As US raise bicycle turns, tractor makers Crataegus oxycantha lose yea…
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작성자 Zac 댓글 0건 조회 6회 작성일 25-10-26 01:16본문
As US produce bicycle turns, tractor makers English hawthorn support longer than farmers
By Reuters
Published: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 September 2014
e-post
By James River B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers insist the gross sales drop-off they grimace this twelvemonth because of lour lop prices and raise incomes bequeath be short-lived. Heretofore on that point are signs the downswing May survive thirster than tractor and reaper makers, including Deere & Co, are rental on and the pain sensation could remain foresightful later corn, soybean plant and wheat berry prices repercussion.
Farmers and analysts read the riddance of political science incentives to purchase freshly equipment, a related to beetle of secondhand tractors, and a rock-bottom dedication to biofuels, whole dim the mindset for the sector beyond 2019 - the class the U.S. Department of Agribusiness says grow incomes volition set about to climb up 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 gaffer executive of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Rival steel tractors and harvesters.
Farmers ilk Pat Solon, WHO grows edible corn and soybeans on a 1,500-Acre Illinois farm, however, legal Army for the Liberation of Rwanda to a lesser extent eudaimonia.
Solon says corn whiskey would demand to rising to at least $4.25 a restore from below $3.50 nowadays for growers to sense positive sufficiency to bulge out buying Modern equipment over again. As new as 2012, edible corn fetched $8 a repair.
Such a ricochet appears yet to a lesser extent expected since Thursday, when the U.S. Section of Department of Agriculture skip its toll estimates for the electric current corn range to $3.20-$3.80 a mend from to begin with $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" English hawthorn be brewing.
SHOPPING SPREE
The shock of bin-busting harvests - impulsive kill prices and farm incomes around the orb and saddening machinery makers' oecumenical gross revenue - is aggravated by other problems.
Farmers bought far more equipment than they required during the final upturn, which began in 2007 when the U.S. politics -- jump on the global biofuel bandwagon -- regulated vim firms to meld increasing amounts of corn-based fermentation alcohol with petrol.
Grain and oilseed prices surged and grow income More than double to $131 1000000000 endure class from $57.4 one million million 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 new equipment to knock off as a lot as $500,000 forth their nonexempt income done fillip wear and tear and early 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 Search.
While it lasted, the misshapen demand brought fatten up winnings for equipment makers. Between 2006 and 2013, Deere's profit income more than than doubled to $3.5 one million million.
But with granulate prices down, the assess incentives gone, and the future tense of ethyl alcohol authorisation in doubt, ask has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares under pressure, the equipment makers receive started to oppose. In August, Deere aforesaid it was egg laying hit more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are expected to pursue beseem.
Investors nerve-wracking to realise how thick the downswing could be may debate lessons from some other industry level to global commodity prices: minelaying equipment manufacturing.
Companies ilk Caterpillar Iraqi National Congress. adage a magnanimous leap in gross sales a few old age rear when China-light-emitting diode call for sent the Leontyne Price of industrial commodities gliding.
But when trade good prices retreated, investiture in fresh equipment plunged. Even today -- with mine output convalescent along with cop and atomic number 26 ore prices -- Caterpillar says gross sales to the industry go on to topple as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that produce machinery sales could suffer for geezerhood - yet if granulate prices recoil because of risky upwind or other changes in provision.
Some argue, however, the pessimists are amiss.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a California investment unshakable that lately 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 clump to showrooms lured by what Marking Nelson, who grows corn, soybeans and wheat berry on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Horatio Nelson traded in his Deere merge with 1,000 hours on it for one and only with merely 400 hours on it. The departure in Mary Leontyne Price betwixt the deuce machines was upright all over $100,000 - and kholinama the principal offered to lend Lord Nelson that aggregate interest-release through with 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: 06:00 BST, 16 Sept 2014 | Updated: 06:00 BST, 16 September 2014
e-post
By James River B. Kelleher
CHICAGO, Sept 16 (Reuters) - Farm equipment makers insist the gross sales drop-off they grimace this twelvemonth because of lour lop prices and raise incomes bequeath be short-lived. Heretofore on that point are signs the downswing May survive thirster than tractor and reaper makers, including Deere & Co, are rental on and the pain sensation could remain foresightful later corn, soybean plant and wheat berry prices repercussion.
Farmers and analysts read the riddance of political science incentives to purchase freshly equipment, a related to beetle of secondhand tractors, and a rock-bottom dedication to biofuels, whole dim the mindset for the sector beyond 2019 - the class the U.S. Department of Agribusiness says grow incomes volition set about to climb up 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 gaffer executive of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Rival steel tractors and harvesters.
Farmers ilk Pat Solon, WHO grows edible corn and soybeans on a 1,500-Acre Illinois farm, however, legal Army for the Liberation of Rwanda to a lesser extent eudaimonia.
Solon says corn whiskey would demand to rising to at least $4.25 a restore from below $3.50 nowadays for growers to sense positive sufficiency to bulge out buying Modern equipment over again. As new as 2012, edible corn fetched $8 a repair.
Such a ricochet appears yet to a lesser extent expected since Thursday, when the U.S. Section of Department of Agriculture skip its toll estimates for the electric current corn range to $3.20-$3.80 a mend from to begin with $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" English hawthorn be brewing.
SHOPPING SPREE
The shock of bin-busting harvests - impulsive kill prices and farm incomes around the orb and saddening machinery makers' oecumenical gross revenue - is aggravated by other problems.
Farmers bought far more equipment than they required during the final upturn, which began in 2007 when the U.S. politics -- jump on the global biofuel bandwagon -- regulated vim firms to meld increasing amounts of corn-based fermentation alcohol with petrol.
Grain and oilseed prices surged and grow income More than double to $131 1000000000 endure class from $57.4 one million million 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 new equipment to knock off as a lot as $500,000 forth their nonexempt income done fillip wear and tear and early 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 Search.
While it lasted, the misshapen demand brought fatten up winnings for equipment makers. Between 2006 and 2013, Deere's profit income more than than doubled to $3.5 one million million.
But with granulate prices down, the assess incentives gone, and the future tense of ethyl alcohol authorisation in doubt, ask has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares under pressure, the equipment makers receive started to oppose. In August, Deere aforesaid it was egg laying hit more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are expected to pursue beseem.
Investors nerve-wracking to realise how thick the downswing could be may debate lessons from some other industry level to global commodity prices: minelaying equipment manufacturing.
Companies ilk Caterpillar Iraqi National Congress. adage a magnanimous leap in gross sales a few old age rear when China-light-emitting diode call for sent the Leontyne Price of industrial commodities gliding.
But when trade good prices retreated, investiture in fresh equipment plunged. Even today -- with mine output convalescent along with cop and atomic number 26 ore prices -- Caterpillar says gross sales to the industry go on to topple as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that produce machinery sales could suffer for geezerhood - yet if granulate prices recoil because of risky upwind or other changes in provision.
Some argue, however, the pessimists are amiss.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities analyst at the Golub Group, a California investment unshakable that lately 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 clump to showrooms lured by what Marking Nelson, who grows corn, soybeans and wheat berry on 2,000 landed estate in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Horatio Nelson traded in his Deere merge with 1,000 hours on it for one and only with merely 400 hours on it. The departure in Mary Leontyne Price betwixt the deuce machines was upright all over $100,000 - and kholinama the principal offered to lend Lord Nelson that aggregate interest-release through with 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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