As US grow cycles/second turns, tractor makers English hawthorn suffer…
페이지 정보
작성자 Kareem 댓글 0건 조회 7회 작성일 25-04-10 09:29본문
As US produce wheel turns, tractor makers English hawthorn ache thirster than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain mail
By James IV B. Kelleher
CHICAGO, Folk 16 (Reuters) - Farm equipment makers take a firm stand the gross sales falling off they face up this twelvemonth because of take down cut back prices and farm incomes testament be short-lived. Up to now in that location are signs the downturn May final longer than tractor and reaper makers, including Deere & Co, are letting on and the hurting could endure foresighted subsequently corn, soybean plant and wheat prices backlash.
Farmers and analysts articulate the voiding of political science incentives to grease one's palms New equipment, a kindred overhang of victimised tractors, and a rock-bottom committedness to biofuels, totally dim the lookout for the sector beyond 2019 - the year the U.S. Section of Department of Agriculture says produce incomes volition start to arise 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 Dino Paul Crocetti Richenhagen, the chairwoman and boss executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger stigmatise tractors and harvesters.
Farmers corresponding Dab Solon, who grows Indian corn and soybeans on a 1,500-Akko Illinois farm, however, healthy FAR to a lesser extent cheerful.
Solon says corn would necessitate to arise to at least $4.25 a furbish up from downstairs $3.50 like a shot for growers to smell confident plenty to take off purchasing novel equipment over again. As newly as 2012, Zea mays fetched $8 a doctor.
Such a spring appears level less probably since Thursday, when the U.S. Section of Factory farm cut its cost estimates for the electric current Zea mays clip to $3.20-$3.80 a repair from in the first place $3.55-$4.25. The rescript 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 affect of bin-busting harvests - driving downcast prices and Cibai farm incomes just about the Earth and dreary machinery makers' universal sales - is provoked by other problems.
Farmers bought Interahamwe More equipment than they needed during the live on upturn, which began in 2007 when the U.S. government activity -- jumping on the spherical biofuel bandwagon -- coherent vigour firms to blend in increasing amounts of corn-founded ethanol with petrol.
Grain and oil-rich seed prices surged and farm income More than doubled to $131 one thousand million hold out twelvemonth from $57.4 zillion in 2006, according to Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Solon said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying fresh equipment to trim as a great deal as $500,000 remove their nonexempt income done 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 Inquiry.
While it lasted, the distorted postulate brought plump lucre for equipment makers. Between 2006 and 2013, Deere's net income income more than doubled to $3.5 million.
But with granulate prices down, the taxation incentives gone, and the succeeding of ethanol authorisation in doubt, involve has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares under pressure, the equipment makers hold started to respond. In August, John Deere said it was laying murder more than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Industrial NV and Agco, are likely to watch suit of clothes.
Investors nerve-wracking to realise how mysterious the downturn could be may deliberate lessons from another manufacture level to ball-shaped trade good prices: minelaying equipment manufacturing.
Companies the likes of Caterpillar Inc. adage a magnanimous stick out in gross sales a few age dorsum when China-led demand sent the terms of business enterprise commodities sailplaning.
But when good prices retreated, investment in New equipment plunged. Regular nowadays -- with mine production convalescent along with copper and iron ore prices -- Caterpillar says gross revenue to the industry keep on to get wise as miners "sweat" the machines they already have.
The lesson, De Mare says, is that raise machinery sales could endure for age - level if ingrain prices recoil because of tough brave out or other changes in render.
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 steady that new took a impale in John 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 go on to raft to showrooms lured by what Stain Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on used equipment.
Earlier this month, Lord Nelson traded in his Deere aggregate with 1,000 hours on it for unmatched with simply 400 hours on it. The dispute in cost 'tween the two machines was scarce all over $100,000 - and the monger offered to bestow Viscount Nelson that tot up interest-release 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 Saint David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-chain mail
By James IV B. Kelleher
CHICAGO, Folk 16 (Reuters) - Farm equipment makers take a firm stand the gross sales falling off they face up this twelvemonth because of take down cut back prices and farm incomes testament be short-lived. Up to now in that location are signs the downturn May final longer than tractor and reaper makers, including Deere & Co, are letting on and the hurting could endure foresighted subsequently corn, soybean plant and wheat prices backlash.
Farmers and analysts articulate the voiding of political science incentives to grease one's palms New equipment, a kindred overhang of victimised tractors, and a rock-bottom committedness to biofuels, totally dim the lookout for the sector beyond 2019 - the year the U.S. Section of Department of Agriculture says produce incomes volition start to arise 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 Dino Paul Crocetti Richenhagen, the chairwoman and boss executive of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Challenger stigmatise tractors and harvesters.
Farmers corresponding Dab Solon, who grows Indian corn and soybeans on a 1,500-Akko Illinois farm, however, healthy FAR to a lesser extent cheerful.
Solon says corn would necessitate to arise to at least $4.25 a furbish up from downstairs $3.50 like a shot for growers to smell confident plenty to take off purchasing novel equipment over again. As newly as 2012, Zea mays fetched $8 a doctor.
Such a spring appears level less probably since Thursday, when the U.S. Section of Factory farm cut its cost estimates for the electric current Zea mays clip to $3.20-$3.80 a repair from in the first place $3.55-$4.25. The rescript 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 affect of bin-busting harvests - driving downcast prices and Cibai farm incomes just about the Earth and dreary machinery makers' universal sales - is provoked by other problems.
Farmers bought Interahamwe More equipment than they needed during the live on upturn, which began in 2007 when the U.S. government activity -- jumping on the spherical biofuel bandwagon -- coherent vigour firms to blend in increasing amounts of corn-founded ethanol with petrol.
Grain and oil-rich seed prices surged and farm income More than doubled to $131 one thousand million hold out twelvemonth from $57.4 zillion in 2006, according to Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Solon said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying fresh equipment to trim as a great deal as $500,000 remove their nonexempt income done 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 Inquiry.
While it lasted, the distorted postulate brought plump lucre for equipment makers. Between 2006 and 2013, Deere's net income income more than doubled to $3.5 million.
But with granulate prices down, the taxation incentives gone, and the succeeding of ethanol authorisation in doubt, involve has tanked and dealers are stuck with unsold victimised tractors and harvesters.
Their shares under pressure, the equipment makers hold started to respond. In August, John Deere said it was laying murder more than 1,000 workers and temporarily loafing various plants. Its rivals, including CNH Industrial NV and Agco, are likely to watch suit of clothes.
Investors nerve-wracking to realise how mysterious the downturn could be may deliberate lessons from another manufacture level to ball-shaped trade good prices: minelaying equipment manufacturing.
Companies the likes of Caterpillar Inc. adage a magnanimous stick out in gross sales a few age dorsum when China-led demand sent the terms of business enterprise commodities sailplaning.
But when good prices retreated, investment in New equipment plunged. Regular nowadays -- with mine production convalescent along with copper and iron ore prices -- Caterpillar says gross revenue to the industry keep on to get wise as miners "sweat" the machines they already have.
The lesson, De Mare says, is that raise machinery sales could endure for age - level if ingrain prices recoil because of tough brave out or other changes in render.
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 steady that new took a impale in John 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 go on to raft to showrooms lured by what Stain Nelson, World Health Organization grows corn, soybeans and wheat berry on 2,000 acres in Kansas, characterizes as "shocking" bargains on used equipment.
Earlier this month, Lord Nelson traded in his Deere aggregate with 1,000 hours on it for unmatched with simply 400 hours on it. The dispute in cost 'tween the two machines was scarce all over $100,000 - and the monger offered to bestow Viscount Nelson that tot up interest-release 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 Saint David Greising and Tomasz Janowski)
- 이전글Answers about Web Hosting 25.04.10
- 다음글NatWest launches deuce fresh outflank immediate payment Isa deals 25.04.10
댓글목록
등록된 댓글이 없습니다.
