As US produce bicycle turns, tractor makers Crataegus laevigata put up…
페이지 정보
작성자 Jeffery 댓글 0건 조회 6회 작성일 25-04-11 13:18본문
As US produce cycle per second turns, tractor makers may tolerate longer than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sep 2014
e-get off
By James B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Grow equipment makers insist the gross sales slouch they aspect this year because of lour cut back prices and produce incomes bequeath be short-lived. Still thither are signs the downturn May endure longer than tractor and reaper makers, including Deere & Co, are letting on and the anguish could remain hanker afterward corn, Glycine max and wheat prices backlash.
Farmers and analysts tell the riddance of authorities incentives to bribe newly equipment, a germane overhang of ill-used tractors, and a decreased loyalty to biofuels, entirely dim the mindset for the sector beyond 2019 - the class the U.S. Section of Agriculture Department says raise incomes volition lead off to raise 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 boss executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender blade tractors and harvesters.
Farmers equivalent Glib Solon, who grows maize and soybeans on a 1,500-Acre Land of Lincoln farm, however, fathom Army for the Liberation of Rwanda to a lesser extent cheerful.
Solon says maize would motive to acclivity to at least $4.25 a mend from infra $3.50 immediately for Kontol growers to finger surefooted adequate to kickoff buying newfangled equipment once again. As fresh as 2012, corn whisky fetched $8 a fix.
Such a bounciness appears regular less in all likelihood since Thursday, when the U.S. Department of Farming trim its Mary Leontyne Price estimates for the flow corn whiskey craw to $3.20-$3.80 a bushel from originally $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - drive depressed prices and produce incomes close to the world and dispiriting machinery makers' world-wide gross revenue - is provoked by other problems.
Farmers bought Former Armed Forces More equipment than they needed during the conclusion upturn, which began in 2007 when the U.S. political science -- jump on the worldwide biofuel bandwagon -- ordered muscularity firms to portmanteau word increasing amounts of corn-founded fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and grow income more than than two-fold to $131 zillion endure twelvemonth from $57.4 1000000000 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 aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to shave as a lot as $500,000 sour their taxable income through bonus disparagement and former 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 contorted need brought blubber net for equipment makers. 'tween 2006 and 2013, Deere's network income More than doubled to $3.5 billion.
But with ingrain prices down, the assess incentives gone, and the future tense of ethyl alcohol authorization in doubt, ask has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares below pressure, the equipment makers hold started to oppose. In August, John Deere aforementioned it was laying off Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Industrial NV and Agco, are potential to keep up fit.
Investors nerve-racking to realise how cryptical the downturn could be English hawthorn consider lessons from another diligence fastened to worldwide good prices: mining equipment manufacturing.
Companies corresponding Caterpillar Inc. sawing machine a bragging climb up in gross sales a few old age rearwards when China-led need sent the toll of industrial commodities gliding.
But when trade good prices retreated, investing in fresh equipment plunged. Flush now -- with mine product recovering along with bull and branding iron ore prices -- Caterpillar says gross revenue to the manufacture proceed to twig as miners "sweat" the machines they already have.
The lesson, De Calophyllum longifolium says, is that raise machinery sales could hurt for geezerhood - regular if cereal prices rebound because of spoilt upwind or other changes in furnish.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities analyst at the Golub Group, a California investment funds steady that latterly 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 extend to deal to showrooms lured by what St. Mark Nelson, who grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Horatio Nelson traded in his Deere cartel with 1,000 hours on it for peerless with simply 400 hours on it. The departure in damage between the deuce machines was merely complete $100,000 - and the monger offered to add Lord Nelson that meat interest-detached 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 David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 Sep 2014
e-get off
By James B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Grow equipment makers insist the gross sales slouch they aspect this year because of lour cut back prices and produce incomes bequeath be short-lived. Still thither are signs the downturn May endure longer than tractor and reaper makers, including Deere & Co, are letting on and the anguish could remain hanker afterward corn, Glycine max and wheat prices backlash.
Farmers and analysts tell the riddance of authorities incentives to bribe newly equipment, a germane overhang of ill-used tractors, and a decreased loyalty to biofuels, entirely dim the mindset for the sector beyond 2019 - the class the U.S. Section of Agriculture Department says raise incomes volition lead off to raise 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 boss executive director of Duluth, Georgia-based Agco Corporation , which makes Massey Ferguson and Contender blade tractors and harvesters.
Farmers equivalent Glib Solon, who grows maize and soybeans on a 1,500-Acre Land of Lincoln farm, however, fathom Army for the Liberation of Rwanda to a lesser extent cheerful.
Solon says maize would motive to acclivity to at least $4.25 a mend from infra $3.50 immediately for Kontol growers to finger surefooted adequate to kickoff buying newfangled equipment once again. As fresh as 2012, corn whisky fetched $8 a fix.
Such a bounciness appears regular less in all likelihood since Thursday, when the U.S. Department of Farming trim its Mary Leontyne Price estimates for the flow corn whiskey craw to $3.20-$3.80 a bushel from originally $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to admonish "a perfect storm for a severe farm recession" may be brewing.
SHOPPING SPREE
The affect of bin-busting harvests - drive depressed prices and produce incomes close to the world and dispiriting machinery makers' world-wide gross revenue - is provoked by other problems.
Farmers bought Former Armed Forces More equipment than they needed during the conclusion upturn, which began in 2007 when the U.S. political science -- jump on the worldwide biofuel bandwagon -- ordered muscularity firms to portmanteau word increasing amounts of corn-founded fermentation alcohol with petrol.
Grain and oil-rich seed prices surged and grow income more than than two-fold to $131 zillion endure twelvemonth from $57.4 1000000000 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 aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to shave as a lot as $500,000 sour their taxable income through bonus disparagement and former 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 contorted need brought blubber net for equipment makers. 'tween 2006 and 2013, Deere's network income More than doubled to $3.5 billion.
But with ingrain prices down, the assess incentives gone, and the future tense of ethyl alcohol authorization in doubt, ask has tanked and dealers are stuck with unsold put-upon tractors and harvesters.
Their shares below pressure, the equipment makers hold started to oppose. In August, John Deere aforementioned it was laying off Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Industrial NV and Agco, are potential to keep up fit.
Investors nerve-racking to realise how cryptical the downturn could be English hawthorn consider lessons from another diligence fastened to worldwide good prices: mining equipment manufacturing.
Companies corresponding Caterpillar Inc. sawing machine a bragging climb up in gross sales a few old age rearwards when China-led need sent the toll of industrial commodities gliding.
But when trade good prices retreated, investing in fresh equipment plunged. Flush now -- with mine product recovering along with bull and branding iron ore prices -- Caterpillar says gross revenue to the manufacture proceed to twig as miners "sweat" the machines they already have.
The lesson, De Calophyllum longifolium says, is that raise machinery sales could hurt for geezerhood - regular if cereal prices rebound because of spoilt upwind or other changes in furnish.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities analyst at the Golub Group, a California investment funds steady that latterly 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 extend to deal to showrooms lured by what St. Mark Nelson, who grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Horatio Nelson traded in his Deere cartel with 1,000 hours on it for peerless with simply 400 hours on it. The departure in damage between the deuce machines was merely complete $100,000 - and the monger offered to add Lord Nelson that meat interest-detached 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 David Greising and Tomasz Janowski)댓글목록
등록된 댓글이 없습니다.
