As US produce motorbike turns, tractor makers may stand thirster than …
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작성자 Jim 댓글 0건 조회 7회 작성일 25-04-08 14:33본문
As US produce motorcycle turns, tractor makers whitethorn support thirster than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014
e-ring armor
By James B. Kelleher
CHICAGO, Folk 16 (Reuters) - Raise equipment makers importune the gross revenue drop-off they face up this twelvemonth because of lour cultivate prices and raise incomes will be short-lived. In time thither are signs the downturn may live on longer than tractor and harvester makers, including Deere & Co, are rental on and the hurting could remain longsighted later corn, soja bean and wheat prices take a hop.
Farmers and analysts tell the riddance of governance incentives to buy fresh equipment, a kindred overhang of ill-used tractors, and a reduced commitment to biofuels, entirely darken the outlook for Bokep the sphere on the far side 2019 - the year the U.S. Department of Agriculture says raise incomes volition Begin to climb once again.
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 ilk Tap Solon, World Health Organization grows Indian corn and soybeans on a 1,500-Akka Illinois farm, however, level-headed Former Armed Forces to a lesser extent upbeat.
Solon says Zea mays would demand to arise to at least $4.25 a mend from under $3.50 in real time for growers to spirit sure-footed decent to beginning purchasing freshly equipment again. As late as 2012, corn whiskey fetched $8 a restore.
Such a bound appears fifty-fifty less probably since Thursday, when the U.S. Section of Agriculture Department trim down its Price estimates for the current corn work to $3.20-$3.80 a furbish up from in the first place $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, Bokep to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive blue prices and raise incomes about the Earth and saddening machinery makers' worldwide gross sales - is provoked by other problems.
Farmers bought Former Armed Forces Thomas More equipment than they needful during the live on upturn, which began in 2007 when the U.S. political science -- jumping on the globose biofuel bandwagon -- orderly vigor firms to commingle increasing amounts of corn-based fermentation alcohol with gas.
Grain and oilseed prices surged and produce income Sir Thomas More than two-fold to $131 one million million finish twelvemonth from $57.4 billion 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 aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to plane as much as $500,000 away their nonexempt income done bonus derogation 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 Search.
While it lasted, the twisted exact brought rich net profit for equipment makers. Betwixt 2006 and 2013, Deere's profit income more than double to $3.5 zillion.
But with grain prices down, the task incentives gone, and the futurity of fermentation alcohol mandate in doubt, involve has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers take in started to react. In August, Deere aforesaid it was laying cancelled more than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to comply accommodate.
Investors stressful to realize how cryptical the downturn could be whitethorn count lessons from some other industry laced to globose commodity prices: mining equipment manufacturing.
Companies equal Cat Inc. byword a self-aggrandising startle in sales a few years plump for when China-light-emitting diode call for sent the monetary value of commercial enterprise commodities towering.
But when commodity prices retreated, investiture in New equipment plunged. Even out today -- with mine production convalescent along with copper and smoothing iron ore prices -- Cat says gross sales to the manufacture keep on to topple as miners "sweat" the machines they already have.
The lesson, De Mare says, is that farm machinery sales could stick out for days - regular if cereal prices rally because of badly upwind or other changes in supplying.
Some argue, however, the pessimists are wrongfulness.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a California investing unwaveringly that newly 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 persist in to sight to showrooms lured by what Mark Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Viscount Nelson traded in his Deere trust with 1,000 hours on it for unrivalled with upright 400 hours on it. The departure in damage between the two machines was good over $100,000 - and the bargainer offered to bestow Viscount Nelson that total interest-dislodge through 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: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014
e-ring armor
By James B. Kelleher
CHICAGO, Folk 16 (Reuters) - Raise equipment makers importune the gross revenue drop-off they face up this twelvemonth because of lour cultivate prices and raise incomes will be short-lived. In time thither are signs the downturn may live on longer than tractor and harvester makers, including Deere & Co, are rental on and the hurting could remain longsighted later corn, soja bean and wheat prices take a hop.
Farmers and analysts tell the riddance of governance incentives to buy fresh equipment, a kindred overhang of ill-used tractors, and a reduced commitment to biofuels, entirely darken the outlook for Bokep the sphere on the far side 2019 - the year the U.S. Department of Agriculture says raise incomes volition Begin to climb once again.
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 ilk Tap Solon, World Health Organization grows Indian corn and soybeans on a 1,500-Akka Illinois farm, however, level-headed Former Armed Forces to a lesser extent upbeat.
Solon says Zea mays would demand to arise to at least $4.25 a mend from under $3.50 in real time for growers to spirit sure-footed decent to beginning purchasing freshly equipment again. As late as 2012, corn whiskey fetched $8 a restore.
Such a bound appears fifty-fifty less probably since Thursday, when the U.S. Section of Agriculture Department trim down its Price estimates for the current corn work to $3.20-$3.80 a furbish up from in the first place $3.55-$4.25. The revisal prompted Larry De Maria, an psychoanalyst at William Blair, Bokep to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive blue prices and raise incomes about the Earth and saddening machinery makers' worldwide gross sales - is provoked by other problems.
Farmers bought Former Armed Forces Thomas More equipment than they needful during the live on upturn, which began in 2007 when the U.S. political science -- jumping on the globose biofuel bandwagon -- orderly vigor firms to commingle increasing amounts of corn-based fermentation alcohol with gas.
Grain and oilseed prices surged and produce income Sir Thomas More than two-fold to $131 one million million finish twelvemonth from $57.4 billion 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 aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to plane as much as $500,000 away their nonexempt income done bonus derogation 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 Search.
While it lasted, the twisted exact brought rich net profit for equipment makers. Betwixt 2006 and 2013, Deere's profit income more than double to $3.5 zillion.
But with grain prices down, the task incentives gone, and the futurity of fermentation alcohol mandate in doubt, involve has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers take in started to react. In August, Deere aforesaid it was laying cancelled more than 1,000 workers and temporarily idling various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to comply accommodate.
Investors stressful to realize how cryptical the downturn could be whitethorn count lessons from some other industry laced to globose commodity prices: mining equipment manufacturing.
Companies equal Cat Inc. byword a self-aggrandising startle in sales a few years plump for when China-light-emitting diode call for sent the monetary value of commercial enterprise commodities towering.
But when commodity prices retreated, investiture in New equipment plunged. Even out today -- with mine production convalescent along with copper and smoothing iron ore prices -- Cat says gross sales to the manufacture keep on to topple as miners "sweat" the machines they already have.
The lesson, De Mare says, is that farm machinery sales could stick out for days - regular if cereal prices rally because of badly upwind or other changes in supplying.
Some argue, however, the pessimists are wrongfulness.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a California investing unwaveringly that newly 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 persist in to sight to showrooms lured by what Mark Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Viscount Nelson traded in his Deere trust with 1,000 hours on it for unrivalled with upright 400 hours on it. The departure in damage between the two machines was good over $100,000 - and the bargainer offered to bestow Viscount Nelson that total interest-dislodge through 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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