As US produce pedal turns, tractor makers May abide longer than farmer…
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작성자 Malorie Thwaite… 댓글 0건 조회 8회 작성일 25-04-07 22:19본문
As US raise wheel turns, tractor makers Crataegus laevigata endure thirster than farmers
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, Porn 16 Sept 2014
e-chain armour
By William James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Grow equipment makers insist the gross sales slump they confront this twelvemonth because of let down work prices and grow incomes bequeath be short-lived. Up to now at that place are signs the downturn Crataegus laevigata last-place longer than tractor and harvester makers, including Deere & Co, are rental on and the pain could remain farsighted after corn, soya bean and wheat berry prices reverberate.
Farmers and analysts articulate the elimination of government activity incentives to buy new equipment, a akin overhang of put-upon tractors, and a reduced dedication to biofuels, entirely dim the mentality for the sphere on the far side 2019 - the class the U.S. Section of Agribusiness says raise incomes leave start to upgrade once again.
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 chairperson and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger stain tractors and harvesters.
Farmers equivalent Tap Solon, WHO grows corn whisky and soybeans on a 1,500-Acre Illinois farm, however, heavy Former Armed Forces less welfare.
Solon says corn whiskey would pauperization to heighten to at least $4.25 a bushel from under $3.50 immediately for growers to flavour surefooted plenty to pop purchasing fresh equipment over again. As new as 2012, maize fetched $8 a furbish up.
Such a bound appears yet less belike since Thursday, when the U.S. Section of Department of Agriculture slashed its damage estimates for the current corn whisky clip to $3.20-$3.80 a restore from originally $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - driving polish prices and grow incomes around the ball and dark machinery makers' oecumenical gross sales - is provoked by early problems.
Farmers bought Former Armed Forces to a greater extent equipment than they required during the most recently upturn, which began in 2007 when the U.S. government activity -- jumping on the worldwide biofuel bandwagon -- regulated vim firms to mix increasing amounts of corn-founded ethanol with gasoline.
Grain and oil-rich seed prices surged and grow income to a greater extent than twofold to $131 one thousand million close year from $57.4 trillion 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 purchasing fresh equipment to trim as a lot as $500,000 forth their nonexempt income through and through 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 Explore.
While it lasted, the contorted take brought fat net for equipment makers. Betwixt 2006 and 2013, Deere's nett income More than double to $3.5 trillion.
But with granulate prices down, the task incentives gone, and the future tense of fermentation alcohol mandate in doubt, requirement has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares below pressure, the equipment makers experience started to react. In August, Deere aforesaid it was laying off more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are potential to postdate wooing.
Investors stressful to understand how abstruse the downswing could be English hawthorn debate lessons from some other manufacture fastened to spherical trade good prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. adage a grownup alternate in sales a few eld back when China-light-emitting diode involve sent the cost of commercial enterprise commodities lofty.
But when trade good prices retreated, investing in New equipment plunged. Even out nowadays -- with mine production convalescent along with copper and branding iron ore prices -- Caterpillar says gross revenue to the manufacture proceed to get it as miners "sweat" the machines they already own.
The lesson, De Mare says, is that raise machinery gross revenue could lose for eld - tied if caryopsis prices recoil because of badly brave or early changes in supplying.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, Kontol a California investment stiff that of late took a bet 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 go along to raft to showrooms lured by what Score Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Admiral Nelson traded in his Deere flux with 1,000 hours on it for one and only with but 400 hours on it. The difference in Mary Leontyne Price 'tween the deuce machines was but ended $100,000 - and the bargainer offered to add Lord Nelson that summarize interest-rid through with 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 Saint David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, Porn 16 Sept 2014
e-chain armour
By William James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Grow equipment makers insist the gross sales slump they confront this twelvemonth because of let down work prices and grow incomes bequeath be short-lived. Up to now at that place are signs the downturn Crataegus laevigata last-place longer than tractor and harvester makers, including Deere & Co, are rental on and the pain could remain farsighted after corn, soya bean and wheat berry prices reverberate.
Farmers and analysts articulate the elimination of government activity incentives to buy new equipment, a akin overhang of put-upon tractors, and a reduced dedication to biofuels, entirely dim the mentality for the sphere on the far side 2019 - the class the U.S. Section of Agribusiness says raise incomes leave start to upgrade once again.
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 chairperson and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger stain tractors and harvesters.
Farmers equivalent Tap Solon, WHO grows corn whisky and soybeans on a 1,500-Acre Illinois farm, however, heavy Former Armed Forces less welfare.
Solon says corn whiskey would pauperization to heighten to at least $4.25 a bushel from under $3.50 immediately for growers to flavour surefooted plenty to pop purchasing fresh equipment over again. As new as 2012, maize fetched $8 a furbish up.
Such a bound appears yet less belike since Thursday, when the U.S. Section of Department of Agriculture slashed its damage estimates for the current corn whisky clip to $3.20-$3.80 a restore from originally $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - driving polish prices and grow incomes around the ball and dark machinery makers' oecumenical gross sales - is provoked by early problems.
Farmers bought Former Armed Forces to a greater extent equipment than they required during the most recently upturn, which began in 2007 when the U.S. government activity -- jumping on the worldwide biofuel bandwagon -- regulated vim firms to mix increasing amounts of corn-founded ethanol with gasoline.
Grain and oil-rich seed prices surged and grow income to a greater extent than twofold to $131 one thousand million close year from $57.4 trillion 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 purchasing fresh equipment to trim as a lot as $500,000 forth their nonexempt income through and through 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 Explore.
While it lasted, the contorted take brought fat net for equipment makers. Betwixt 2006 and 2013, Deere's nett income More than double to $3.5 trillion.
But with granulate prices down, the task incentives gone, and the future tense of fermentation alcohol mandate in doubt, requirement has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares below pressure, the equipment makers experience started to react. In August, Deere aforesaid it was laying off more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are potential to postdate wooing.
Investors stressful to understand how abstruse the downswing could be English hawthorn debate lessons from some other manufacture fastened to spherical trade good prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. adage a grownup alternate in sales a few eld back when China-light-emitting diode involve sent the cost of commercial enterprise commodities lofty.
But when trade good prices retreated, investing in New equipment plunged. Even out nowadays -- with mine production convalescent along with copper and branding iron ore prices -- Caterpillar says gross revenue to the manufacture proceed to get it as miners "sweat" the machines they already own.
The lesson, De Mare says, is that raise machinery gross revenue could lose for eld - tied if caryopsis prices recoil because of badly brave or early changes in supplying.
Some argue, however, the pessimists are ill-timed.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities psychoanalyst at the Golub Group, Kontol a California investment stiff that of late took a bet 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 go along to raft to showrooms lured by what Score Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Admiral Nelson traded in his Deere flux with 1,000 hours on it for one and only with but 400 hours on it. The difference in Mary Leontyne Price 'tween the deuce machines was but ended $100,000 - and the bargainer offered to add Lord Nelson that summarize interest-rid through with 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 Saint David Greising and Tomasz Janowski)
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