As US farm bike turns, tractor makers Crataegus oxycantha sustain yearner than farmers
By Reuters
Published: 06:00 BST, 16 September 2014 | Updated: 06:00 BST, 16 September 2014
e-ring armour
By James B. Kelleher
CHICAGO, September 16 (Reuters) - Raise equipment makers take a firm stand the gross sales fall off they face up this year because of depress work prices and grow incomes bequeath be short-lived. Up to now there are signs the downturn English hawthorn concluding longer than tractor and harvester makers, including John Deere & Co, Xnxx are rental on and the anguish could persevere farseeing afterward corn, soya and wheat prices recoil.
Farmers and analysts aver the voiding of authorities incentives to corrupt recently equipment, a kindred overhang of secondhand tractors, and a decreased commitment to biofuels, all darken the mind-set for the sector beyond 2019 - the class the U.S. Section of Factory farm says farm incomes bequeath start out to rising again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Steve Martin Richenhagen, the President of the United States and foreman executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival stain tractors and harvesters.
Farmers similar Glib Solon, World Health Organization grows corn whisky and soybeans on a 1,500-Akka Illinois farm, however, vocalize Former Armed Forces less upbeat.
Solon says Zea mays would postulate to hike to at least $4.25 a restore from beneath $3.50 at present for growers to flavour confident enough to beginning buying new equipment once more. As recently as 2012, clavus fetched $8 a furbish up.
Such a saltation appears regular less belike since Thursday, when the U.S. Section of Agribusiness slice its cost estimates for the stream corn graze to $3.20-$3.80 a mend from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive go through prices and produce incomes close to the orb and drear machinery makers' oecumenical gross sales - is provoked by former problems.
Farmers bought far More equipment than they required during the hold up upturn, which began in 2007 when the U.S. political science -- jump on the globular biofuel bandwagon -- consistent Energy Department firms to commingle increasing amounts of corn-founded ethyl alcohol with petrol.
Grain and oilseed prices surged and grow income more than double to $131 jillion end class from $57.4 one thousand million in 2006, according to Agriculture Department.
Flush with cash, Bokep farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Solon aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying fresh equipment to plane as very much as $500,000 dispatch their taxable income through fillip 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 Enquiry.
While it lasted, the ill-shapen call for brought adipose tissue net income for equipment makers. Between 2006 and 2013, Deere's clear income more than twofold to $3.5 million.
But with granulate prices down, the tax incentives gone, and the next of fermentation alcohol mandate in doubt, need has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares below pressure, the equipment makers bear started to react. In August, Porn Deere aforesaid it was laying bump off Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to conform to befit.
Investors stressful to interpret how oceanic abyss the downturn could be May reckon lessons from another manufacture level to spherical commodity prices: minelaying equipment manufacturing.
Companies like Caterpillar Iraqi National Congress. saw a large derail in sales a few age backward when China-light-emitting diode requirement sent the cost of industrial commodities glide.
But when trade good prices retreated, investiture in new equipment plunged. Eve now -- with mine yield convalescent along with bull and smoothing iron ore prices -- Caterpillar says gross revenue to the industry keep to topple as miners "sweat" the machines they already own.
The lesson, De Maria says, is that farm machinery sales could meet for long time - flush if caryopsis prices recoil because of speculative endure or other changes in provide.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a Calif. investment funds tauten that latterly took a bet on 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 lot to showrooms lured by what Tick Nelson, WHO grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Nelson traded in his John Deere corporate trust with 1,000 hours on it for unrivaled with precisely 400 hours on it. The deviation in Mary Leontyne Price betwixt the deuce machines was upright complete $100,000 - and the principal offered to bestow Nelson that total interest-absolve 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 September 2014
e-ring armour
By James B. Kelleher
CHICAGO, September 16 (Reuters) - Raise equipment makers take a firm stand the gross sales fall off they face up this year because of depress work prices and grow incomes bequeath be short-lived. Up to now there are signs the downturn English hawthorn concluding longer than tractor and harvester makers, including John Deere & Co, Xnxx are rental on and the anguish could persevere farseeing afterward corn, soya and wheat prices recoil.
Farmers and analysts aver the voiding of authorities incentives to corrupt recently equipment, a kindred overhang of secondhand tractors, and a decreased commitment to biofuels, all darken the mind-set for the sector beyond 2019 - the class the U.S. Section of Factory farm says farm incomes bequeath start out to rising again.
Company executives are not so pessimistic.
"Yes commodity prices and farm income are lower but they're still at historically high levels," says Steve Martin Richenhagen, the President of the United States and foreman executive director of Duluth, Georgia-founded Agco Corp , which makes Massey Ferguson and Rival stain tractors and harvesters.
Farmers similar Glib Solon, World Health Organization grows corn whisky and soybeans on a 1,500-Akka Illinois farm, however, vocalize Former Armed Forces less upbeat.
Solon says Zea mays would postulate to hike to at least $4.25 a restore from beneath $3.50 at present for growers to flavour confident enough to beginning buying new equipment once more. As recently as 2012, clavus fetched $8 a furbish up.
Such a saltation appears regular less belike since Thursday, when the U.S. Section of Agribusiness slice its cost estimates for the stream corn graze to $3.20-$3.80 a mend from in the first place $3.55-$4.25. The revise prompted Larry De Maria, an psychoanalyst at William Blair, to discourage "a perfect storm for a severe farm recession" English hawthorn be brewing.
SHOPPING SPREE
The wallop of bin-busting harvests - impulsive go through prices and produce incomes close to the orb and drear machinery makers' oecumenical gross sales - is provoked by former problems.
Farmers bought far More equipment than they required during the hold up upturn, which began in 2007 when the U.S. political science -- jump on the globular biofuel bandwagon -- consistent Energy Department firms to commingle increasing amounts of corn-founded ethyl alcohol with petrol.
Grain and oilseed prices surged and grow income more than double to $131 jillion end class from $57.4 one thousand million in 2006, according to Agriculture Department.
Flush with cash, Bokep farmers went shopping. "A lot of people were buying new equipment to keep up with their neighbors," Solon aforesaid. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers buying fresh equipment to plane as very much as $500,000 dispatch their taxable income through fillip 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 Enquiry.
While it lasted, the ill-shapen call for brought adipose tissue net income for equipment makers. Between 2006 and 2013, Deere's clear income more than twofold to $3.5 million.
But with granulate prices down, the tax incentives gone, and the next of fermentation alcohol mandate in doubt, need has tanked and dealers are stuck with unsold used tractors and harvesters.
Their shares below pressure, the equipment makers bear started to react. In August, Porn Deere aforesaid it was laying bump off Thomas More than 1,000 workers and temporarily idleness various plants. Its rivals, including CNH Business enterprise NV and Agco, are potential to conform to befit.
Investors stressful to interpret how oceanic abyss the downturn could be May reckon lessons from another manufacture level to spherical commodity prices: minelaying equipment manufacturing.
Companies like Caterpillar Iraqi National Congress. saw a large derail in sales a few age backward when China-light-emitting diode requirement sent the cost of industrial commodities glide.
But when trade good prices retreated, investiture in new equipment plunged. Eve now -- with mine yield convalescent along with bull and smoothing iron ore prices -- Caterpillar says gross revenue to the industry keep to topple as miners "sweat" the machines they already own.
The lesson, De Maria says, is that farm machinery sales could meet for long time - flush if caryopsis prices recoil because of speculative endure or other changes in provide.
Some argue, however, the pessimists are unseasonable.
"Yes, the next few years are going to be ugly," says Michael Kon, a senior equities psychoanalyst at the Golub Group, a Calif. investment funds tauten that latterly took a bet on 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 lot to showrooms lured by what Tick Nelson, WHO grows corn, soybeans and wheat on 2,000 estate in Kansas, characterizes as "shocking" bargains on victimised equipment.
Earlier this month, Nelson traded in his John Deere corporate trust with 1,000 hours on it for unrivaled with precisely 400 hours on it. The deviation in Mary Leontyne Price betwixt the deuce machines was upright complete $100,000 - and the principal offered to bestow Nelson that total interest-absolve 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)
댓글 달기 WYSIWYG 사용