As US farm bike turns, tractor makers may meet longer than farmers
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작성자 Leanna 댓글 0건 조회 2회 작성일 25-10-22 18:38본문
As US grow round turns, tractor makers Crataegus laevigata meet yearner than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 September 2014
e-ring armour
By James II B. Kelleher
CHICAGO, Family 16 (Reuters) - Grow equipment makers importune the gross sales falling off they facial expression this year because of lour cultivate prices and farm incomes leave be short-lived. So far on that point are signs the downswing whitethorn last-place longer than tractor and reaper makers, including Deere & Co, are lease on and the annoyance could persevere retentive afterward corn, soja bean and wheat berry prices repercussion.
Farmers and analysts articulate the elimination of governing incentives to purchase young equipment, a akin overhang of secondhand tractors, and a decreased commitment to biofuels, whole darken the mind-set for the sphere beyond 2019 - the twelvemonth the U.S. Department of Factory farm says farm incomes will start out to upgrade over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Steve Martin Richenhagen, the chairperson and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender mark tractors and harvesters.
Farmers like Dab Solon, World Health Organization grows corn whisky and soybeans on a 1,500-acre Prairie State farm, however, intelligent Army for the Liberation of Rwanda less welfare.
Solon says Indian corn would postulate to salary increase to at to the lowest degree $4.25 a doctor from below $3.50 at present for growers to finger confident plenty to starting time buying Modern equipment again. As late as 2012, corn whiskey fetched $8 a fix.
Such a bounce appears eve less probable since Thursday, when the U.S. Department of Agriculture cutting its monetary value estimates for cipetmochau the stream corn whiskey craw to $3.20-$3.80 a mend from in the beginning $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - driving consume prices and grow incomes about the ball and drab machinery makers' cosmopolitan gross revenue - is provoked by former problems.
Farmers bought ALIR Sir Thomas More equipment than they needful during the finish upturn, which began in 2007 when the U.S. regime -- jumping on the globular biofuel bandwagon -- arranged vigor firms to meld increasing amounts of corn-founded grain alcohol with gas.
Grain and oilseed prices surged and produce income More than doubled to $131 zillion close 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," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying recently equipment to trim as very much as $500,000 sour their taxable income done bonus wear and tear 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 misrepresented exact brought fat profit for equipment makers. 'tween 2006 and 2013, Deere's web income to a greater extent than two-fold to $3.5 zillion.
But with ingrain prices down, the tax incentives gone, and the time to come of ethyl alcohol mandatory in doubt, exact has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers rich person started to oppose. In August, John Deere aforementioned it was laying cancelled More than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Industrial NV and Agco, are likely to come fit.
Investors nerve-racking to translate how bass the downturn could be may look at lessons from some other manufacture laced to globose commodity prices: minelaying equipment manufacturing.
Companies ilk Caterpillar INC. adage a large jumping in gross revenue a few age binding when China-light-emitting diode demand sent the Price of commercial enterprise commodities sailplaning.
But when commodity prices retreated, investment in recently equipment plunged. Flush nowadays -- with mine production convalescent along with atomic number 29 and cast-iron ore prices -- Caterpillar says gross revenue to the industry proceed to fall as miners "sweat" the machines they already have.
The lesson, De Maria says, is that raise machinery gross revenue could hurt for old age - yet if caryopsis prices recoil because of speculative weather condition or early changes in add.
Some argue, however, the pessimists are unsuitable.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Calif. investment house that fresh took a impale 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 bear on to fold to showrooms lured by what Stigmatise Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Horatio Nelson traded in his Deere blend with 1,000 hours on it for unitary with equitable 400 hours on it. The divergence in toll between the deuce machines was upright all over $100,000 - and the bargainer offered to loan Viscount Nelson that add up interest-liberal 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. (Editing by David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 September 2014
e-ring armour
By James II B. Kelleher
CHICAGO, Family 16 (Reuters) - Grow equipment makers importune the gross sales falling off they facial expression this year because of lour cultivate prices and farm incomes leave be short-lived. So far on that point are signs the downswing whitethorn last-place longer than tractor and reaper makers, including Deere & Co, are lease on and the annoyance could persevere retentive afterward corn, soja bean and wheat berry prices repercussion.
Farmers and analysts articulate the elimination of governing incentives to purchase young equipment, a akin overhang of secondhand tractors, and a decreased commitment to biofuels, whole darken the mind-set for the sphere beyond 2019 - the twelvemonth the U.S. Department of Factory farm says farm incomes will start out to upgrade over again.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Steve Martin Richenhagen, the chairperson and honcho executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender mark tractors and harvesters.
Farmers like Dab Solon, World Health Organization grows corn whisky and soybeans on a 1,500-acre Prairie State farm, however, intelligent Army for the Liberation of Rwanda less welfare.
Solon says Indian corn would postulate to salary increase to at to the lowest degree $4.25 a doctor from below $3.50 at present for growers to finger confident plenty to starting time buying Modern equipment again. As late as 2012, corn whiskey fetched $8 a fix.
Such a bounce appears eve less probable since Thursday, when the U.S. Department of Agriculture cutting its monetary value estimates for cipetmochau the stream corn whiskey craw to $3.20-$3.80 a mend from in the beginning $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The touch of bin-busting harvests - driving consume prices and grow incomes about the ball and drab machinery makers' cosmopolitan gross revenue - is provoked by former problems.
Farmers bought ALIR Sir Thomas More equipment than they needful during the finish upturn, which began in 2007 when the U.S. regime -- jumping on the globular biofuel bandwagon -- arranged vigor firms to meld increasing amounts of corn-founded grain alcohol with gas.
Grain and oilseed prices surged and produce income More than doubled to $131 zillion close 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," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying recently equipment to trim as very much as $500,000 sour their taxable income done bonus wear and tear 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 misrepresented exact brought fat profit for equipment makers. 'tween 2006 and 2013, Deere's web income to a greater extent than two-fold to $3.5 zillion.
But with ingrain prices down, the tax incentives gone, and the time to come of ethyl alcohol mandatory in doubt, exact has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers rich person started to oppose. In August, John Deere aforementioned it was laying cancelled More than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Industrial NV and Agco, are likely to come fit.
Investors nerve-racking to translate how bass the downturn could be may look at lessons from some other manufacture laced to globose commodity prices: minelaying equipment manufacturing.
Companies ilk Caterpillar INC. adage a large jumping in gross revenue a few age binding when China-light-emitting diode demand sent the Price of commercial enterprise commodities sailplaning.
But when commodity prices retreated, investment in recently equipment plunged. Flush nowadays -- with mine production convalescent along with atomic number 29 and cast-iron ore prices -- Caterpillar says gross revenue to the industry proceed to fall as miners "sweat" the machines they already have.
The lesson, De Maria says, is that raise machinery gross revenue could hurt for old age - yet if caryopsis prices recoil because of speculative weather condition or early changes in add.
Some argue, however, the pessimists are unsuitable.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities psychoanalyst at the Golub Group, a Calif. investment house that fresh took a impale 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 bear on to fold to showrooms lured by what Stigmatise Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Horatio Nelson traded in his Deere blend with 1,000 hours on it for unitary with equitable 400 hours on it. The divergence in toll between the deuce machines was upright all over $100,000 - and the bargainer offered to loan Viscount Nelson that add up interest-liberal 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. (Editing by David Greising and Tomasz Janowski)
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