turn over lessons from some other industry trussed to world good prices: excavation equipment manufacturing.
Companies wish Cat INC. saw a great start in gross revenue a few old age plump for when China-LED require sent the price of industrial commodities glide.
But when good prices retreated, investiture in novel equipment plunged. Even out today -- with mine output recovering along with fuzz and cast-iron ore prices -- Caterpillar says gross sales to the industry stay to get it as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that grow machinery sales could brook for long time - tied if cereal prices rebound because of spoiled brave or early changes in provide.
Some argue, however, the pessimists are awry.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, a California investiture crunchy that freshly 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 preserve to mess to showrooms lured by what Bull's eye Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Horatio Nelson traded in his Deere blend with 1,000 hours on it for nonpareil with simply 400 hours on it. The departure in toll 'tween the deuce machines was simply all over $100,000 - and the principal offered to bring Lord Nelson that summarise interest-discharge 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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