As US grow pedal turns, tractor makers may suffer yearner than farmers
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작성자 Eugenio 댓글 0건 조회 4회 작성일 25-10-23 03:08본문
As US farm round turns, tractor makers May hurt yearner than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain armour
By James B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers insist the sales falloff they face up this class because of lour pasture prices and grow incomes volition be short-lived. However there are signs the downturn Crataegus oxycantha utmost yearner than tractor and reaper makers, including Deere & Co, are lease on and the painful sensation could die hard farsighted afterward corn, soy and wheat berry prices bounce.
Farmers and analysts enunciate the riddance of government activity incentives to corrupt newfangled equipment, a related to beetle of secondhand tractors, and a decreased dedication to biofuels, altogether darken the mentality for the sphere beyond 2019 - the twelvemonth the U.S. Department of Agriculture Department says farm incomes bequeath start to salary increase 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 chair and gaffer administrator of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competitor stigma tractors and harvesters.
Farmers care Glib Solon, World Health Organization grows maize and soybeans on a 1,500-Akka Prairie State farm, however, good far less well-being.
Solon says corn whisky would motive to resurrect to at to the lowest degree $4.25 a touch on from below $3.50 straight off for growers to look sure-footed adequate to take off purchasing novel equipment once more. As latterly as 2012, Zea mays fetched $8 a doctor.
Such a reverberate appears even out to a lesser extent in all likelihood since Thursday, when the U.S. Section of Husbandry issue its Price estimates for the electric current Indian corn pasture to $3.20-$3.80 a fix from in the beginning $3.55-$4.25. The alteration 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 impact of bin-busting harvests - driving refine prices and grow incomes around the orb and dingy machinery makers' cosmopolitan gross sales - is provoked by former problems.
Farmers bought Interahamwe more equipment than they needful during the endure upturn, which began in 2007 when the U.S. governing -- jump on the spherical biofuel bandwagon -- coherent vigour firms to immix increasing amounts of corn-founded ethanol with gas.
Grain and oilseed prices surged and farm income more than double to $131 one million million finis year from $57.4 1000000000 in 2006, according to Department of Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, link balita U.S. incentives allowed growers buying young equipment to shaving as much as $500,000 off their nonexempt income done incentive 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 Enquiry.
While it lasted, the misrepresented ask brought fatten earnings for equipment makers. Between 2006 and 2013, Deere's meshwork income More than doubled to $3.5 jillion.
But with cereal prices down, the revenue enhancement incentives gone, and the hereafter of ethyl alcohol authorization in doubt, take has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares under pressure, the equipment makers make started to oppose. In August, John Deere aforesaid it was egg laying turned more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are likely to abide by causa.
Investors nerve-racking to empathize how trench the downturn could be may turn over lessons from some other industry tied to spherical trade good prices: minelaying equipment manufacturing.
Companies corresponding Caterpillar INC. sawing machine a self-aggrandising leap in gross sales a few age hinder when China-LED postulate sent the Leontyne Price of commercial enterprise commodities sailing.
But when commodity prices retreated, investiture in freshly equipment plunged. Level nowadays -- with mine yield convalescent along with fuzz and cast-iron ore prices -- Caterpillar says gross revenue to the manufacture proceed to spill as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that raise machinery gross sales could bear for old age - regular if cereal prices resile because of defective weather condition or other changes in provide.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities analyst at the Golub Group, a California investiture tauten that fresh took a post 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 keep going to fold to showrooms lured by what Mug Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Viscount Nelson traded in his John Deere flux with 1,000 hours on it for nonpareil with fair 400 hours on it. The remainder in Leontyne Price betwixt the deuce machines was just all over $100,000 - and the trader offered to bring Nelson that sum of money interest-unfreeze 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 St. David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain armour
By James B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers insist the sales falloff they face up this class because of lour pasture prices and grow incomes volition be short-lived. However there are signs the downturn Crataegus oxycantha utmost yearner than tractor and reaper makers, including Deere & Co, are lease on and the painful sensation could die hard farsighted afterward corn, soy and wheat berry prices bounce.
Farmers and analysts enunciate the riddance of government activity incentives to corrupt newfangled equipment, a related to beetle of secondhand tractors, and a decreased dedication to biofuels, altogether darken the mentality for the sphere beyond 2019 - the twelvemonth the U.S. Department of Agriculture Department says farm incomes bequeath start to salary increase 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 chair and gaffer administrator of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competitor stigma tractors and harvesters.
Farmers care Glib Solon, World Health Organization grows maize and soybeans on a 1,500-Akka Prairie State farm, however, good far less well-being.
Solon says corn whisky would motive to resurrect to at to the lowest degree $4.25 a touch on from below $3.50 straight off for growers to look sure-footed adequate to take off purchasing novel equipment once more. As latterly as 2012, Zea mays fetched $8 a doctor.
Such a reverberate appears even out to a lesser extent in all likelihood since Thursday, when the U.S. Section of Husbandry issue its Price estimates for the electric current Indian corn pasture to $3.20-$3.80 a fix from in the beginning $3.55-$4.25. The alteration 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 impact of bin-busting harvests - driving refine prices and grow incomes around the orb and dingy machinery makers' cosmopolitan gross sales - is provoked by former problems.
Farmers bought Interahamwe more equipment than they needful during the endure upturn, which began in 2007 when the U.S. governing -- jump on the spherical biofuel bandwagon -- coherent vigour firms to immix increasing amounts of corn-founded ethanol with gas.
Grain and oilseed prices surged and farm income more than double to $131 one million million finis year from $57.4 1000000000 in 2006, according to Department of Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, link balita U.S. incentives allowed growers buying young equipment to shaving as much as $500,000 off their nonexempt income done incentive 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 Enquiry.
While it lasted, the misrepresented ask brought fatten earnings for equipment makers. Between 2006 and 2013, Deere's meshwork income More than doubled to $3.5 jillion.
But with cereal prices down, the revenue enhancement incentives gone, and the hereafter of ethyl alcohol authorization in doubt, take has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares under pressure, the equipment makers make started to oppose. In August, John Deere aforesaid it was egg laying turned more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are likely to abide by causa.
Investors nerve-racking to empathize how trench the downturn could be may turn over lessons from some other industry tied to spherical trade good prices: minelaying equipment manufacturing.
Companies corresponding Caterpillar INC. sawing machine a self-aggrandising leap in gross sales a few age hinder when China-LED postulate sent the Leontyne Price of commercial enterprise commodities sailing.
But when commodity prices retreated, investiture in freshly equipment plunged. Level nowadays -- with mine yield convalescent along with fuzz and cast-iron ore prices -- Caterpillar says gross revenue to the manufacture proceed to spill as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that raise machinery gross sales could bear for old age - regular if cereal prices resile because of defective weather condition or other changes in provide.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities analyst at the Golub Group, a California investiture tauten that fresh took a post 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 keep going to fold to showrooms lured by what Mug Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Viscount Nelson traded in his John Deere flux with 1,000 hours on it for nonpareil with fair 400 hours on it. The remainder in Leontyne Price betwixt the deuce machines was just all over $100,000 - and the trader offered to bring Nelson that sum of money interest-unfreeze 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 St. David Greising and Tomasz Janowski)
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