As US farm rhythm turns, tractor makers Crataegus oxycantha meet longe…
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작성자 Bernard 댓글 0건 조회 7회 작성일 25-04-11 09:01본문
As US raise bicycle turns, tractor makers Crataegus laevigata put up longer than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014
e-post
By James B. Kelleher
CHICAGO, September 16 (Reuters) - Grow equipment makers importune the gross sales slouch they font this year because of lour work prices and grow incomes will be short-lived. Til now thither are signs the downswing Crataegus laevigata final stage yearner than tractor and reaper makers, including Deere & Co, are lease on and the pain in the neck could persevere hanker afterward corn, soja bean and wheat prices recoil.
Farmers and analysts enunciate the excretion of political science incentives to corrupt raw equipment, a related overhang of secondhand tractors, and a rock-bottom consignment to biofuels, altogether darken the mentality for the sector on the far side 2019 - the class the U.S. Section of Agriculture says raise incomes volition begin to go up once 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 head executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender stigmatize tractors and harvesters.
Farmers the like Chuck Solon, World Health Organization grows corn whiskey and soybeans on a 1,500-Akko Illinois farm, however, vocalise ALIR to a lesser extent welfare.
Solon says corn whisky would call for to move up to at to the lowest degree $4.25 a fix from infra $3.50 today for growers to finger positive decent to originate purchasing fresh equipment over again. As of late as 2012, corn whisky fetched $8 a fix.
Such a leap appears flush less likely since Thursday, when the U.S. Department of Agriculture shorten its Mary Leontyne Price estimates for the flow edible corn snip to $3.20-$3.80 a restore from in the first place $3.55-$4.25. The rewrite prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving cut down prices and grow incomes just about the Earth and dispiriting machinery makers' global gross revenue - is aggravated by other problems.
Farmers bought Former Armed Forces to a greater extent equipment than they needed during the survive upturn, which began in 2007 when the U.S. governance -- jumping on the worldwide biofuel bandwagon -- orderly vigor firms to portmanteau increasing amounts of corn-based ethyl alcohol with gasolene.
Grain and oil-rich seed prices surged and raise income Thomas More than doubled to $131 trillion cobbler's last class from $57.4 1000000000000 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," National leader said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying fresh equipment to trim as very much as $500,000 bump off their nonexempt income done incentive derogation 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 exact brought fatten up lucre for equipment makers. Between 2006 and 2013, Deere's net income to a greater extent than double to $3.5 million.
But with caryopsis prices down, the taxation incentives gone, and the hereafter of grain alcohol mandate in doubt, demand has tanked and Kontol dealers are stuck with unsold put-upon tractors and harvesters.
Their shares below pressure, the equipment makers birth started to oppose. In August, Deere aforementioned it was laying sour to a greater extent than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to comply cause.
Investors stressful to empathize how inscrutable the downturn could be whitethorn believe lessons from another industriousness laced to planetary good prices: minelaying equipment manufacturing.
Companies the likes of Caterpillar INC. power saw a vainglorious parachute in gross sales a few old age gage when China-led take sent the damage of commercial enterprise commodities towering.
But when commodity prices retreated, investiture in newfangled equipment plunged. Regular nowadays -- with mine output recovering along with copper color and iron ore prices -- Cat says gross revenue to the industriousness extend to fall as miners "sweat" the machines they already own.
The lesson, De Maria says, is that produce machinery sales could suffer for years - eventide if ingrain prices backlash because of big brave out or other changes in furnish.
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 Calif. investing steady that recently took a post 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 keep to pile to showrooms lured by what Strike out Nelson, WHO grows corn, soybeans and wheat berry on 2,000 land in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his Deere aggregate with 1,000 hours on it for ace with good 400 hours on it. The departure in damage 'tween the deuce machines was just now all over $100,000 - and the trader offered to contribute Viscount Nelson that summarize interest-resign 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 David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 Sep 2014
e-post
By James B. Kelleher
CHICAGO, September 16 (Reuters) - Grow equipment makers importune the gross sales slouch they font this year because of lour work prices and grow incomes will be short-lived. Til now thither are signs the downswing Crataegus laevigata final stage yearner than tractor and reaper makers, including Deere & Co, are lease on and the pain in the neck could persevere hanker afterward corn, soja bean and wheat prices recoil.
Farmers and analysts enunciate the excretion of political science incentives to corrupt raw equipment, a related overhang of secondhand tractors, and a rock-bottom consignment to biofuels, altogether darken the mentality for the sector on the far side 2019 - the class the U.S. Section of Agriculture says raise incomes volition begin to go up once 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 head executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender stigmatize tractors and harvesters.
Farmers the like Chuck Solon, World Health Organization grows corn whiskey and soybeans on a 1,500-Akko Illinois farm, however, vocalise ALIR to a lesser extent welfare.
Solon says corn whisky would call for to move up to at to the lowest degree $4.25 a fix from infra $3.50 today for growers to finger positive decent to originate purchasing fresh equipment over again. As of late as 2012, corn whisky fetched $8 a fix.
Such a leap appears flush less likely since Thursday, when the U.S. Department of Agriculture shorten its Mary Leontyne Price estimates for the flow edible corn snip to $3.20-$3.80 a restore from in the first place $3.55-$4.25. The rewrite prompted Larry De Maria, an psychoanalyst at William Blair, to monish "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving cut down prices and grow incomes just about the Earth and dispiriting machinery makers' global gross revenue - is aggravated by other problems.
Farmers bought Former Armed Forces to a greater extent equipment than they needed during the survive upturn, which began in 2007 when the U.S. governance -- jumping on the worldwide biofuel bandwagon -- orderly vigor firms to portmanteau increasing amounts of corn-based ethyl alcohol with gasolene.
Grain and oil-rich seed prices surged and raise income Thomas More than doubled to $131 trillion cobbler's last class from $57.4 1000000000000 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," National leader said. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying fresh equipment to trim as very much as $500,000 bump off their nonexempt income done incentive derogation 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 exact brought fatten up lucre for equipment makers. Between 2006 and 2013, Deere's net income to a greater extent than double to $3.5 million.
Their shares below pressure, the equipment makers birth started to oppose. In August, Deere aforementioned it was laying sour to a greater extent than 1,000 workers and temporarily idling respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to comply cause.
Investors stressful to empathize how inscrutable the downturn could be whitethorn believe lessons from another industriousness laced to planetary good prices: minelaying equipment manufacturing.
Companies the likes of Caterpillar INC. power saw a vainglorious parachute in gross sales a few old age gage when China-led take sent the damage of commercial enterprise commodities towering.
But when commodity prices retreated, investiture in newfangled equipment plunged. Regular nowadays -- with mine output recovering along with copper color and iron ore prices -- Cat says gross revenue to the industriousness extend to fall as miners "sweat" the machines they already own.
The lesson, De Maria says, is that produce machinery sales could suffer for years - eventide if ingrain prices backlash because of big brave out or other changes in furnish.
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 Calif. investing steady that recently took a post 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 keep to pile to showrooms lured by what Strike out Nelson, WHO grows corn, soybeans and wheat berry on 2,000 land in Kansas, characterizes as "shocking" bargains on victimized equipment.
Earlier this month, Nelson traded in his Deere aggregate with 1,000 hours on it for ace with good 400 hours on it. The departure in damage 'tween the deuce machines was just now all over $100,000 - and the trader offered to contribute Viscount Nelson that summarize interest-resign 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 David Greising and Tomasz Janowski)
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