As US raise cycle per second turns, tractor makers Crataegus oxycantha…
페이지 정보
작성자 Staci 댓글 0건 조회 4회 작성일 26-01-15 13:26본문
As US grow wheel turns, tractor makers May bear thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 September 2014
e-ring armor
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers importune the sales slump they cheek this twelvemonth because of let down pasture prices and grow incomes volition be short-lived. Hitherto thither are signs the downturn may lowest longer than tractor and harvester makers, including Deere & Co, are rental on and the nuisance could persevere tenacious after corn, soy and wheat berry prices spring.
Farmers and analysts read the reasoning by elimination of governing incentives to steal New equipment, a related overhang of secondhand tractors, and a reduced consignment to biofuels, all dim the mindset for the sector on the far side 2019 - the twelvemonth the U.S. Section of Husbandry says raise incomes volition begin to rise up again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the president and honcho administrator of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Rival brand name tractors and harvesters.
Farmers the like Tap Solon, who grows edible corn and soybeans on a 1,500-Acre Illinois farm, however, strait FAR less offbeat.
Solon says Indian corn would want to arise to at least $4.25 a doctor from under $3.50 at once for growers to experience confident adequate to commence purchasing young equipment over again. As newly as 2012, Indian corn fetched $8 a fix.
Such a jounce appears even to a lesser extent potential since Thursday, when the U.S. Department of Agriculture trimmed its price estimates for the electric current corn whisky pasture to $3.20-$3.80 a touch on from in the first place $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The bear on of bin-busting harvests - driving low prices and grow incomes just about the ball and dispiriting machinery makers' planetary gross revenue - is provoked by early problems.
Farmers bought Interahamwe more equipment than they needed during the end upturn, which began in 2007 when the U.S. governance -- jump on the orbicular biofuel bandwagon -- orderly vim firms to flux increasing amounts of corn-based ethyl alcohol with petrol.
Grain and oilseed prices surged and grow income Thomas More than twofold to $131 trillion final stage twelvemonth from $57.4 1000000000000 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 purchasing recently equipment to knock off as very much as $500,000 turned their taxable income through bonus disparagement 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 contorted need brought fat net for equipment makers. 'tween 2006 and 2013, Deere's last income Sir Thomas More than twofold to $3.5 trillion.
But with metric grain prices down, the task incentives gone, and the futurity of ethanol authorisation in doubt, necessitate has tanked and kontol dealers are stuck with unsold exploited tractors and harvesters.
Their shares below pressure, the equipment makers receive started to oppose. In August, Deere said it was laying sour more than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to travel along lawsuit.
Investors stressful to empathize how late the downswing could be Crataegus laevigata look at lessons from some other manufacture level to world-wide trade good prices: mining equipment manufacturing.
Companies similar Caterpillar INC. byword a freehanded start in gross revenue a few age rachis when China-light-emitting diode involve sent the Price of commercial enterprise commodities lofty.
But when commodity prices retreated, investment funds in freshly equipment plunged. Fifty-fifty nowadays -- with mine product recovering along with copper and cast-iron ore prices -- Caterpillar says gross sales to the diligence preserve to fall as miners "sweat" the machines they already have.
The lesson, De Mare says, is that farm machinery gross sales could hurt for years - flush if granulate prices reverberate because of high-risk upwind or former changes in issue.
Some argue, however, the pessimists are legal injury.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a California investment firm that freshly took a wager 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 uphold to cluster to showrooms lured by what Nock Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Nelson traded in his John Deere corporate trust with 1,000 hours on it for matchless with barely 400 hours on it. The divergence in terms betwixt the two machines was precisely o'er $100,000 - and the dealer offered to lend Nelson that tote up 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. (Editing by Saint David Greising and Tomasz Janowski)
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 September 2014
e-ring armor
By James B. Kelleher
CHICAGO, Sept 16 (Reuters) - Grow equipment makers importune the sales slump they cheek this twelvemonth because of let down pasture prices and grow incomes volition be short-lived. Hitherto thither are signs the downturn may lowest longer than tractor and harvester makers, including Deere & Co, are rental on and the nuisance could persevere tenacious after corn, soy and wheat berry prices spring.
Farmers and analysts read the reasoning by elimination of governing incentives to steal New equipment, a related overhang of secondhand tractors, and a reduced consignment to biofuels, all dim the mindset for the sector on the far side 2019 - the twelvemonth the U.S. Section of Husbandry says raise incomes volition begin to rise up again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Martin Richenhagen, the president and honcho administrator of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Rival brand name tractors and harvesters.
Farmers the like Tap Solon, who grows edible corn and soybeans on a 1,500-Acre Illinois farm, however, strait FAR less offbeat.
Solon says Indian corn would want to arise to at least $4.25 a doctor from under $3.50 at once for growers to experience confident adequate to commence purchasing young equipment over again. As newly as 2012, Indian corn fetched $8 a fix.
Such a jounce appears even to a lesser extent potential since Thursday, when the U.S. Department of Agriculture trimmed its price estimates for the electric current corn whisky pasture to $3.20-$3.80 a touch on from in the first place $3.55-$4.25. The rescript prompted Larry De Maria, an analyst at William Blair, to discourage "a perfect storm for a severe farm recession" Crataegus laevigata be brewing.
SHOPPING SPREE
The bear on of bin-busting harvests - driving low prices and grow incomes just about the ball and dispiriting machinery makers' planetary gross revenue - is provoked by early problems.
Farmers bought Interahamwe more equipment than they needed during the end upturn, which began in 2007 when the U.S. governance -- jump on the orbicular biofuel bandwagon -- orderly vim firms to flux increasing amounts of corn-based ethyl alcohol with petrol.
Grain and oilseed prices surged and grow income Thomas More than twofold to $131 trillion final stage twelvemonth from $57.4 1000000000000 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 purchasing recently equipment to knock off as very much as $500,000 turned their taxable income through bonus disparagement 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 contorted need brought fat net for equipment makers. 'tween 2006 and 2013, Deere's last income Sir Thomas More than twofold to $3.5 trillion.
But with metric grain prices down, the task incentives gone, and the futurity of ethanol authorisation in doubt, necessitate has tanked and kontol dealers are stuck with unsold exploited tractors and harvesters.
Their shares below pressure, the equipment makers receive started to oppose. In August, Deere said it was laying sour more than 1,000 workers and temporarily idleness several plants. Its rivals, including CNH Commercial enterprise NV and Agco, are likely to travel along lawsuit.
Investors stressful to empathize how late the downswing could be Crataegus laevigata look at lessons from some other manufacture level to world-wide trade good prices: mining equipment manufacturing.
Companies similar Caterpillar INC. byword a freehanded start in gross revenue a few age rachis when China-light-emitting diode involve sent the Price of commercial enterprise commodities lofty.
But when commodity prices retreated, investment funds in freshly equipment plunged. Fifty-fifty nowadays -- with mine product recovering along with copper and cast-iron ore prices -- Caterpillar says gross sales to the diligence preserve to fall as miners "sweat" the machines they already have.
The lesson, De Mare says, is that farm machinery gross sales could hurt for years - flush if granulate prices reverberate because of high-risk upwind or former changes in issue.
Some argue, however, the pessimists are legal injury.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a California investment firm that freshly took a wager 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 uphold to cluster to showrooms lured by what Nock Nelson, who grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on exploited equipment.
Earlier this month, Nelson traded in his John Deere corporate trust with 1,000 hours on it for matchless with barely 400 hours on it. The divergence in terms betwixt the two machines was precisely o'er $100,000 - and the dealer offered to lend Nelson that tote up 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. (Editing by Saint David Greising and Tomasz Janowski)
댓글목록
등록된 댓글이 없습니다.
