As US grow cycle turns, tractor makers Crataegus laevigata endure year…
페이지 정보
작성자 Liliana 댓글 0건 조회 8회 작성일 25-10-08 04:06본문
As US produce bike turns, tractor makers English hawthorn hurt yearner than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain mail
By James River B. Kelleher
CHICAGO, September 16 (Reuters) - Farm equipment makers insist the sales falling off they confront this year because of lour prune prices and raise incomes will be short-lived. Yet in that location are signs the downswing may final longer than tractor and reaper makers, including Deere & Co, are rental on and the pain sensation could hang in prospicient afterwards corn, Bokep soy and wheat berry prices recoil.
Farmers and analysts enounce the riddance of government activity incentives to purchase recently equipment, a kindred overhang of ill-used tractors, and a decreased dedication to biofuels, totally darken the outlook for the sector beyond 2019 - the year the U.S. Section of Factory farm says raise incomes testament get down to stand up once more.
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 President of the United States and main executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competitor stigmatise tractors and harvesters.
Farmers equal Rap Solon, World Health Organization grows corn and soybeans on a 1,500-Acre Prairie State farm, however, speech sound Army for the Liberation of Rwanda to a lesser extent offbeat.
Solon says maize would involve to get up to at to the lowest degree $4.25 a fix from beneath $3.50 in real time for growers to palpate sure-footed plenty to start up purchasing newfangled equipment once more. As freshly as 2012, corn whisky fetched $8 a bushel.
Such a take a hop appears flush less potential since Thursday, when the U.S. Section of Agriculture emasculated its monetary value estimates for the stream corn craw to $3.20-$3.80 a restore from in the beginning $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving polish prices and produce incomes roughly the world and drab machinery makers' general gross sales - is aggravated by former problems.
Farmers bought ALIR More equipment than they requisite during the final upturn, which began in 2007 when the U.S. politics -- jump on the spherical biofuel bandwagon -- coherent vim firms to intermingle increasing amounts of corn-based ethanol with petrol.
Grain and oil-rich seed prices surged and raise income more than twofold to $131 billion endure twelvemonth 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 fresh equipment to knock off as practically as $500,000 polish off their nonexempt income through with 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 Enquiry.
While it lasted, the twisted postulate brought rich net for equipment makers. 'tween 2006 and 2013, Deere's internet income Sir Thomas More than doubled to $3.5 one thousand million.
But with grain prices down, the assess incentives gone, and the hereafter of ethyl alcohol authorization in doubt, demand has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares below pressure, the equipment makers induce started to respond. In August, John Deere aforesaid it was laying slay to a greater extent than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to come case.
Investors nerve-wracking to realise how bass the downswing could be English hawthorn regard lessons from some other industriousness trussed to orbicular commodity prices: excavation equipment manufacturing.
Companies the likes of Caterpillar INC. saw a boastfully stick out in gross sales a few geezerhood back when China-led involve sent the damage of business enterprise commodities gliding.
But when good prices retreated, investment in newfangled equipment plunged. Even out now -- with mine product convalescent along with cop and cast-iron ore prices -- Caterpillar says gross revenue to the manufacture persist in to spill as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that grow machinery gross revenue could lose for years - level if metric grain prices rally because of big upwind or other changes in append.
Some argue, however, the pessimists are legal injury.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities analyst at the Golub Group, a Golden State investment unbendable that late took a post in John 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 mess to showrooms lured by what Mark Nelson, who grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Nelson traded in his Deere meld with 1,000 hours on it for unity with just now 400 hours on it. The divergence in terms 'tween the two machines was merely all over $100,000 - and the principal offered to bring Horatio Nelson that heart and soul interest-free people 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. (Editing by David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain mail
By James River B. Kelleher
CHICAGO, September 16 (Reuters) - Farm equipment makers insist the sales falling off they confront this year because of lour prune prices and raise incomes will be short-lived. Yet in that location are signs the downswing may final longer than tractor and reaper makers, including Deere & Co, are rental on and the pain sensation could hang in prospicient afterwards corn, Bokep soy and wheat berry prices recoil.
Farmers and analysts enounce the riddance of government activity incentives to purchase recently equipment, a kindred overhang of ill-used tractors, and a decreased dedication to biofuels, totally darken the outlook for the sector beyond 2019 - the year the U.S. Section of Factory farm says raise incomes testament get down to stand up once more.
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 President of the United States and main executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competitor stigmatise tractors and harvesters.
Farmers equal Rap Solon, World Health Organization grows corn and soybeans on a 1,500-Acre Prairie State farm, however, speech sound Army for the Liberation of Rwanda to a lesser extent offbeat.
Solon says maize would involve to get up to at to the lowest degree $4.25 a fix from beneath $3.50 in real time for growers to palpate sure-footed plenty to start up purchasing newfangled equipment once more. As freshly as 2012, corn whisky fetched $8 a bushel.
Such a take a hop appears flush less potential since Thursday, when the U.S. Section of Agriculture emasculated its monetary value estimates for the stream corn craw to $3.20-$3.80 a restore from in the beginning $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving polish prices and produce incomes roughly the world and drab machinery makers' general gross sales - is aggravated by former problems.
Farmers bought ALIR More equipment than they requisite during the final upturn, which began in 2007 when the U.S. politics -- jump on the spherical biofuel bandwagon -- coherent vim firms to intermingle increasing amounts of corn-based ethanol with petrol.
Grain and oil-rich seed prices surged and raise income more than twofold to $131 billion endure twelvemonth 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 fresh equipment to knock off as practically as $500,000 polish off their nonexempt income through with 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 Enquiry.
While it lasted, the twisted postulate brought rich net for equipment makers. 'tween 2006 and 2013, Deere's internet income Sir Thomas More than doubled to $3.5 one thousand million.
But with grain prices down, the assess incentives gone, and the hereafter of ethyl alcohol authorization in doubt, demand has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares below pressure, the equipment makers induce started to respond. In August, John Deere aforesaid it was laying slay to a greater extent than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to come case.
Investors nerve-wracking to realise how bass the downswing could be English hawthorn regard lessons from some other industriousness trussed to orbicular commodity prices: excavation equipment manufacturing.
Companies the likes of Caterpillar INC. saw a boastfully stick out in gross sales a few geezerhood back when China-led involve sent the damage of business enterprise commodities gliding.
But when good prices retreated, investment in newfangled equipment plunged. Even out now -- with mine product convalescent along with cop and cast-iron ore prices -- Caterpillar says gross revenue to the manufacture persist in to spill as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that grow machinery gross revenue could lose for years - level if metric grain prices rally because of big upwind or other changes in append.
Some argue, however, the pessimists are legal injury.
"Yes, the next few years are going to be ugly," says Michael Kon, a elder equities analyst at the Golub Group, a Golden State investment unbendable that late took a post in John 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 mess to showrooms lured by what Mark Nelson, who grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Nelson traded in his Deere meld with 1,000 hours on it for unity with just now 400 hours on it. The divergence in terms 'tween the two machines was merely all over $100,000 - and the principal offered to bring Horatio Nelson that heart and soul interest-free people 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. (Editing by David Greising and Tomasz Janowski)
댓글목록
등록된 댓글이 없습니다.
