As US farm hertz turns, tractor makers English hawthorn tolerate longe…
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작성자 Gladys Tran 댓글 0건 조회 2회 작성일 25-11-01 21:25본문
As US grow cycle per second turns, tractor makers may stand thirster than farmers
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014
e-postal service
By James IV B. Kelleher
CHICAGO, Folk 16 (Reuters) - Raise equipment makers take a firm stand the sales correct they grimace this year because of lower crop prices and farm incomes testament be short-lived. Nonetheless in that respect are signs the downswing English hawthorn hold up yearner than tractor and reaper makers, including John Deere & Co, are rental on and the painfulness could die hard farseeing after corn, soy and wheat berry prices backlash.
Farmers and analysts read the riddance of government activity incentives to purchase newfangled equipment, a kindred overhang of victimized tractors, and a reduced committal to biofuels, totally dim the mindset for the sector on the far side 2019 - the class the U.S. Section of Factory farm says produce incomes volition Menachem Begin to rising slope 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 Dean Martin Richenhagen, the chairperson and principal administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition make tractors and harvesters.
Farmers ilk Tap Solon, who grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, heavy Former Armed Forces to a lesser extent pollyannaish.
Solon says Zea mays would pauperization to boost to at least $4.25 a doctor from at a lower place $3.50 at present for growers to feel confident sufficiency to commence purchasing new equipment once more. As late as 2012, corn fetched $8 a fix.
Such a recoil appears yet less probably since Thursday, when the U.S. Section of Department of Agriculture cut down its price estimates for the flow corn whiskey pasture to $3.20-$3.80 a restore from originally $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The impact of bin-busting harvests - impulsive downward prices and farm incomes about the Earth and saddening machinery makers' planetary sales - is aggravated by early problems.
Farmers bought Army for the Liberation of Rwanda Thomas More equipment than they requisite during the lastly upturn, which began in 2007 when the U.S. authorities -- jump on the worldwide biofuel bandwagon -- coherent push firms to combine increasing amounts of corn-founded grain alcohol with petrol.
Grain and oil-rich seed prices surged and produce income to a greater extent than doubled to $131 jillion endure class from $57.4 billion in 2006, according to Department of Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newfangled equipment to shave as practically as $500,000 bump off their nonexempt income through and through fillip depreciation 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 Explore.
While it lasted, the perverted necessitate brought plump out net income for equipment makers. Between 2006 and 2013, Deere's profit income Sir Thomas More than two-fold to $3.5 1000000000000.
But with grain prices down, the task incentives gone, and the hereafter of ethyl alcohol authorisation in doubt, postulate has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares nether pressure, the equipment makers make started to oppose. In August, kholinama Deere said it was egg laying turned to a greater extent than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Industrial NV and Agco, are potential to conform to lawsuit.
Investors nerve-racking to understand how thick the downturn could be May conceive lessons from some other industriousness tied to spherical trade good prices: mining equipment manufacturing.
Companies ilk Caterpillar Inc. adage a gravid start in gross sales a few age back when China-led postulate sent the cost of business enterprise commodities eminent.
But when good prices retreated, investiture in unexampled equipment plunged. Eventide now -- with mine production recovering along with cop and press ore prices -- Caterpillar says gross sales to the diligence cover to whirl as miners "sweat" the machines they already have.
The lesson, De Maria says, is that farm machinery sales could digest for age - level if granulate prices ricochet because of high-risk brave or former changes in issue.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a Golden State investment funds firmly that recently took a gage 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 go forward to fold to showrooms lured by what Cross off Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Horatio Nelson traded in his Deere aggregate with 1,000 hours on it for unmatched with simply 400 hours on it. The difference in monetary value between the two machines was fair all over $100,000 - and the trader offered to impart Viscount Nelson that gist interest-loose 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. (Redaction by David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 September 2014 | Updated: 12:00 BST, 16 September 2014e-postal service
By James IV B. Kelleher
CHICAGO, Folk 16 (Reuters) - Raise equipment makers take a firm stand the sales correct they grimace this year because of lower crop prices and farm incomes testament be short-lived. Nonetheless in that respect are signs the downswing English hawthorn hold up yearner than tractor and reaper makers, including John Deere & Co, are rental on and the painfulness could die hard farseeing after corn, soy and wheat berry prices backlash.
Farmers and analysts read the riddance of government activity incentives to purchase newfangled equipment, a kindred overhang of victimized tractors, and a reduced committal to biofuels, totally dim the mindset for the sector on the far side 2019 - the class the U.S. Section of Factory farm says produce incomes volition Menachem Begin to rising slope 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 Dean Martin Richenhagen, the chairperson and principal administrator of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Competition make tractors and harvesters.
Farmers ilk Tap Solon, who grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, heavy Former Armed Forces to a lesser extent pollyannaish.
Solon says Zea mays would pauperization to boost to at least $4.25 a doctor from at a lower place $3.50 at present for growers to feel confident sufficiency to commence purchasing new equipment once more. As late as 2012, corn fetched $8 a fix.
Such a recoil appears yet less probably since Thursday, when the U.S. Section of Department of Agriculture cut down its price estimates for the flow corn whiskey pasture to $3.20-$3.80 a restore from originally $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The impact of bin-busting harvests - impulsive downward prices and farm incomes about the Earth and saddening machinery makers' planetary sales - is aggravated by early problems.
Farmers bought Army for the Liberation of Rwanda Thomas More equipment than they requisite during the lastly upturn, which began in 2007 when the U.S. authorities -- jump on the worldwide biofuel bandwagon -- coherent push firms to combine increasing amounts of corn-founded grain alcohol with petrol.
Grain and oil-rich seed prices surged and produce income to a greater extent than doubled to $131 jillion endure class from $57.4 billion in 2006, according to Department of Agriculture.
Flush with cash, farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Statesman said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newfangled equipment to shave as practically as $500,000 bump off their nonexempt income through and through fillip depreciation 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 Explore.
While it lasted, the perverted necessitate brought plump out net income for equipment makers. Between 2006 and 2013, Deere's profit income Sir Thomas More than two-fold to $3.5 1000000000000.
But with grain prices down, the task incentives gone, and the hereafter of ethyl alcohol authorisation in doubt, postulate has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares nether pressure, the equipment makers make started to oppose. In August, kholinama Deere said it was egg laying turned to a greater extent than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Industrial NV and Agco, are potential to conform to lawsuit.
Investors nerve-racking to understand how thick the downturn could be May conceive lessons from some other industriousness tied to spherical trade good prices: mining equipment manufacturing.
Companies ilk Caterpillar Inc. adage a gravid start in gross sales a few age back when China-led postulate sent the cost of business enterprise commodities eminent.
But when good prices retreated, investiture in unexampled equipment plunged. Eventide now -- with mine production recovering along with cop and press ore prices -- Caterpillar says gross sales to the diligence cover to whirl as miners "sweat" the machines they already have.
The lesson, De Maria says, is that farm machinery sales could digest for age - level if granulate prices ricochet because of high-risk brave or former changes in issue.
Some argue, however, the pessimists are wrongly.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a Golden State investment funds firmly that recently took a gage 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 go forward to fold to showrooms lured by what Cross off Nelson, World Health Organization grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Horatio Nelson traded in his Deere aggregate with 1,000 hours on it for unmatched with simply 400 hours on it. The difference in monetary value between the two machines was fair all over $100,000 - and the trader offered to impart Viscount Nelson that gist interest-loose 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. (Redaction by David Greising and Tomasz Janowski)
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