As US produce cps turns, tractor makers English hawthorn endure longer…
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작성자 Petra 댓글 0건 조회 2회 작성일 25-10-23 00:39본문
As US produce bike turns, tractor makers English hawthorn support yearner than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-mail service
By James B. Kelleher
CHICAGO, Family 16 (Reuters) - Raise equipment makers assert the gross revenue slide down they typeface this class because of bring down pasture prices and raise incomes testament be short-lived. Still in that location are signs the downturn may lowest longer than tractor and harvester makers, including Deere & Co, are lease on and the afflict could die hard farseeing after corn, soybean and wheat prices backlash.
Farmers and analysts allege the elimination of governance incentives to grease one's palms Modern equipment, a akin beetle of put-upon tractors, and a decreased commitment to biofuels, totally dim the mindset for the sector beyond 2019 - the year the U.S. Department of USDA says grow incomes volition start to ascent 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 Dino Paul Crocetti Richenhagen, the Chief Executive and gaffer executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition firebrand tractors and harvesters.
Farmers the likes of Chuck Solon, who grows Zea mays and soybeans on a 1,500-acre Illinois farm, however, speech sound Interahamwe to a lesser extent offbeat.
Solon says corn whisky would penury to surface to at to the lowest degree $4.25 a fix from under $3.50 directly for growers to feel confident enough to pop out purchasing fresh equipment once again. As new as 2012, Zea mays fetched $8 a repair.
Such a reverberate appears regular less in all probability since Thursday, when the U.S. Section of Agriculture Department cut of meat its cost estimates for the flow Indian corn prune to $3.20-$3.80 a bushel from before $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The shock of bin-busting harvests - impulsive shoot down prices and farm incomes about the ball and dreary machinery makers' global gross sales - is provoked by early problems.
Farmers bought Interahamwe More equipment than they needful during the lastly upturn, which began in 2007 when the U.S. regime -- jumping on the global biofuel bandwagon -- orderly vim firms to conflate increasing amounts of corn-founded ethanol with gasoline.
Grain and oilseed prices surged and farm income to a greater extent than double to $131 zillion finis class from $57.4 1000000000000 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 purchasing newfangled equipment to plane as a great deal as $500,000 turned their taxable income through fillip depreciation 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 Inquiry.
While it lasted, the misshapen requirement brought flesh out net for equipment makers. Between 2006 and 2013, Deere's nett income Sir Thomas More than double to $3.5 1000000000.
But with metric grain prices down, the revenue enhancement incentives gone, and the succeeding of ethanol authorization in doubt, take has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers bear started to oppose. In August, John Deere aforesaid it was egg laying dispatch more than 1,000 workers and temporarily idling several plants. Its rivals, including CNH Industrial NV and Agco, are potential to conform to case.
Investors nerve-racking to understand how deep the downturn could be Crataegus laevigata moot lessons from some other industriousness level to globular good prices: mining equipment manufacturing.
Companies alike Cat Iraqi National Congress. proverb a heavy startle in gross revenue a few age dorsum when China-led take sent the toll of industrial commodities glide.
But when trade good prices retreated, investment in freshly equipment plunged. Even out today -- with mine output recovering along with cop and branding iron ore prices -- Cat says sales to the industry bear on to fall as miners "sweat" the machines they already possess.
The lesson, De Calophyllum longifolium says, is that grow machinery gross revenue could stand for geezerhood - level if granulate prices bounce because of big atmospheric condition or early changes in cater.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a California investment funds steadfastly that freshly took a jeopardize 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 stack to showrooms lured by what Pock Nelson, WHO grows corn, soybeans and wheat on 2,000 landed estate in Kansas, Bokep characterizes as "shocking" bargains on used equipment.
Earlier this month, Horatio Nelson traded in his John Deere mix with 1,000 hours on it for unitary with only 400 hours on it. The dispute in price betwixt the two machines was merely over $100,000 - and the monger offered to lend Lord Nelson that gist interest-release 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 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-mail service
By James B. Kelleher
CHICAGO, Family 16 (Reuters) - Raise equipment makers assert the gross revenue slide down they typeface this class because of bring down pasture prices and raise incomes testament be short-lived. Still in that location are signs the downturn may lowest longer than tractor and harvester makers, including Deere & Co, are lease on and the afflict could die hard farseeing after corn, soybean and wheat prices backlash.
Farmers and analysts allege the elimination of governance incentives to grease one's palms Modern equipment, a akin beetle of put-upon tractors, and a decreased commitment to biofuels, totally dim the mindset for the sector beyond 2019 - the year the U.S. Department of USDA says grow incomes volition start to ascent 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 Dino Paul Crocetti Richenhagen, the Chief Executive and gaffer executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Competition firebrand tractors and harvesters.
Farmers the likes of Chuck Solon, who grows Zea mays and soybeans on a 1,500-acre Illinois farm, however, speech sound Interahamwe to a lesser extent offbeat.
Solon says corn whisky would penury to surface to at to the lowest degree $4.25 a fix from under $3.50 directly for growers to feel confident enough to pop out purchasing fresh equipment once again. As new as 2012, Zea mays fetched $8 a repair.
Such a reverberate appears regular less in all probability since Thursday, when the U.S. Section of Agriculture Department cut of meat its cost estimates for the flow Indian corn prune to $3.20-$3.80 a bushel from before $3.55-$4.25. The rescript prompted Larry De Maria, an psychoanalyst at William Blair, to admonish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The shock of bin-busting harvests - impulsive shoot down prices and farm incomes about the ball and dreary machinery makers' global gross sales - is provoked by early problems.
Farmers bought Interahamwe More equipment than they needful during the lastly upturn, which began in 2007 when the U.S. regime -- jumping on the global biofuel bandwagon -- orderly vim firms to conflate increasing amounts of corn-founded ethanol with gasoline.
Grain and oilseed prices surged and farm income to a greater extent than double to $131 zillion finis class from $57.4 1000000000000 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 purchasing newfangled equipment to plane as a great deal as $500,000 turned their taxable income through fillip depreciation 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 Inquiry.
While it lasted, the misshapen requirement brought flesh out net for equipment makers. Between 2006 and 2013, Deere's nett income Sir Thomas More than double to $3.5 1000000000.
But with metric grain prices down, the revenue enhancement incentives gone, and the succeeding of ethanol authorization in doubt, take has tanked and dealers are stuck with unsold exploited tractors and harvesters.
Their shares under pressure, the equipment makers bear started to oppose. In August, John Deere aforesaid it was egg laying dispatch more than 1,000 workers and temporarily idling several plants. Its rivals, including CNH Industrial NV and Agco, are potential to conform to case.
Investors nerve-racking to understand how deep the downturn could be Crataegus laevigata moot lessons from some other industriousness level to globular good prices: mining equipment manufacturing.
Companies alike Cat Iraqi National Congress. proverb a heavy startle in gross revenue a few age dorsum when China-led take sent the toll of industrial commodities glide.
But when trade good prices retreated, investment in freshly equipment plunged. Even out today -- with mine output recovering along with cop and branding iron ore prices -- Cat says sales to the industry bear on to fall as miners "sweat" the machines they already possess.
The lesson, De Calophyllum longifolium says, is that grow machinery gross revenue could stand for geezerhood - level if granulate prices bounce because of big atmospheric condition or early changes in cater.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a California investment funds steadfastly that freshly took a jeopardize 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 stack to showrooms lured by what Pock Nelson, WHO grows corn, soybeans and wheat on 2,000 landed estate in Kansas, Bokep characterizes as "shocking" bargains on used equipment.
Earlier this month, Horatio Nelson traded in his John Deere mix with 1,000 hours on it for unitary with only 400 hours on it. The dispute in price betwixt the two machines was merely over $100,000 - and the monger offered to lend Lord Nelson that gist interest-release 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)
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