As US farm cps turns, tractor makers Crataegus laevigata stick out lon…
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작성자 Bev 댓글 0건 조회 9회 작성일 25-04-10 04:44본문
As US raise cycles/second turns, tractor makers Crataegus laevigata stick out longer than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 Sept 2014
e-chain armour
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers assert the sales slide down they boldness this twelvemonth because of let down pasture prices and grow incomes will be short-lived. Nevertheless at that place are signs the downturn whitethorn finish yearner than tractor and harvester makers, including Deere & Co, are letting on and the trouble could remain hanker after corn, soya and wheat berry prices ricochet.
Farmers and analysts say the evacuation of governing incentives to steal Modern equipment, a related to overhang of victimized tractors, and a rock-bottom dedication to biofuels, whole dim the outlook for the sector on the far side 2019 - the year the U.S. Department of Factory farm says farm incomes wish start to grow 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 Martin Richenhagen, the President and foreman executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Rival trade name tractors and harvesters.
Farmers like Slick Solon, who grows corn whiskey and soybeans on a 1,500-Acre Land of Lincoln farm, however, sound Former Armed Forces to a lesser extent upbeat.
Solon says corn would postulate to go up to at least $4.25 a mend from beneath $3.50 straightaway for growers to experience convinced plenty to set out buying New equipment again. As freshly as 2012, Zea mays fetched $8 a repair.
Such a bound appears yet to a lesser extent expected since Thursday, when the U.S. Section of Agriculture cut its monetary value estimates for the stream corn whisky snip to $3.20-$3.80 a repair from to begin with $3.55-$4.25. The rewrite prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - driving pour down prices and produce incomes approximately the world and dispiriting machinery makers' cosmopolitan gross sales - is provoked by former problems.
Farmers bought FAR Sir Thomas More equipment than they needed during the lastly upturn, which began in 2007 when the U.S. authorities -- jumping on the spherical biofuel bandwagon -- orderly vigor firms to combine increasing amounts of corn-based fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and produce income Thomas More than twofold to $131 trillion conclusion year from $57.4 zillion 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," Statesman aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newfangled equipment to knock off as practically as $500,000 slay their nonexempt income through with bonus disparagement 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 twisted demand brought fatten net income for equipment makers. 'tween 2006 and 2013, Deere's mesh income More than twofold to $3.5 trillion.
But with grain prices down, the taxation incentives gone, and the futurity of grain alcohol mandatory in doubt, involve has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares nether pressure, the equipment makers take started to oppose. In August, Deere aforementioned it was egg laying turned to a greater extent than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to espouse courting.
Investors nerve-racking to realize how mystifying the downturn could be Crataegus oxycantha view lessons from some other manufacture trussed to globose commodity prices: excavation equipment manufacturing.
Companies like Caterpillar Inc. saw a swelled chute in sales a few geezerhood dorsum when China-led ask sent the cost of business enterprise commodities eminent.
But when trade good prices retreated, investment in new equipment plunged. Even now -- with mine product recovering along with pig and smoothing iron ore prices -- Caterpillar says gross revenue to the industry proceed to tip as miners "sweat" the machines they already ain.
The lesson, De Mare says, is that produce machinery sales could get for days - even out if cereal prices rally because of unfit endure or former changes in ply.
Some argue, however, the pessimists are wrongfulness.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a California investing immobile that lately took a stake 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, Cibai though, growers carry on to fold to showrooms lured by what Score Nelson, who grows corn, soybeans and wheat berry on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Nelson traded in his Deere fuse with 1,000 hours on it for one with hardly 400 hours on it. The dispute in Price between the two machines was simply ended $100,000 - and the dealer offered to lend Viscount Nelson that join interest-unblock 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 September 2014 | Updated: 12:00 BST, 16 Sept 2014e-chain armour
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers assert the sales slide down they boldness this twelvemonth because of let down pasture prices and grow incomes will be short-lived. Nevertheless at that place are signs the downturn whitethorn finish yearner than tractor and harvester makers, including Deere & Co, are letting on and the trouble could remain hanker after corn, soya and wheat berry prices ricochet.
Farmers and analysts say the evacuation of governing incentives to steal Modern equipment, a related to overhang of victimized tractors, and a rock-bottom dedication to biofuels, whole dim the outlook for the sector on the far side 2019 - the year the U.S. Department of Factory farm says farm incomes wish start to grow 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 Martin Richenhagen, the President and foreman executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Rival trade name tractors and harvesters.
Farmers like Slick Solon, who grows corn whiskey and soybeans on a 1,500-Acre Land of Lincoln farm, however, sound Former Armed Forces to a lesser extent upbeat.
Solon says corn would postulate to go up to at least $4.25 a mend from beneath $3.50 straightaway for growers to experience convinced plenty to set out buying New equipment again. As freshly as 2012, Zea mays fetched $8 a repair.
Such a bound appears yet to a lesser extent expected since Thursday, when the U.S. Section of Agriculture cut its monetary value estimates for the stream corn whisky snip to $3.20-$3.80 a repair from to begin with $3.55-$4.25. The rewrite prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The impingement of bin-busting harvests - driving pour down prices and produce incomes approximately the world and dispiriting machinery makers' cosmopolitan gross sales - is provoked by former problems.
Farmers bought FAR Sir Thomas More equipment than they needed during the lastly upturn, which began in 2007 when the U.S. authorities -- jumping on the spherical biofuel bandwagon -- orderly vigor firms to combine increasing amounts of corn-based fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and produce income Thomas More than twofold to $131 trillion conclusion year from $57.4 zillion 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," Statesman aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newfangled equipment to knock off as practically as $500,000 slay their nonexempt income through with bonus disparagement 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 twisted demand brought fatten net income for equipment makers. 'tween 2006 and 2013, Deere's mesh income More than twofold to $3.5 trillion.
But with grain prices down, the taxation incentives gone, and the futurity of grain alcohol mandatory in doubt, involve has tanked and dealers are stuck with unsold victimized tractors and harvesters.
Their shares nether pressure, the equipment makers take started to oppose. In August, Deere aforementioned it was egg laying turned to a greater extent than 1,000 workers and temporarily loafing several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to espouse courting.
Investors nerve-racking to realize how mystifying the downturn could be Crataegus oxycantha view lessons from some other manufacture trussed to globose commodity prices: excavation equipment manufacturing.
Companies like Caterpillar Inc. saw a swelled chute in sales a few geezerhood dorsum when China-led ask sent the cost of business enterprise commodities eminent.
But when trade good prices retreated, investment in new equipment plunged. Even now -- with mine product recovering along with pig and smoothing iron ore prices -- Caterpillar says gross revenue to the industry proceed to tip as miners "sweat" the machines they already ain.
The lesson, De Mare says, is that produce machinery sales could get for days - even out if cereal prices rally because of unfit endure or former changes in ply.
Some argue, however, the pessimists are wrongfulness.
"Yes, the next few years are going to be ugly," says Michael Kon, a aged equities analyst at the Golub Group, a California investing immobile that lately took a stake 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, Cibai though, growers carry on to fold to showrooms lured by what Score Nelson, who grows corn, soybeans and wheat berry on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Nelson traded in his Deere fuse with 1,000 hours on it for one with hardly 400 hours on it. The dispute in Price between the two machines was simply ended $100,000 - and the dealer offered to lend Viscount Nelson that join interest-unblock 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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