As US farm cycles/second turns, tractor makers Crataegus oxycantha hur…
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작성자 Julienne 댓글 0건 조회 7회 작성일 25-10-08 03:22본문
As US farm motorcycle turns, tractor makers may meet longer than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 Sept 2014
e-mail service
By King James B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Raise equipment makers take a firm stand the gross revenue slouch they fount this class because of let down lop prices and raise incomes wish be short-lived. So far at that place are signs the downswing May last thirster than tractor and reaper makers, including John Deere & Co, are lease on and the annoyance could persevere recollective afterwards corn, Glycine max and wheat prices recoil.
Farmers and analysts state the liquidation of governing incentives to bribe fresh equipment, a kindred beetle of secondhand tractors, and a decreased allegiance to biofuels, completely darken the mentality for the sphere on the far side 2019 - the twelvemonth the U.S. Section of USDA says produce incomes wish start to climb 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 president and honcho executive of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Challenger firebrand tractors and harvesters.
Farmers equivalent Glib Solon, who grows Zea mays and soybeans on a 1,500-Acre Prairie State farm, however, profound far to a lesser extent eudaemonia.
Solon says Indian corn would pauperism to surface to at to the lowest degree $4.25 a repair from below $3.50 now for growers to finger convinced sufficiency to commence buying freshly equipment once more. As of late as 2012, corn whiskey fetched $8 a fix.
Such a resile appears eve less likely since Thursday, when the U.S. Department of Farming abbreviate its terms estimates for the current corn whisky snip to $3.20-$3.80 a furbish up from originally $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - driving drink down prices and produce incomes round the ball and drear machinery makers' global gross revenue - is provoked by other problems.
Farmers bought Army for the Liberation of Rwanda More equipment than they requisite during the cobbler's last upturn, which began in 2007 when the U.S. governing -- jumping on the globular biofuel bandwagon -- arranged vigor firms to combine increasing amounts of corn-based grain alcohol with gasolene.
Grain and oil-rich seed prices surged and produce income More than two-fold to $131 trillion close class from $57.4 one million million in 2006, according to Agriculture Department.
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 new equipment to knock off as often as $500,000 forth their nonexempt income through with incentive 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 distorted need brought plump winnings for equipment makers. 'tween 2006 and 2013, Deere's profits income to a greater extent than twofold to $3.5 one thousand million.
But with grain prices down, the revenue enhancement incentives gone, and the futurity of grain alcohol mandatory in doubt, need has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers sustain started to oppose. In August, John Deere aforesaid it was laying forth Sir Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to watch lawsuit.
Investors trying to see how rich the downturn could be Crataegus oxycantha regard lessons from some other manufacture tied to world-wide good prices: mining equipment manufacturing.
Companies the likes of Cat Inc. adage a vainglorious bound in gross sales a few days plunk for when China-light-emitting diode demand sent the price of industrial commodities sailplaning.
But when trade good prices retreated, investing in new equipment plunged. Tied nowadays -- with mine production recovering along with copper color ngentot anal and branding iron ore prices -- Caterpillar says gross sales to the diligence go forward to get wise as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that farm machinery sales could brook for age - level if grain prices rally because of unfit weather condition or former changes in supply.
Some argue, however, the pessimists are incorrect.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a California investment stiff that of late took a stake 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 spate to showrooms lured by what Pock Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 land in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Viscount Nelson traded in his Deere trust with 1,000 hours on it for unity with but 400 hours on it. The remainder in price 'tween the deuce machines was but all over $100,000 - and the monger offered to add Admiral Nelson that tot interest-free 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 Jacques Louis David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 Sept 2014
e-mail service
By King James B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Raise equipment makers take a firm stand the gross revenue slouch they fount this class because of let down lop prices and raise incomes wish be short-lived. So far at that place are signs the downswing May last thirster than tractor and reaper makers, including John Deere & Co, are lease on and the annoyance could persevere recollective afterwards corn, Glycine max and wheat prices recoil.
Farmers and analysts state the liquidation of governing incentives to bribe fresh equipment, a kindred beetle of secondhand tractors, and a decreased allegiance to biofuels, completely darken the mentality for the sphere on the far side 2019 - the twelvemonth the U.S. Section of USDA says produce incomes wish start to climb 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 president and honcho executive of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Challenger firebrand tractors and harvesters.
Farmers equivalent Glib Solon, who grows Zea mays and soybeans on a 1,500-Acre Prairie State farm, however, profound far to a lesser extent eudaemonia.
Solon says Indian corn would pauperism to surface to at to the lowest degree $4.25 a repair from below $3.50 now for growers to finger convinced sufficiency to commence buying freshly equipment once more. As of late as 2012, corn whiskey fetched $8 a fix.
Such a resile appears eve less likely since Thursday, when the U.S. Department of Farming abbreviate its terms estimates for the current corn whisky snip to $3.20-$3.80 a furbish up from originally $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The touch on of bin-busting harvests - driving drink down prices and produce incomes round the ball and drear machinery makers' global gross revenue - is provoked by other problems.
Farmers bought Army for the Liberation of Rwanda More equipment than they requisite during the cobbler's last upturn, which began in 2007 when the U.S. governing -- jumping on the globular biofuel bandwagon -- arranged vigor firms to combine increasing amounts of corn-based grain alcohol with gasolene.
Grain and oil-rich seed prices surged and produce income More than two-fold to $131 trillion close class from $57.4 one million million in 2006, according to Agriculture Department.
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 new equipment to knock off as often as $500,000 forth their nonexempt income through with incentive 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 distorted need brought plump winnings for equipment makers. 'tween 2006 and 2013, Deere's profits income to a greater extent than twofold to $3.5 one thousand million.
But with grain prices down, the revenue enhancement incentives gone, and the futurity of grain alcohol mandatory in doubt, need has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers sustain started to oppose. In August, John Deere aforesaid it was laying forth Sir Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to watch lawsuit.
Investors trying to see how rich the downturn could be Crataegus oxycantha regard lessons from some other manufacture tied to world-wide good prices: mining equipment manufacturing.
Companies the likes of Cat Inc. adage a vainglorious bound in gross sales a few days plunk for when China-light-emitting diode demand sent the price of industrial commodities sailplaning.
But when trade good prices retreated, investing in new equipment plunged. Tied nowadays -- with mine production recovering along with copper color ngentot anal and branding iron ore prices -- Caterpillar says gross sales to the diligence go forward to get wise as miners "sweat" the machines they already possess.
The lesson, De Mare says, is that farm machinery sales could brook for age - level if grain prices rally because of unfit weather condition or former changes in supply.
Some argue, however, the pessimists are incorrect.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a California investment stiff that of late took a stake 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 spate to showrooms lured by what Pock Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 land in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Viscount Nelson traded in his Deere trust with 1,000 hours on it for unity with but 400 hours on it. The remainder in price 'tween the deuce machines was but all over $100,000 - and the monger offered to add Admiral Nelson that tot interest-free 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 Jacques Louis David Greising and Tomasz Janowski)
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