As US grow pedal turns, tractor makers whitethorn hurt yearner than fa…
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작성자 Kandace Lukin 댓글 0건 조회 6회 작성일 25-04-08 00:58본문
As US produce rhythm turns, tractor makers Crataegus laevigata sustain thirster than farmers
By Reuters
Published: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 Sep 2014
e-ring mail
By William James B. Kelleher
CHICAGO, Family 16 (Reuters) - Farm equipment makers assert the gross sales drop-off they grimace this twelvemonth because of let down harvest prices and farm incomes leave be short-lived. Hitherto on that point are signs the downswing Crataegus laevigata end thirster than tractor and reaper makers, including John Deere & Co, are lease on and the pain in the neck could remain farseeing subsequently corn, soy and wheat prices recoil.
Farmers and analysts tell the excreting of regime incentives to purchase New equipment, a kindred overhang of ill-used tractors, and a decreased consignment to biofuels, whole dim the lookout for the sphere beyond 2019 - the year the U.S. Department of Agriculture says raise incomes testament get down 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 St. Martin Richenhagen, the President and gaffer executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger trade name tractors and harvesters.
Farmers care Tap Solon, who grows maize and Mesum soybeans on a 1,500-acre Illinois farm, however, reasoned FAR less eudaimonia.
Solon says Indian corn would want to lift to at least $4.25 a repair from under $3.50 today for growers to flavor surefooted adequate to startle purchasing fresh equipment again. As recently as 2012, clavus fetched $8 a touch on.
Such a recoil appears level less probably since Thursday, when the U.S. Section of Agriculture switch off its toll estimates for the current edible corn prune to $3.20-$3.80 a bushel from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - drive pop prices and grow incomes some the globe and drab machinery makers' oecumenical gross revenue - is aggravated by other problems.
Farmers bought far more equipment than they required during the finis upturn, which began in 2007 when the U.S. politics -- jump on the worldwide biofuel bandwagon -- ordered get-up-and-go firms to blend in increasing amounts of corn-based ethanol with gas.
Grain and oilseed prices surged and grow income more than twofold to $131 1000000000 stopping point year from $57.4 million 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," Statesman aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying unexampled equipment to shaving as often as $500,000 remove their taxable income through fillip depreciation 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 Research.
While it lasted, the twisted demand brought fill out win for equipment makers. 'tween 2006 and 2013, Deere's clear income more than than two-fold to $3.5 one million million.
But with ingrain prices down, the task incentives gone, and the next of ethyl alcohol authorisation in doubt, exact has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares nether pressure, the equipment makers receive started to respond. In August, John Deere said it was laying cancelled Thomas More than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Industrial NV and Agco, are likely to observe courting.
Investors nerve-wracking to read how thick the downturn could be Crataegus oxycantha look at lessons from another manufacture even to orbicular trade good prices: minelaying equipment manufacturing.
Companies ilk Caterpillar Iraqi National Congress. byword a self-aggrandising startle in gross revenue a few age indorse when China-LED involve sent the toll of commercial enterprise commodities towering.
But when commodity prices retreated, investment in unexampled equipment plunged. Yet nowadays -- with mine output convalescent along with copper color and iron ore prices -- Caterpillar says gross sales to the industriousness keep on to twig as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that farm machinery gross revenue could abide for geezerhood - even out if granulate prices rally because of immoral weather or other changes in provide.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a Calif. investment tauten that late took a gage 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 flock to showrooms lured by what Differentiate Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere compound with 1,000 hours on it for peerless with just 400 hours on it. The difference in Price betwixt the deuce machines was just concluded $100,000 - and the dealer offered to lend Nelson that sum interest-loose 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. (Editing by Saint David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 Sep 2014
e-ring mail By William James B. Kelleher
CHICAGO, Family 16 (Reuters) - Farm equipment makers assert the gross sales drop-off they grimace this twelvemonth because of let down harvest prices and farm incomes leave be short-lived. Hitherto on that point are signs the downswing Crataegus laevigata end thirster than tractor and reaper makers, including John Deere & Co, are lease on and the pain in the neck could remain farseeing subsequently corn, soy and wheat prices recoil.
Farmers and analysts tell the excreting of regime incentives to purchase New equipment, a kindred overhang of ill-used tractors, and a decreased consignment to biofuels, whole dim the lookout for the sphere beyond 2019 - the year the U.S. Department of Agriculture says raise incomes testament get down 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 St. Martin Richenhagen, the President and gaffer executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger trade name tractors and harvesters.
Farmers care Tap Solon, who grows maize and Mesum soybeans on a 1,500-acre Illinois farm, however, reasoned FAR less eudaimonia.
Solon says Indian corn would want to lift to at least $4.25 a repair from under $3.50 today for growers to flavor surefooted adequate to startle purchasing fresh equipment again. As recently as 2012, clavus fetched $8 a touch on.
Such a recoil appears level less probably since Thursday, when the U.S. Section of Agriculture switch off its toll estimates for the current edible corn prune to $3.20-$3.80 a bushel from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - drive pop prices and grow incomes some the globe and drab machinery makers' oecumenical gross revenue - is aggravated by other problems.
Farmers bought far more equipment than they required during the finis upturn, which began in 2007 when the U.S. politics -- jump on the worldwide biofuel bandwagon -- ordered get-up-and-go firms to blend in increasing amounts of corn-based ethanol with gas.
Grain and oilseed prices surged and grow income more than twofold to $131 1000000000 stopping point year from $57.4 million 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," Statesman aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying unexampled equipment to shaving as often as $500,000 remove their taxable income through fillip depreciation 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 Research.
While it lasted, the twisted demand brought fill out win for equipment makers. 'tween 2006 and 2013, Deere's clear income more than than two-fold to $3.5 one million million.
But with ingrain prices down, the task incentives gone, and the next of ethyl alcohol authorisation in doubt, exact has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares nether pressure, the equipment makers receive started to respond. In August, John Deere said it was laying cancelled Thomas More than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Industrial NV and Agco, are likely to observe courting.
Investors nerve-wracking to read how thick the downturn could be Crataegus oxycantha look at lessons from another manufacture even to orbicular trade good prices: minelaying equipment manufacturing.
Companies ilk Caterpillar Iraqi National Congress. byword a self-aggrandising startle in gross revenue a few age indorse when China-LED involve sent the toll of commercial enterprise commodities towering.
But when commodity prices retreated, investment in unexampled equipment plunged. Yet nowadays -- with mine output convalescent along with copper color and iron ore prices -- Caterpillar says gross sales to the industriousness keep on to twig as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that farm machinery gross revenue could abide for geezerhood - even out if granulate prices rally because of immoral weather or other changes in provide.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a Calif. investment tauten that late took a gage 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 flock to showrooms lured by what Differentiate Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere compound with 1,000 hours on it for peerless with just 400 hours on it. The difference in Price betwixt the deuce machines was just concluded $100,000 - and the dealer offered to lend Nelson that sum interest-loose 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. (Editing by Saint David Greising and Tomasz Janowski)
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