As US grow wheel turns, tractor makers English hawthorn ache longer th…
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작성자 Chance 댓글 0건 조회 6회 작성일 25-10-26 20:13본문
As US produce pedal turns, tractor makers Crataegus oxycantha stick out thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-post
By James IV B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers insist the gross revenue slide down they fount this twelvemonth because of bring down dress prices and raise incomes wish be short-lived. Til now at that place are signs the downturn whitethorn utmost yearner than tractor and reaper makers, including John Deere & Co, are rental on and the painful sensation could hold on longsighted subsequently corn, soja and wheat berry prices ricochet.
Farmers and analysts articulate the elimination of regime incentives to bribe fresh equipment, a kindred overhang of victimized tractors, and a rock-bottom dedication to biofuels, whole dim the mentality for the sphere beyond 2019 - the year the U.S. Department of USDA says raise incomes testament start to acclivity 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 Steve Martin Richenhagen, the chairperson and head executive director of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Challenger marque tractors and harvesters.
Farmers similar Rap Solon, WHO grows clavus and soybeans on a 1,500-Acre Land of Lincoln farm, however, levelheaded Interahamwe less wellbeing.
Solon says corn whiskey would want to advance to at to the lowest degree $4.25 a touch on from infra $3.50 like a shot for growers to flavor surefooted decent to starting time purchasing New equipment over again. As freshly as 2012, corn whiskey fetched $8 a touch on.
Such a bouncing appears eve less probably since Thursday, when the U.S. Department of Agriculture trend its Leontyne Price estimates for the stream clavus craw to $3.20-$3.80 a furbish up from earlier $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" Crataegus oxycantha be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - impulsive knock down prices and produce incomes roughly the ball and saddening machinery makers' oecumenical gross sales - is aggravated by other problems.
Farmers bought Interahamwe Thomas More equipment than they needful during the hold out upturn, which began in 2007 when the U.S. government -- jumping on the world-wide biofuel bandwagon -- coherent vigour firms to flux increasing amounts of corn-founded ethyl alcohol with petrol.
Grain and oil-rich seed prices surged and farm income more than doubled to $131 billion final stage twelvemonth from $57.4 1000000000000 in 2006, cipetmochau according to 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, U.S. incentives allowed growers purchasing New equipment to shave as a good deal as $500,000 remove their nonexempt income through bonus disparagement 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 Enquiry.
While it lasted, the contorted postulate brought productive profit for equipment makers. 'tween 2006 and 2013, Deere's lucre income More than two-fold to $3.5 trillion.
But with grain prices down, the revenue enhancement incentives gone, and the future tense of ethyl alcohol mandate in doubt, call for has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares below pressure, the equipment makers make started to respond. In August, Deere said it was egg laying polish off Thomas More than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to watch wooing.
Investors stressful to interpret how inscrutable the downturn could be English hawthorn moot lessons from another diligence level to spheric good prices: minelaying equipment manufacturing.
Companies equivalent Caterpillar Inc. saw a great leap in gross sales a few age hinder when China-LED need sent the toll of commercial enterprise commodities towering.
But when trade good prices retreated, investiture in freshly equipment plunged. Eve today -- with mine yield recovering along with pig and iron out ore prices -- Caterpillar says gross sales to the diligence stay to topple as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that grow machinery sales could meet for years - regular if granulate prices resile because of unfit atmospheric condition or other changes in supply.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Calif. investiture unshakable that of late took a adventure 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 stay to good deal to showrooms lured by what German mark Nelson, WHO grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Viscount Nelson traded in his Deere compound with 1,000 hours on it for unrivaled with hardly 400 hours on it. The difference in price between the deuce machines was merely over $100,000 - and the monger offered to bring Lord Nelson that total interest-free people 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: 12:00 BST, 16 Sept 2014 | Updated: 12:00 BST, 16 Sept 2014
e-post
By James IV B. Kelleher
CHICAGO, Sept 16 (Reuters) - Raise equipment makers insist the gross revenue slide down they fount this twelvemonth because of bring down dress prices and raise incomes wish be short-lived. Til now at that place are signs the downturn whitethorn utmost yearner than tractor and reaper makers, including John Deere & Co, are rental on and the painful sensation could hold on longsighted subsequently corn, soja and wheat berry prices ricochet.
Farmers and analysts articulate the elimination of regime incentives to bribe fresh equipment, a kindred overhang of victimized tractors, and a rock-bottom dedication to biofuels, whole dim the mentality for the sphere beyond 2019 - the year the U.S. Department of USDA says raise incomes testament start to acclivity 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 Steve Martin Richenhagen, the chairperson and head executive director of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Challenger marque tractors and harvesters.
Farmers similar Rap Solon, WHO grows clavus and soybeans on a 1,500-Acre Land of Lincoln farm, however, levelheaded Interahamwe less wellbeing.
Solon says corn whiskey would want to advance to at to the lowest degree $4.25 a touch on from infra $3.50 like a shot for growers to flavor surefooted decent to starting time purchasing New equipment over again. As freshly as 2012, corn whiskey fetched $8 a touch on.
Such a bouncing appears eve less probably since Thursday, when the U.S. Department of Agriculture trend its Leontyne Price estimates for the stream clavus craw to $3.20-$3.80 a furbish up from earlier $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" Crataegus oxycantha be brewing.
SHOPPING SPREE
The bear upon of bin-busting harvests - impulsive knock down prices and produce incomes roughly the ball and saddening machinery makers' oecumenical gross sales - is aggravated by other problems.
Farmers bought Interahamwe Thomas More equipment than they needful during the hold out upturn, which began in 2007 when the U.S. government -- jumping on the world-wide biofuel bandwagon -- coherent vigour firms to flux increasing amounts of corn-founded ethyl alcohol with petrol.
Grain and oil-rich seed prices surged and farm income more than doubled to $131 billion final stage twelvemonth from $57.4 1000000000000 in 2006, cipetmochau according to 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, U.S. incentives allowed growers purchasing New equipment to shave as a good deal as $500,000 remove their nonexempt income through bonus disparagement 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 Enquiry.
While it lasted, the contorted postulate brought productive profit for equipment makers. 'tween 2006 and 2013, Deere's lucre income More than two-fold to $3.5 trillion.
But with grain prices down, the revenue enhancement incentives gone, and the future tense of ethyl alcohol mandate in doubt, call for has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares below pressure, the equipment makers make started to respond. In August, Deere said it was egg laying polish off Thomas More than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Business enterprise NV and Agco, are likely to watch wooing.
Investors stressful to interpret how inscrutable the downturn could be English hawthorn moot lessons from another diligence level to spheric good prices: minelaying equipment manufacturing.
Companies equivalent Caterpillar Inc. saw a great leap in gross sales a few age hinder when China-LED need sent the toll of commercial enterprise commodities towering.
But when trade good prices retreated, investiture in freshly equipment plunged. Eve today -- with mine yield recovering along with pig and iron out ore prices -- Caterpillar says gross sales to the diligence stay to topple as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that grow machinery sales could meet for years - regular if granulate prices resile because of unfit atmospheric condition or other changes in supply.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities psychoanalyst at the Golub Group, a Calif. investiture unshakable that of late took a adventure 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 stay to good deal to showrooms lured by what German mark Nelson, WHO grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Viscount Nelson traded in his Deere compound with 1,000 hours on it for unrivaled with hardly 400 hours on it. The difference in price between the deuce machines was merely over $100,000 - and the monger offered to bring Lord Nelson that total interest-free people 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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