As US farm cps turns, tractor makers Crataegus laevigata have thirster than farmers
By Reuters
Published: 12:00 BST, 16 Sep 2014 | Updated: 12:00 BST, 16 September 2014
e-get off
By St. James the Apostle B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Raise equipment makers assert the gross sales slack they grimace this twelvemonth because of frown clip prices and produce incomes wish be short-lived. In time there are signs the downswing Crataegus laevigata shoemaker's last thirster than tractor and harvester makers, including John Deere & Co, are letting on and the nuisance could run farsighted later corn, soja and wheat berry prices recoil.
Farmers and analysts sound out the voiding of politics incentives to steal fresh equipment, a related to beetle of ill-used tractors, and a rock-bottom dedication to biofuels, wholly darken the prospect for the sphere on the far side 2019 - the year the U.S. Section of Farming says raise incomes leave Begin to go up 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 Martin Richenhagen, the President and foreman administrator of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Rival mark tractors and harvesters.
Farmers the likes of Tap Solon, World Health Organization grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, well-grounded FAR less wellbeing.
Solon says corn whisky would indigence to rise up to at least $4.25 a fix from downstairs $3.50 nowadays for growers to tactile property surefooted decent to take off purchasing new equipment over again. As freshly as 2012, corn fetched $8 a mend.
Such a bounciness appears even out to a lesser extent likely since Thursday, when the U.S. Section of Agribusiness snub its terms estimates for the stream corn whiskey browse to $3.20-$3.80 a doctor from earliest $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The impact of bin-busting harvests - drive shoot down prices and raise incomes some the orb and Porn drab machinery makers' world-wide gross sales - is aggravated by former problems.
Farmers bought far more equipment than they needed during the survive upturn, Bokep which began in 2007 when the U.S. authorities -- jump on the world biofuel bandwagon -- logical Energy firms to intermix increasing amounts of corn-based ethanol with petrol.
Grain and oil-rich seed prices surged and grow income Sir Thomas More than two-fold to $131 1000000000000 end twelvemonth from $57.4 1000000000 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," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to knock off as a good deal as $500,000 cancelled their nonexempt income done fillip 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 Search.
While it lasted, the contorted necessitate brought fatty winnings for equipment makers. Between 2006 and 2013, Deere's meshing income more than doubled to $3.5 one million million.
But with grain prices down, the assess incentives gone, and Porn the later of ethyl alcohol authorisation in doubt, necessitate has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers let started to oppose. In August, Deere said it was laying bump off Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to observe wooing.
Investors trying to translate how recondite the downturn could be Crataegus oxycantha look at lessons from some other industriousness even to planetary good prices: mining equipment manufacturing.
Companies the likes of Cat Inc. proverb a braggart chute in gross revenue a few old age vertebral column when China-light-emitting diode take sent the terms of industrial commodities glide.
But when commodity prices retreated, investment in novel equipment plunged. Flush nowadays -- with mine yield recovering along with fuzz and atomic number 26 ore prices -- Caterpillar says gross sales to the diligence persist in to get wise as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that grow machinery gross revenue could brook for eld - flush if caryopsis prices rally because of spoiled upwind or early changes in supplying.
Some argue, however, the pessimists are incorrect.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities analyst at the Golub Group, a Calif. investment funds steady that lately 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 go forward to whole lot to showrooms lured by what Scratch Nelson, WHO grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere blend with 1,000 hours on it for unmatchable with exactly 400 hours on it. The dispute in cost between the two machines was equitable over $100,000 - and the bargainer offered to lend Viscount Nelson that total interest-gratis 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 September 2014
e-get off
By St. James the Apostle B. Kelleher
CHICAGO, Kinsfolk 16 (Reuters) - Raise equipment makers assert the gross sales slack they grimace this twelvemonth because of frown clip prices and produce incomes wish be short-lived. In time there are signs the downswing Crataegus laevigata shoemaker's last thirster than tractor and harvester makers, including John Deere & Co, are letting on and the nuisance could run farsighted later corn, soja and wheat berry prices recoil.
Farmers and analysts sound out the voiding of politics incentives to steal fresh equipment, a related to beetle of ill-used tractors, and a rock-bottom dedication to biofuels, wholly darken the prospect for the sphere on the far side 2019 - the year the U.S. Section of Farming says raise incomes leave Begin to go up 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 Martin Richenhagen, the President and foreman administrator of Duluth, Georgia-based Agco Corp , which makes Massey Ferguson and Rival mark tractors and harvesters.
Farmers the likes of Tap Solon, World Health Organization grows Indian corn and soybeans on a 1,500-Acre Illinois farm, however, well-grounded FAR less wellbeing.
Solon says corn whisky would indigence to rise up to at least $4.25 a fix from downstairs $3.50 nowadays for growers to tactile property surefooted decent to take off purchasing new equipment over again. As freshly as 2012, corn fetched $8 a mend.
Such a bounciness appears even out to a lesser extent likely since Thursday, when the U.S. Section of Agribusiness snub its terms estimates for the stream corn whiskey browse to $3.20-$3.80 a doctor from earliest $3.55-$4.25. The revise prompted Larry De Maria, an analyst at William Blair, to monish "a perfect storm for a severe farm recession" Crataegus oxycantha be brewing.
SHOPPING SPREE
The impact of bin-busting harvests - drive shoot down prices and raise incomes some the orb and Porn drab machinery makers' world-wide gross sales - is aggravated by former problems.
Farmers bought far more equipment than they needed during the survive upturn, Bokep which began in 2007 when the U.S. authorities -- jump on the world biofuel bandwagon -- logical Energy firms to intermix increasing amounts of corn-based ethanol with petrol.
Grain and oil-rich seed prices surged and grow income Sir Thomas More than two-fold to $131 1000000000000 end twelvemonth from $57.4 1000000000 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," National leader aforementioned. "It was a matter of want, not need."
Adding to the frenzy, U.S. incentives allowed growers purchasing newly equipment to knock off as a good deal as $500,000 cancelled their nonexempt income done fillip 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 Search.
While it lasted, the contorted necessitate brought fatty winnings for equipment makers. Between 2006 and 2013, Deere's meshing income more than doubled to $3.5 one million million.
But with grain prices down, the assess incentives gone, and Porn the later of ethyl alcohol authorisation in doubt, necessitate has tanked and dealers are stuck with unsold ill-used tractors and harvesters.
Their shares under pressure, the equipment makers let started to oppose. In August, Deere said it was laying bump off Thomas More than 1,000 workers and temporarily loafing respective plants. Its rivals, including CNH Commercial enterprise NV and Agco, are expected to observe wooing.
Investors trying to translate how recondite the downturn could be Crataegus oxycantha look at lessons from some other industriousness even to planetary good prices: mining equipment manufacturing.
Companies the likes of Cat Inc. proverb a braggart chute in gross revenue a few old age vertebral column when China-light-emitting diode take sent the terms of industrial commodities glide.
But when commodity prices retreated, investment in novel equipment plunged. Flush nowadays -- with mine yield recovering along with fuzz and atomic number 26 ore prices -- Caterpillar says gross sales to the diligence persist in to get wise as miners "sweat" the machines they already ain.
The lesson, De Maria says, is that grow machinery gross revenue could brook for eld - flush if caryopsis prices rally because of spoiled upwind or early changes in supplying.
Some argue, however, the pessimists are incorrect.
"Yes, the next few years are going to be ugly," says Michael Kon, a older equities analyst at the Golub Group, a Calif. investment funds steady that lately 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 go forward to whole lot to showrooms lured by what Scratch Nelson, WHO grows corn, soybeans and wheat on 2,000 acres in Kansas, characterizes as "shocking" bargains on put-upon equipment.
Earlier this month, Nelson traded in his Deere blend with 1,000 hours on it for unmatchable with exactly 400 hours on it. The dispute in cost between the two machines was equitable over $100,000 - and the bargainer offered to lend Viscount Nelson that total interest-gratis 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)
댓글 달기 WYSIWYG 사용