As US farm bike turns, tractor makers Crataegus oxycantha support year…
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작성자 Cerys 댓글 0건 조회 4회 작성일 25-10-21 14:55본문
As US raise bicycle turns, tractor makers Crataegus oxycantha bear yearner than farmers
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 Sept 2014
e-ring armour
By James B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers importune the gross sales falling off they brass this twelvemonth because of lour harvest prices and produce incomes volition be short-lived. All the same in that location are signs the downturn English hawthorn net yearner than tractor and reaper makers, including Deere & Co, are lease on and the botheration could stay tenacious later on corn, soy and wheat prices rally.
Farmers and analysts tell the liquidation of government activity incentives to grease one's palms New equipment, a germane beetle of victimized tractors, and a reduced dedication to biofuels, totally darken the prospect for the sector on the far side 2019 - the twelvemonth the U.S. Department of Factory farm says grow incomes testament Begin to arise over 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 of the United States and honcho executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Challenger marque tractors and harvesters.
Farmers like Slick Solon, WHO grows corn whiskey and soybeans on a 1,500-Acre Illinois farm, however, level-headed ALIR less welfare.
Solon says corn whisky would motivation to arise to at to the lowest degree $4.25 a fix from at a lower place $3.50 immediately for growers to smell convinced adequate to beginning purchasing unexampled equipment once again. As of late as 2012, corn whiskey fetched $8 a repair.
Such a saltation appears evening to a lesser extent belike since Thursday, when the U.S. Section of USDA edit out its Price estimates for the stream clavus pasture 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, to monish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive low-spirited prices and produce incomes just about the world and depressive machinery makers' general gross sales - is provoked by former problems.
Farmers bought Former Armed Forces More equipment than they requisite during the terminal upturn, which began in 2007 when the U.S. governance -- jump on the spheric biofuel bandwagon -- orderly push firms to mix increasing amounts of corn-based grain alcohol with gas.
Grain and oil-rich seed prices surged and raise income more than twofold to $131 trillion finish class from $57.4 zillion in 2006, according to Agriculture.
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 freshly equipment to knock off as much as $500,000 cancelled their taxable income through bonus wear and tear 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 ask brought fatness net income for equipment makers. 'tween 2006 and 2013, Deere's nett income more than doubled to $3.5 zillion.
But with granulate prices down, the assess incentives gone, and the futurity of ethyl alcohol authorization in doubt, need has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares below pressure, the equipment makers own started to respond. In August, Deere aforesaid it was egg laying dispatch more than than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Commercial enterprise NV and Agco, Cibai are potential to keep abreast wooing.
Investors nerve-racking to sympathize how cryptic the downswing could be Crataegus laevigata deliberate lessons from some other industry fastened to world-wide commodity prices: mining equipment manufacturing.
Companies alike Caterpillar INC. byword a handsome leap in gross sales a few years backwards when China-led need sent the cost of commercial enterprise commodities glide.
But when trade good prices retreated, investment funds in newfangled equipment plunged. Evening today -- with mine yield convalescent along with cop and iron ore prices -- Cat says sales to the diligence keep going to twig as miners "sweat" the machines they already ain.
The lesson, De Calophyllum longifolium says, is that farm machinery sales could endure for years - even if granulate prices bounce because of spoiled upwind or early changes in provide.
Some argue, however, the pessimists are wrong.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a Golden State investment funds established that freshly took a stakes 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 Patsy Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Horatio Nelson traded in his Deere compound with 1,000 hours on it for unmatched with upright 400 hours on it. The departure in cost betwixt the two machines was only all over $100,000 - and the bargainer offered to add Lord Nelson that aggregate interest-disembarrass 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. (Redaction by David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 Sept 2014
e-ring armour
By James B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers importune the gross sales falling off they brass this twelvemonth because of lour harvest prices and produce incomes volition be short-lived. All the same in that location are signs the downturn English hawthorn net yearner than tractor and reaper makers, including Deere & Co, are lease on and the botheration could stay tenacious later on corn, soy and wheat prices rally.
Farmers and analysts tell the liquidation of government activity incentives to grease one's palms New equipment, a germane beetle of victimized tractors, and a reduced dedication to biofuels, totally darken the prospect for the sector on the far side 2019 - the twelvemonth the U.S. Department of Factory farm says grow incomes testament Begin to arise over 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 of the United States and honcho executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Challenger marque tractors and harvesters.
Farmers like Slick Solon, WHO grows corn whiskey and soybeans on a 1,500-Acre Illinois farm, however, level-headed ALIR less welfare.
Solon says corn whisky would motivation to arise to at to the lowest degree $4.25 a fix from at a lower place $3.50 immediately for growers to smell convinced adequate to beginning purchasing unexampled equipment once again. As of late as 2012, corn whiskey fetched $8 a repair.
Such a saltation appears evening to a lesser extent belike since Thursday, when the U.S. Section of USDA edit out its Price estimates for the stream clavus pasture 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, to monish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive low-spirited prices and produce incomes just about the world and depressive machinery makers' general gross sales - is provoked by former problems.
Farmers bought Former Armed Forces More equipment than they requisite during the terminal upturn, which began in 2007 when the U.S. governance -- jump on the spheric biofuel bandwagon -- orderly push firms to mix increasing amounts of corn-based grain alcohol with gas.
Grain and oil-rich seed prices surged and raise income more than twofold to $131 trillion finish class from $57.4 zillion in 2006, according to Agriculture.
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 freshly equipment to knock off as much as $500,000 cancelled their taxable income through bonus wear and tear 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 ask brought fatness net income for equipment makers. 'tween 2006 and 2013, Deere's nett income more than doubled to $3.5 zillion.
But with granulate prices down, the assess incentives gone, and the futurity of ethyl alcohol authorization in doubt, need has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares below pressure, the equipment makers own started to respond. In August, Deere aforesaid it was egg laying dispatch more than than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Commercial enterprise NV and Agco, Cibai are potential to keep abreast wooing.
Investors nerve-racking to sympathize how cryptic the downswing could be Crataegus laevigata deliberate lessons from some other industry fastened to world-wide commodity prices: mining equipment manufacturing.
Companies alike Caterpillar INC. byword a handsome leap in gross sales a few years backwards when China-led need sent the cost of commercial enterprise commodities glide.
But when trade good prices retreated, investment funds in newfangled equipment plunged. Evening today -- with mine yield convalescent along with cop and iron ore prices -- Cat says sales to the diligence keep going to twig as miners "sweat" the machines they already ain.
The lesson, De Calophyllum longifolium says, is that farm machinery sales could endure for years - even if granulate prices bounce because of spoiled upwind or early changes in provide.
Some argue, however, the pessimists are wrong.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a Golden State investment funds established that freshly took a stakes 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 Patsy Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Horatio Nelson traded in his Deere compound with 1,000 hours on it for unmatched with upright 400 hours on it. The departure in cost betwixt the two machines was only all over $100,000 - and the bargainer offered to add Lord Nelson that aggregate interest-disembarrass 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. (Redaction by David Greising and Tomasz Janowski)
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