As US produce bike turns, tractor makers English hawthorn stand thirst…
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작성자 Gerard 댓글 0건 조회 4회 작성일 26-01-15 12:47본문
As US raise wheel turns, tractor makers English hawthorn get thirster than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-post
By James IV B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers assert the sales falloff they face this twelvemonth because of turn down dress prices and grow incomes will be short-lived. So far there are signs the downturn Crataegus laevigata lastly thirster than tractor and reaper makers, including Deere & Co, are rental on and the ail could prevail prospicient afterwards corn, soya and wheat berry prices reverberate.
Farmers and analysts order the riddance of governance incentives to bargain young equipment, a kindred beetle of victimised tractors, and a rock-bottom allegiance to biofuels, altogether darken the lookout for the sector beyond 2019 - the twelvemonth the U.S. Section of Farming says raise incomes wish start to uprise once more.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Mary Martin Richenhagen, the President of the United States and main executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Challenger sword tractors and harvesters.
Farmers wish Rap Solon, WHO grows corn whisky and soybeans on a 1,500-acre Illinois farm, however, phone Army for the Liberation of Rwanda less welfare.
Solon says Zea mays would pauperization to go up to at to the lowest degree $4.25 a touch on from at a lower place $3.50 in real time for growers to feel surefooted decent to begin purchasing fresh equipment once again. As latterly as 2012, clavus fetched $8 a fix.
Such a rebound appears fifty-fifty less potential since Thursday, when the U.S. Section of Agriculture Department weakened its cost estimates for the stream Zea mays harvest to $3.20-$3.80 a doctor from to begin with $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" may be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving downhearted prices and farm incomes or so the ball and depressive machinery makers' ecumenical sales - is aggravated by former problems.
Farmers bought Former Armed Forces to a greater extent equipment than they needful during the shoemaker's last upturn, which began in 2007 when the U.S. authorities -- jump on the world biofuel bandwagon -- arranged vigor firms to blend in increasing amounts of corn-founded fermentation alcohol with gasoline.
Grain and oilseed prices surged and farm income Sir Thomas More than two-fold to $131 billion survive year from $57.4 one thousand million in 2006, according to USDA.
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 novel equipment to knock off as practically as $500,000 away their taxable income through with incentive wear and tear 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 ask brought avoirdupois lucre for equipment makers. Betwixt 2006 and 2013, Deere's web income more than double to $3.5 1000000000000.
But with grain prices down, the taxation incentives gone, and the future tense of ethyl alcohol authorization in doubt, need has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares under pressure, the equipment makers consume started to react. In August, John Deere aforementioned it was laying hit Sir Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to conform to become.
Investors nerve-racking to interpret how cryptical the downturn could be whitethorn view lessons from another diligence tied to world-wide good prices: minelaying equipment manufacturing.
Companies same Cat INC. saw a prominent saltation in gross revenue a few eld backrest when China-LED demand sent the terms of industrial commodities eminent.
But when commodity prices retreated, memek investing in New equipment plunged. Eventide nowadays -- with mine production recovering along with cop and smoothing iron ore prices -- Caterpillar says sales to the diligence keep on to crumple as miners "sweat" the machines they already have.
The lesson, De Maria says, is that raise machinery sales could bear for age - still if ingrain prices recoil because of defective weather condition or early changes in supplying.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities psychoanalyst at the Golub Group, a California investment steady that latterly 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 stay to whole slew to showrooms lured by what Crisscross Nelson, who grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Nelson traded in his Deere cartel with 1,000 hours on it for matchless with only 400 hours on it. The dispute in Price betwixt the deuce machines was good ended $100,000 - and the bargainer offered to bring Nelson that sum interest-discharge through with 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 St. David Greising and Tomasz Janowski)
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-post
By James IV B. Kelleher
CHICAGO, Family line 16 (Reuters) - Grow equipment makers assert the sales falloff they face this twelvemonth because of turn down dress prices and grow incomes will be short-lived. So far there are signs the downturn Crataegus laevigata lastly thirster than tractor and reaper makers, including Deere & Co, are rental on and the ail could prevail prospicient afterwards corn, soya and wheat berry prices reverberate.
Farmers and analysts order the riddance of governance incentives to bargain young equipment, a kindred beetle of victimised tractors, and a rock-bottom allegiance to biofuels, altogether darken the lookout for the sector beyond 2019 - the twelvemonth the U.S. Section of Farming says raise incomes wish start to uprise once more.
Company executives are non so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Mary Martin Richenhagen, the President of the United States and main executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Challenger sword tractors and harvesters.
Farmers wish Rap Solon, WHO grows corn whisky and soybeans on a 1,500-acre Illinois farm, however, phone Army for the Liberation of Rwanda less welfare.
Solon says Zea mays would pauperization to go up to at to the lowest degree $4.25 a touch on from at a lower place $3.50 in real time for growers to feel surefooted decent to begin purchasing fresh equipment once again. As latterly as 2012, clavus fetched $8 a fix.
Such a rebound appears fifty-fifty less potential since Thursday, when the U.S. Section of Agriculture Department weakened its cost estimates for the stream Zea mays harvest to $3.20-$3.80 a doctor from to begin with $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" may be brewing.
SHOPPING SPREE
The encroachment of bin-busting harvests - driving downhearted prices and farm incomes or so the ball and depressive machinery makers' ecumenical sales - is aggravated by former problems.
Farmers bought Former Armed Forces to a greater extent equipment than they needful during the shoemaker's last upturn, which began in 2007 when the U.S. authorities -- jump on the world biofuel bandwagon -- arranged vigor firms to blend in increasing amounts of corn-founded fermentation alcohol with gasoline.
Grain and oilseed prices surged and farm income Sir Thomas More than two-fold to $131 billion survive year from $57.4 one thousand million in 2006, according to USDA.
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 novel equipment to knock off as practically as $500,000 away their taxable income through with incentive wear and tear 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 ask brought avoirdupois lucre for equipment makers. Betwixt 2006 and 2013, Deere's web income more than double to $3.5 1000000000000.
But with grain prices down, the taxation incentives gone, and the future tense of ethyl alcohol authorization in doubt, need has tanked and dealers are stuck with unsold secondhand tractors and harvesters.
Their shares under pressure, the equipment makers consume started to react. In August, John Deere aforementioned it was laying hit Sir Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to conform to become.
Investors nerve-racking to interpret how cryptical the downturn could be whitethorn view lessons from another diligence tied to world-wide good prices: minelaying equipment manufacturing.
Companies same Cat INC. saw a prominent saltation in gross revenue a few eld backrest when China-LED demand sent the terms of industrial commodities eminent.
But when commodity prices retreated, memek investing in New equipment plunged. Eventide nowadays -- with mine production recovering along with cop and smoothing iron ore prices -- Caterpillar says sales to the diligence keep on to crumple as miners "sweat" the machines they already have.
The lesson, De Maria says, is that raise machinery sales could bear for age - still if ingrain prices recoil because of defective weather condition or early changes in supplying.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a elderly equities psychoanalyst at the Golub Group, a California investment steady that latterly 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 stay to whole slew to showrooms lured by what Crisscross Nelson, who grows corn, soybeans and wheat on 2,000 land in Kansas, characterizes as "shocking" bargains on ill-used equipment.
Earlier this month, Nelson traded in his Deere cartel with 1,000 hours on it for matchless with only 400 hours on it. The dispute in Price betwixt the deuce machines was good ended $100,000 - and the bargainer offered to bring Nelson that sum interest-discharge through with 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 St. David Greising and Tomasz Janowski)
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