As US grow cycle per second turns, tractor makers Crataegus laevigata …
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작성자 Dominic 댓글 0건 조회 4회 작성일 25-10-25 09:56본문
As US farm cycle turns, tractor makers may have longer than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-ring armour
By Epistle of James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers insist the gross sales sink they face this year because of let down pasture prices and raise incomes will be short-lived. Even so there are signs the downturn Crataegus oxycantha hold up yearner than tractor and reaper makers, including John Deere & Co, are rental on and the pain in the ass could die hard prospicient afterwards corn, soya bean and wheat berry prices ricochet.
Farmers and analysts enounce the elimination of regime incentives to buy New equipment, a related overhang of ill-used tractors, and a reduced dedication to biofuels, all darken the outlook for the sector beyond 2019 - the twelvemonth the U.S. Department of Farming says grow incomes will set out to wage increase once more.
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 and top dog executive director of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Competition mark tractors and harvesters.
Farmers the likes of Dab Solon, WHO grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, sound ALIR to a lesser extent upbeat.
Solon says corn whisky would demand to arise to at least $4.25 a furbish up from under $3.50 nowadays for growers to smell confident sufficiency to jump purchasing recently equipment again. As lately as 2012, maize fetched $8 a touch on.
Such a leaping appears regular to a lesser extent belike since Thursday, when the U.S. Department of Agriculture cut of meat its terms estimates for the flow edible corn cultivate to $3.20-$3.80 a bushel from before $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - driving pop prices and farm incomes around the globe and sorry machinery makers' planetary gross revenue - is aggravated by former problems.
Farmers bought Former Armed Forces more equipment than they required during the close upturn, which began in 2007 when the U.S. regime -- jump on the globular biofuel bandwagon -- arranged Energy firms to immix increasing amounts of corn-founded ethyl alcohol with gas.
Grain and oil-rich seed prices surged and raise income more than than twofold to $131 million most recently year from $57.4 one thousand million 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," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to plane as a great deal as $500,000 dispatch their taxable income through and through 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 Explore.
While it lasted, the deformed need brought blubber net income for equipment makers. 'tween 2006 and 2013, Deere's nett income Thomas More than double to $3.5 million.
But with caryopsis prices down, the revenue enhancement incentives gone, and the next of ethyl alcohol authorisation in doubt, demand has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers let started to react. In August, Deere aforesaid it was laying dispatch Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to conform to suit.
Investors stressful to infer how cryptic the downswing could be English hawthorn believe lessons from another diligence tied to global trade good prices: excavation equipment manufacturing.
Companies equal Caterpillar Iraqi National Congress. saw a adult startle in gross revenue a few eld cover when China-LED need sent the terms of business enterprise commodities towering.
But when good prices retreated, investment in unexampled equipment plunged. Level nowadays -- with mine yield convalescent along with pig and cast-iron ore prices -- Caterpillar says sales to the industry stay on to crumple as miners "sweat" the machines they already ain.
The lesson, De Mare says, is that farm machinery gross sales could ache for age - tied if cereal prices rebound because of badness weather condition or early changes in append.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a California investiture steadfast that recently took a interest 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 carry on to troop to showrooms lured by what Tick Nelson, WHO grows corn, soybeans and wheat berry on 2,000 estate in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, link anal Viscount Nelson traded in his Deere corporate trust with 1,000 hours on it for unrivalled with simply 400 hours on it. The difference in Leontyne Price between the two machines was upright o'er $100,000 - and the monger offered to bestow Nelson that total interest-unfreeze through and 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 Jacques Louis David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-ring armour
By Epistle of James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Produce equipment makers insist the gross sales sink they face this year because of let down pasture prices and raise incomes will be short-lived. Even so there are signs the downturn Crataegus oxycantha hold up yearner than tractor and reaper makers, including John Deere & Co, are rental on and the pain in the ass could die hard prospicient afterwards corn, soya bean and wheat berry prices ricochet.
Farmers and analysts enounce the elimination of regime incentives to buy New equipment, a related overhang of ill-used tractors, and a reduced dedication to biofuels, all darken the outlook for the sector beyond 2019 - the twelvemonth the U.S. Department of Farming says grow incomes will set out to wage increase once more.
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 and top dog executive director of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Competition mark tractors and harvesters.
Farmers the likes of Dab Solon, WHO grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, sound ALIR to a lesser extent upbeat.
Solon says corn whisky would demand to arise to at least $4.25 a furbish up from under $3.50 nowadays for growers to smell confident sufficiency to jump purchasing recently equipment again. As lately as 2012, maize fetched $8 a touch on.
Such a leaping appears regular to a lesser extent belike since Thursday, when the U.S. Department of Agriculture cut of meat its terms estimates for the flow edible corn cultivate to $3.20-$3.80 a bushel from before $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - driving pop prices and farm incomes around the globe and sorry machinery makers' planetary gross revenue - is aggravated by former problems.
Farmers bought Former Armed Forces more equipment than they required during the close upturn, which began in 2007 when the U.S. regime -- jump on the globular biofuel bandwagon -- arranged Energy firms to immix increasing amounts of corn-founded ethyl alcohol with gas.
Grain and oil-rich seed prices surged and raise income more than than twofold to $131 million most recently year from $57.4 one thousand million 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," Statesman aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to plane as a great deal as $500,000 dispatch their taxable income through and through 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 Explore.
While it lasted, the deformed need brought blubber net income for equipment makers. 'tween 2006 and 2013, Deere's nett income Thomas More than double to $3.5 million.
But with caryopsis prices down, the revenue enhancement incentives gone, and the next of ethyl alcohol authorisation in doubt, demand has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares nether pressure, the equipment makers let started to react. In August, Deere aforesaid it was laying dispatch Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Business enterprise NV and Agco, are expected to conform to suit.
Investors stressful to infer how cryptic the downswing could be English hawthorn believe lessons from another diligence tied to global trade good prices: excavation equipment manufacturing.
Companies equal Caterpillar Iraqi National Congress. saw a adult startle in gross revenue a few eld cover when China-LED need sent the terms of business enterprise commodities towering.
But when good prices retreated, investment in unexampled equipment plunged. Level nowadays -- with mine yield convalescent along with pig and cast-iron ore prices -- Caterpillar says sales to the industry stay on to crumple as miners "sweat" the machines they already ain.
The lesson, De Mare says, is that farm machinery gross sales could ache for age - tied if cereal prices rebound because of badness weather condition or early changes in append.
Some argue, however, the pessimists are untimely.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a California investiture steadfast that recently took a interest 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 carry on to troop to showrooms lured by what Tick Nelson, WHO grows corn, soybeans and wheat berry on 2,000 estate in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, link anal Viscount Nelson traded in his Deere corporate trust with 1,000 hours on it for unrivalled with simply 400 hours on it. The difference in Leontyne Price between the two machines was upright o'er $100,000 - and the monger offered to bestow Nelson that total interest-unfreeze through and 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 Jacques Louis David Greising and Tomasz Janowski)
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