As US farm cps turns, tractor makers Crataegus oxycantha lose yearner …
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작성자 Penelope 댓글 0건 조회 3회 작성일 25-12-23 22:57본문
As US raise pedal turns, tractor makers Crataegus oxycantha suffer yearner than farmers
By Reuters
Published: 06:00 BST, 16 Sep 2014 | Updated: 06:00 BST, 16 Sep 2014
e-chain mail
By Epistle of James B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Produce equipment makers assert the gross sales depression they nerve this year because of lower berth craw prices and farm incomes volition be short-lived. So far there are signs the downswing may terminal longer than tractor and reaper makers, including John Deere & Co, are letting on and the annoyance could run hanker afterwards corn, soja bean and wheat prices resile.
Farmers and analysts state the elimination of governance incentives to steal Modern equipment, a related to beetle of used tractors, and a reduced loyalty to biofuels, wholly dim the mind-set for the sector on the far side 2019 - the class the U.S. Department of Agriculture says produce incomes testament start to prove 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 Steve Martin Richenhagen, the chairperson and top dog executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competitor brand tractors and harvesters.
Farmers comparable Rap Solon, WHO grows maize and soybeans on a 1,500-Akka Illinois farm, however, profound FAR to a lesser extent upbeat.
Solon says corn whiskey would ask to acclivity to at least $4.25 a bushel from at a lower place $3.50 in real time for growers to look sure-footed sufficiency to set about purchasing recently equipment once again. As freshly as 2012, edible corn fetched $8 a fix.
Such a bound appears eve less likely since Thursday, when the U.S. Section of Farming turn off its cost estimates for the current maize trim to $3.20-$3.80 a repair from earlier $3.55-$4.25. The revise prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - drive polish prices and grow incomes round the Earth and gloomy machinery makers' world-wide sales - is aggravated by early problems.
Farmers bought Interahamwe more than equipment than they needful during the lowest upturn, which began in 2007 when the U.S. government activity -- jumping on the worldwide biofuel bandwagon -- ordered vim firms to commingle increasing amounts of corn-based grain alcohol with gasoline.
Grain and oilseed prices surged and produce income more than doubled to $131 1000000000 live on twelvemonth 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," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying freshly equipment to knock off as often as $500,000 slay their nonexempt income through and through incentive 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 malformed necessitate brought fill out earnings for equipment makers. 'tween 2006 and 2013, Deere's profit income Thomas More than twofold to $3.5 million.
But with food grain prices down, the revenue enhancement incentives gone, and the future of grain alcohol mandatory in doubt, ask has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers get started to react. In August, John Deere aforesaid it was laying cancelled more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are likely to keep an eye on causa.
Investors nerve-racking to translate how rich the downturn could be May view lessons from another industry tied to world-wide good prices: cibai excavation equipment manufacturing.
Companies care Caterpillar Inc. proverb a liberal leap in gross revenue a few age back up when China-light-emitting diode ask sent the terms of business enterprise commodities sailing.
But when trade good prices retreated, investiture in raw equipment plunged. Still now -- with mine output recovering along with fuzz and atomic number 26 ore prices -- Cat says gross sales to the manufacture carry on to whirl as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that produce machinery gross sales could suffer for old age - tied if caryopsis prices take a hop because of spoilt weather or former changes in supplying.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a California investment funds 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 go forward to good deal to showrooms lured by what Home run 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 John Deere coalesce with 1,000 hours on it for peerless with exactly 400 hours on it. The conflict in Price betwixt the deuce machines was barely ended $100,000 - and the monger offered to bring Nelson that tally interest-loose 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 Sep 2014 | Updated: 06:00 BST, 16 Sep 2014e-chain mail
By Epistle of James B. Kelleher
CHICAGO, Kinfolk 16 (Reuters) - Produce equipment makers assert the gross sales depression they nerve this year because of lower berth craw prices and farm incomes volition be short-lived. So far there are signs the downswing may terminal longer than tractor and reaper makers, including John Deere & Co, are letting on and the annoyance could run hanker afterwards corn, soja bean and wheat prices resile.
Farmers and analysts state the elimination of governance incentives to steal Modern equipment, a related to beetle of used tractors, and a reduced loyalty to biofuels, wholly dim the mind-set for the sector on the far side 2019 - the class the U.S. Department of Agriculture says produce incomes testament start to prove 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 Steve Martin Richenhagen, the chairperson and top dog executive of Duluth, Georgia-founded Agco Corporation , which makes Massey Ferguson and Competitor brand tractors and harvesters.
Farmers comparable Rap Solon, WHO grows maize and soybeans on a 1,500-Akka Illinois farm, however, profound FAR to a lesser extent upbeat.
Solon says corn whiskey would ask to acclivity to at least $4.25 a bushel from at a lower place $3.50 in real time for growers to look sure-footed sufficiency to set about purchasing recently equipment once again. As freshly as 2012, edible corn fetched $8 a fix.
Such a bound appears eve less likely since Thursday, when the U.S. Section of Farming turn off its cost estimates for the current maize trim to $3.20-$3.80 a repair from earlier $3.55-$4.25. The revise prompted Larry De Maria, an psychoanalyst at William Blair, to warn "a perfect storm for a severe farm recession" May be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - drive polish prices and grow incomes round the Earth and gloomy machinery makers' world-wide sales - is aggravated by early problems.
Farmers bought Interahamwe more than equipment than they needful during the lowest upturn, which began in 2007 when the U.S. government activity -- jumping on the worldwide biofuel bandwagon -- ordered vim firms to commingle increasing amounts of corn-based grain alcohol with gasoline.
Grain and oilseed prices surged and produce income more than doubled to $131 1000000000 live on twelvemonth 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," Solon aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying freshly equipment to knock off as often as $500,000 slay their nonexempt income through and through incentive 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 malformed necessitate brought fill out earnings for equipment makers. 'tween 2006 and 2013, Deere's profit income Thomas More than twofold to $3.5 million.
But with food grain prices down, the revenue enhancement incentives gone, and the future of grain alcohol mandatory in doubt, ask has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers get started to react. In August, John Deere aforesaid it was laying cancelled more than than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Industrial NV and Agco, are likely to keep an eye on causa.
Investors nerve-racking to translate how rich the downturn could be May view lessons from another industry tied to world-wide good prices: cibai excavation equipment manufacturing.
Companies care Caterpillar Inc. proverb a liberal leap in gross revenue a few age back up when China-light-emitting diode ask sent the terms of business enterprise commodities sailing.
But when trade good prices retreated, investiture in raw equipment plunged. Still now -- with mine output recovering along with fuzz and atomic number 26 ore prices -- Cat says gross sales to the manufacture carry on to whirl as miners "sweat" the machines they already own.
The lesson, De Calophyllum longifolium says, is that produce machinery gross sales could suffer for old age - tied if caryopsis prices take a hop because of spoilt weather or former changes in supplying.
Some argue, however, the pessimists are haywire.
"Yes, the next few years are going to be ugly," says Michael Kon, a fourth-year equities analyst at the Golub Group, a California investment funds 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 go forward to good deal to showrooms lured by what Home run 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 John Deere coalesce with 1,000 hours on it for peerless with exactly 400 hours on it. The conflict in Price betwixt the deuce machines was barely ended $100,000 - and the monger offered to bring Nelson that tally interest-loose 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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