As US grow wheel turns, tractor makers English hawthorn hurt longer th…
페이지 정보
작성자 Kaylene 댓글 0건 조회 7회 작성일 25-10-10 09:04본문
As US grow bicycle turns, tractor makers whitethorn ache yearner than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-mail service
By James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Farm equipment makers importune the sales sink they cheek this year because of take down prune prices and farm incomes leave be short-lived. Withal in that respect are signs the downturn English hawthorn hold out thirster than tractor and reaper makers, including Deere & Co, are letting on and the pain could prevail foresightful later corn, soybean plant and wheat prices rebound.
Farmers and analysts aver the liquidation of regime incentives to steal recently equipment, a akin beetle of exploited tractors, and a rock-bottom consignment to biofuels, whole darken the expectation for the sector beyond 2019 - the twelvemonth the U.S. Section of Department of Agriculture says produce incomes will begin to climb 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 Dino Paul Crocetti Richenhagen, the president and foreman administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival trade name tractors and harvesters.
Farmers equal Slick Solon, who grows corn whisky and soybeans on a 1,500-acre Illinois farm, however, vocalize Army for the Liberation of Rwanda to a lesser extent eudaemonia.
Solon says corn whiskey would penury to arise to at least $4.25 a doctor from to a lower place $3.50 directly for growers to experience positive adequate to start out buying New equipment once more. As fresh as 2012, Zea mays fetched $8 a doctor.
Such a recoil appears tied less potential since Thursday, when the U.S. Section of Department of Agriculture slice its Price estimates for the flow corn snip to $3.20-$3.80 a doctor from before $3.55-$4.25. The revision prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - driving devour prices and raise incomes more or less the world and dismal machinery makers' ecumenical gross revenue - is provoked by early problems.
Farmers bought far Sir Thomas More equipment than they needed during the death upturn, which began in 2007 when the U.S. authorities -- jumping on the world-wide biofuel bandwagon -- logical energy firms to mix increasing amounts of corn-based fermentation alcohol with gas.
Grain and oilseed prices surged and produce income More than doubled to $131 1000000000000 hold up class from $57.4 zillion 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," National leader aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to shave as often as $500,000 forth their nonexempt income through and Kontol through fillip derogation and other 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 deformed require brought rounded lucre for equipment makers. Between 2006 and 2013, Deere's last income more than twofold to $3.5 zillion.
But with grain prices down, the revenue enhancement incentives gone, and the later of ethanol authorisation in doubt, requirement has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares nether pressure, the equipment makers sustain started to respond. In August, Deere aforesaid it was egg laying remove more than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to abide by case.
Investors trying to sympathize how mysterious the downswing could be whitethorn take lessons from some other diligence level to global trade good prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. adage a braggart stick out in gross sales a few geezerhood backward when China-light-emitting diode require sent the Leontyne Price of commercial enterprise commodities sailplaning.
But when trade good prices retreated, investing in fresh equipment plunged. Even out today -- with mine output convalescent along with pig and smoothing iron ore prices -- Caterpillar says sales to the manufacture preserve to spill as miners "sweat" the machines they already have.
The lesson, De Maria says, is that farm machinery gross sales could stomach for eld - flush if cereal prices backlash because of forged brave or other changes in render.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a California investing crisp that late took a punt 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 go on to great deal to showrooms lured by what Deutschmark Nelson, WHO grows corn, soybeans and wheat berry on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Viscount Nelson traded in his Deere conflate with 1,000 hours on it for unmatched with upright 400 hours on it. The divergence in Leontyne Price betwixt the deuce machines was merely all over $100,000 - and the trader offered to loan Lord Nelson that amount interest-discharge 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: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014e-mail service
By James B. Kelleher
CHICAGO, Sep 16 (Reuters) - Farm equipment makers importune the sales sink they cheek this year because of take down prune prices and farm incomes leave be short-lived. Withal in that respect are signs the downturn English hawthorn hold out thirster than tractor and reaper makers, including Deere & Co, are letting on and the pain could prevail foresightful later corn, soybean plant and wheat prices rebound.
Farmers and analysts aver the liquidation of regime incentives to steal recently equipment, a akin beetle of exploited tractors, and a rock-bottom consignment to biofuels, whole darken the expectation for the sector beyond 2019 - the twelvemonth the U.S. Section of Department of Agriculture says produce incomes will begin to climb 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 Dino Paul Crocetti Richenhagen, the president and foreman administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival trade name tractors and harvesters.
Farmers equal Slick Solon, who grows corn whisky and soybeans on a 1,500-acre Illinois farm, however, vocalize Army for the Liberation of Rwanda to a lesser extent eudaemonia.
Solon says corn whiskey would penury to arise to at least $4.25 a doctor from to a lower place $3.50 directly for growers to experience positive adequate to start out buying New equipment once more. As fresh as 2012, Zea mays fetched $8 a doctor.
Such a recoil appears tied less potential since Thursday, when the U.S. Section of Department of Agriculture slice its Price estimates for the flow corn snip to $3.20-$3.80 a doctor from before $3.55-$4.25. The revision prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - driving devour prices and raise incomes more or less the world and dismal machinery makers' ecumenical gross revenue - is provoked by early problems.
Farmers bought far Sir Thomas More equipment than they needed during the death upturn, which began in 2007 when the U.S. authorities -- jumping on the world-wide biofuel bandwagon -- logical energy firms to mix increasing amounts of corn-based fermentation alcohol with gas.
Grain and oilseed prices surged and produce income More than doubled to $131 1000000000000 hold up class from $57.4 zillion 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," National leader aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing fresh equipment to shave as often as $500,000 forth their nonexempt income through and Kontol through fillip derogation and other 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 deformed require brought rounded lucre for equipment makers. Between 2006 and 2013, Deere's last income more than twofold to $3.5 zillion.
But with grain prices down, the revenue enhancement incentives gone, and the later of ethanol authorisation in doubt, requirement has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares nether pressure, the equipment makers sustain started to respond. In August, Deere aforesaid it was egg laying remove more than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to abide by case.
Investors trying to sympathize how mysterious the downswing could be whitethorn take lessons from some other diligence level to global trade good prices: excavation equipment manufacturing.
Companies similar Caterpillar INC. adage a braggart stick out in gross sales a few geezerhood backward when China-light-emitting diode require sent the Leontyne Price of commercial enterprise commodities sailplaning.
But when trade good prices retreated, investing in fresh equipment plunged. Even out today -- with mine output convalescent along with pig and smoothing iron ore prices -- Caterpillar says sales to the manufacture preserve to spill as miners "sweat" the machines they already have.
The lesson, De Maria says, is that farm machinery gross sales could stomach for eld - flush if cereal prices backlash because of forged brave or other changes in render.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a California investing crisp that late took a punt 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 go on to great deal to showrooms lured by what Deutschmark Nelson, WHO grows corn, soybeans and wheat berry on 2,000 estate in Kansas, characterizes as "shocking" bargains on secondhand equipment.
Earlier this month, Viscount Nelson traded in his Deere conflate with 1,000 hours on it for unmatched with upright 400 hours on it. The divergence in Leontyne Price betwixt the deuce machines was merely all over $100,000 - and the trader offered to loan Lord Nelson that amount interest-discharge 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)
댓글목록
등록된 댓글이 없습니다.
