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INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Industry Perspective
Joanne Howard
Challenges and Opportunities in Managing Agricultural Operations
for a Low-Carbon Economy
18 July 2007
2INTEGRITY • QUALITY • COMMITMENT • INNOVATION
John Deere Today
 #1 provider to agricultural and forestry businesses worldwide
 #2 construction equipment provider in North America
 Quality leader in lawn, grounds and turf care equipment
 A leading worldwide manufacturer of off-highway diesel engines
 One of the largest equipment finance companies in the U.S.
 Key investor in alternative energy sources
 Exciting new entities: John Deere Agri Services, Intelligent
Mobile Equipment Technologies, Landscapes, Wind Energy
An American icon – founded in 1837 – growing
outside the United States for more than 50 years
3INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Mannheim, Germany
Richards Bay, South Africa
Pune, India
Jiamusi, China
Stadtlohn, Germany
Gummersbach, Germany
Horst, Netherlands
Enschede, Netherlands
Bruchsal, Germany
Zweibruecken, Germany
Arc-les-Gray, France
Saran, France
Madrid, Spain
Catalao, Brazil
Horizontina, Brazil
Rosario, Argentina
Saltillo, Mexico
Monterrey, Mexico
Torreon, Mexico
Valley City, ND
Fargo, ND
Minneapolis, MN
Dubuque, IA
Horicon, WI
Waterloo, IA
Moline, IL
East Moline, IL
Welland, Ontario
Edmonton, Alberta
Davenport, IA
Des Moines, IA
Langley, British Columbia
Ottumwa, IA
Springfield, MO
Coffeyville, KS
Thibodaux, LA
Fuquay-Varina, NC
Greeneville, TN
Augusta, GA
Kernersville, NC
Joensuu, Finland
Rock Valley, IA
Klemme, IA
Tokoroa, New Zealand
Tianjin, China
Orenburg, Russia
Tampere, Finland
John Deere Today
Montenegro, Brazil
Brisbane, Australia
4INTEGRITY • QUALITY • COMMITMENT • INNOVATION
2006 Net Sales & Revenues: $22.148 Billion
Commercial & Consumer 18%
Agricultural 46%
Credit 8%
Construction &
Forestry 26%
Other 2%
Investing nearly $2 million per
day in research and development
5INTEGRITY • QUALITY • COMMITMENT • INNOVATION
We Contribute…We Solve
Our Factories/Buildings
• Direct / Indirect
Emissions
Customers/Dealers
• Carbon sequestration:
agricultural, forestry, mowing
opportunities
Product
• Engine Emissions
• Biofuel Usage
Research & Development
• Renewable energy sources
• Biomass Activities
6INTEGRITY • QUALITY • COMMITMENT • INNOVATION
We Contribute
7INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Greenhouse Gas Accounting Protocols
Consistency
Company A’s ton of GHG = Company B’s ton of GHG
8INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Deere’s Direct vs. Indirect Emissions
Largest Direct Processes
• Foundry
• Heat Treat
• Painting
• Powerhouses
• Testing Operations
31% Direct 69% Indirect
Purchased Electricity & Steam
Deere’s GHG Emissions
9INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Annual GHG Inventory
2006 Percent By Region (Absolute Basis)
U.S.
80%
Europe
11%
Canada
3%
Mexico
4%
South
America
1%
Asia / Pacific
Rim
3%
Year Energy Cost (US$)
2003 $78,685,880
2004 $87,130,072
2005 $100,139,930
2006 $111,983,6800
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2003 2004 2005 2006
TonsCO2-Equiv
Direct Indirect
10INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Manufacturing -
Direct
29%
Manufacturing -
Indirect
60%
Offices - Owned
4%
Offices -
Leased
1%
Fleet
2%
Warehouses
4%
2006 CO2 Tonnage Breakdown (FY2006 Data)
Manufacturing: 89%
11INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Enhanced External Communications
2006 Global Citizenship Report
External Web Page
12INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Voluntary Program Participation
13INTEGRITY • QUALITY • COMMITMENT • INNOVATION
John Deere & USCAP
14INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Industry Perspective: We Contribute
• Standardization
• Uniform federal framework of climate legislation
• Uniform guidelines for GHG inventory and registry
• Credit for Early Action
15INTEGRITY • QUALITY • COMMITMENT • INNOVATION
We Solve
16INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Fuel Efficient Diesel Engines
John Deere Power Systems
Performance optimized Tier 3
PowerTech Plus™
engines
providing industry-leading fuel
economy, power, response
17INTEGRITY • QUALITY • COMMITMENT • INNOVATION
8430 Tractor: Set new
record as most fuel-
efficient row crop tractor
ever tested in the
Nebraska Test Lab
18INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Use of Renewable Materials
John Deere Power Systems
25 x ‘25 Renewable Fuels Champion
Promoting quality standards, handling,
distribution and use of biodiesel fuels
19INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Use of Recycled Materials in Products
20INTEGRITY • QUALITY • COMMITMENT • INNOVATION
"The pneumatic down pressure
feature on my 1770NT planter easily
adjusts from the tractor cab and
provides more down pressure options
than you will ever find that you
need." — Kenneth Wisehart, Shirley,
Ind.
"The single-disc fertilizer
openers provide efficient
fertilizer placement with
minimal soil disturbance." —
Grant Troop, Quarryville, Pa.
Conservation Tillage Equipment
21INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Precision Farming Equipment
John Deere Ag Management Solutions
• GreenStar
AutoTrac
• iTECPro
Multiple
precision Ag
applications
Precision Ag Solutions for
Growers Worldwide
22INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Nutrient Application Equipment and Solutions
John Deere Agri Services
Turning information into insight and strategies that add
value and strengthen businesses across the agri-food
supply chain
• OptiGro
• Soil
Information
Systems
23INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Financial Services
John Deere Wind Energy
• Provide advice, debt and equity
investment and the foundation for a
successful project through:
• Long-term, comprehensive project
management services
• Turbine supply
• A stream-lined project approval
process and technical support
• Expertise in agriculture, financial
services and wind energy technology
24INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Wind Climate benefits
• A single turbine displaces 2700 tons of Carbon Dioxide
annually
• Current fleet of installed turbines in US
• Avoid 19 million CO2 tons annually
• Avoids burning 16 million tons of coal each year or 50
million Barrels of Oil
• Avoids consumption of Water in fossil fuel generation
• Avg. per person consumption for energy: 100,000
gallons of water
25INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Project Locations
17 April 2007
= Operating = In Construction = Planned (Approved)
(75.2 MW) (228.5 MW) (233.15 MW)
26INTEGRITY • QUALITY • COMMITMENT • INNOVATION
JD Wind 3
27INTEGRITY • QUALITY • COMMITMENT • INNOVATION
One Farmer’s Sentiments on Wind Energy
"I think it's one of the greatest things that ever happened.
It's good for my pocketbook. It's good for the environment.”
-- Chuck Goodman, retired farmer near Alta, Iowa;
Has three wind turbines on his land
28INTEGRITY • QUALITY • COMMITMENT • INNOVATION
We Solve: Summary
• Fuel-efficient diesel engines
• Use of renewable materials in products
• Corn- and soy-based plastics for some
combine and tractor components
• Conservation tillage equipment: planters, air
seeders, drills
• Precision farming equipment: GreenStar
AutoTrac and iTEC Pro
• Nutrient application equipment and solutions:
OptiGro and Soil Information System
• Wind energy service provider
29INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Industry Perspective: We Solve
• Technology Policies and Measures:
• Renewables - use / research / standards
• Emission Offsets:
• Ensuring robust and reliable participation by agricultural
and forestry sectors in climate policies
• Offsets should include a variety of options, e.g. soil, plant, forest
sequestration, methane capture, renewable energy
• Offsets must be verifiable
• Development of a single, nationwide standard for verifying and
accounting for agriculture and forestry offsets is needed
30INTEGRITY • QUALITY • COMMITMENT • INNOVATION
Questions?
For further information:
Joanne Howard
309 765 5152
howardjoannem@johndeere.com

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John Deere Agricultural Services

  • 1. INTEGRITY • QUALITY • COMMITMENT • INNOVATION Industry Perspective Joanne Howard Challenges and Opportunities in Managing Agricultural Operations for a Low-Carbon Economy 18 July 2007
  • 2. 2INTEGRITY • QUALITY • COMMITMENT • INNOVATION John Deere Today  #1 provider to agricultural and forestry businesses worldwide  #2 construction equipment provider in North America  Quality leader in lawn, grounds and turf care equipment  A leading worldwide manufacturer of off-highway diesel engines  One of the largest equipment finance companies in the U.S.  Key investor in alternative energy sources  Exciting new entities: John Deere Agri Services, Intelligent Mobile Equipment Technologies, Landscapes, Wind Energy An American icon – founded in 1837 – growing outside the United States for more than 50 years
  • 3. 3INTEGRITY • QUALITY • COMMITMENT • INNOVATION Mannheim, Germany Richards Bay, South Africa Pune, India Jiamusi, China Stadtlohn, Germany Gummersbach, Germany Horst, Netherlands Enschede, Netherlands Bruchsal, Germany Zweibruecken, Germany Arc-les-Gray, France Saran, France Madrid, Spain Catalao, Brazil Horizontina, Brazil Rosario, Argentina Saltillo, Mexico Monterrey, Mexico Torreon, Mexico Valley City, ND Fargo, ND Minneapolis, MN Dubuque, IA Horicon, WI Waterloo, IA Moline, IL East Moline, IL Welland, Ontario Edmonton, Alberta Davenport, IA Des Moines, IA Langley, British Columbia Ottumwa, IA Springfield, MO Coffeyville, KS Thibodaux, LA Fuquay-Varina, NC Greeneville, TN Augusta, GA Kernersville, NC Joensuu, Finland Rock Valley, IA Klemme, IA Tokoroa, New Zealand Tianjin, China Orenburg, Russia Tampere, Finland John Deere Today Montenegro, Brazil Brisbane, Australia
  • 4. 4INTEGRITY • QUALITY • COMMITMENT • INNOVATION 2006 Net Sales & Revenues: $22.148 Billion Commercial & Consumer 18% Agricultural 46% Credit 8% Construction & Forestry 26% Other 2% Investing nearly $2 million per day in research and development
  • 5. 5INTEGRITY • QUALITY • COMMITMENT • INNOVATION We Contribute…We Solve Our Factories/Buildings • Direct / Indirect Emissions Customers/Dealers • Carbon sequestration: agricultural, forestry, mowing opportunities Product • Engine Emissions • Biofuel Usage Research & Development • Renewable energy sources • Biomass Activities
  • 6. 6INTEGRITY • QUALITY • COMMITMENT • INNOVATION We Contribute
  • 7. 7INTEGRITY • QUALITY • COMMITMENT • INNOVATION Greenhouse Gas Accounting Protocols Consistency Company A’s ton of GHG = Company B’s ton of GHG
  • 8. 8INTEGRITY • QUALITY • COMMITMENT • INNOVATION Deere’s Direct vs. Indirect Emissions Largest Direct Processes • Foundry • Heat Treat • Painting • Powerhouses • Testing Operations 31% Direct 69% Indirect Purchased Electricity & Steam Deere’s GHG Emissions
  • 9. 9INTEGRITY • QUALITY • COMMITMENT • INNOVATION Annual GHG Inventory 2006 Percent By Region (Absolute Basis) U.S. 80% Europe 11% Canada 3% Mexico 4% South America 1% Asia / Pacific Rim 3% Year Energy Cost (US$) 2003 $78,685,880 2004 $87,130,072 2005 $100,139,930 2006 $111,983,6800 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 2003 2004 2005 2006 TonsCO2-Equiv Direct Indirect
  • 10. 10INTEGRITY • QUALITY • COMMITMENT • INNOVATION Manufacturing - Direct 29% Manufacturing - Indirect 60% Offices - Owned 4% Offices - Leased 1% Fleet 2% Warehouses 4% 2006 CO2 Tonnage Breakdown (FY2006 Data) Manufacturing: 89%
  • 11. 11INTEGRITY • QUALITY • COMMITMENT • INNOVATION Enhanced External Communications 2006 Global Citizenship Report External Web Page
  • 12. 12INTEGRITY • QUALITY • COMMITMENT • INNOVATION Voluntary Program Participation
  • 13. 13INTEGRITY • QUALITY • COMMITMENT • INNOVATION John Deere & USCAP
  • 14. 14INTEGRITY • QUALITY • COMMITMENT • INNOVATION Industry Perspective: We Contribute • Standardization • Uniform federal framework of climate legislation • Uniform guidelines for GHG inventory and registry • Credit for Early Action
  • 15. 15INTEGRITY • QUALITY • COMMITMENT • INNOVATION We Solve
  • 16. 16INTEGRITY • QUALITY • COMMITMENT • INNOVATION Fuel Efficient Diesel Engines John Deere Power Systems Performance optimized Tier 3 PowerTech Plus™ engines providing industry-leading fuel economy, power, response
  • 17. 17INTEGRITY • QUALITY • COMMITMENT • INNOVATION 8430 Tractor: Set new record as most fuel- efficient row crop tractor ever tested in the Nebraska Test Lab
  • 18. 18INTEGRITY • QUALITY • COMMITMENT • INNOVATION Use of Renewable Materials John Deere Power Systems 25 x ‘25 Renewable Fuels Champion Promoting quality standards, handling, distribution and use of biodiesel fuels
  • 19. 19INTEGRITY • QUALITY • COMMITMENT • INNOVATION Use of Recycled Materials in Products
  • 20. 20INTEGRITY • QUALITY • COMMITMENT • INNOVATION "The pneumatic down pressure feature on my 1770NT planter easily adjusts from the tractor cab and provides more down pressure options than you will ever find that you need." — Kenneth Wisehart, Shirley, Ind. "The single-disc fertilizer openers provide efficient fertilizer placement with minimal soil disturbance." — Grant Troop, Quarryville, Pa. Conservation Tillage Equipment
  • 21. 21INTEGRITY • QUALITY • COMMITMENT • INNOVATION Precision Farming Equipment John Deere Ag Management Solutions • GreenStar AutoTrac • iTECPro Multiple precision Ag applications Precision Ag Solutions for Growers Worldwide
  • 22. 22INTEGRITY • QUALITY • COMMITMENT • INNOVATION Nutrient Application Equipment and Solutions John Deere Agri Services Turning information into insight and strategies that add value and strengthen businesses across the agri-food supply chain • OptiGro • Soil Information Systems
  • 23. 23INTEGRITY • QUALITY • COMMITMENT • INNOVATION Financial Services John Deere Wind Energy • Provide advice, debt and equity investment and the foundation for a successful project through: • Long-term, comprehensive project management services • Turbine supply • A stream-lined project approval process and technical support • Expertise in agriculture, financial services and wind energy technology
  • 24. 24INTEGRITY • QUALITY • COMMITMENT • INNOVATION Wind Climate benefits • A single turbine displaces 2700 tons of Carbon Dioxide annually • Current fleet of installed turbines in US • Avoid 19 million CO2 tons annually • Avoids burning 16 million tons of coal each year or 50 million Barrels of Oil • Avoids consumption of Water in fossil fuel generation • Avg. per person consumption for energy: 100,000 gallons of water
  • 25. 25INTEGRITY • QUALITY • COMMITMENT • INNOVATION Project Locations 17 April 2007 = Operating = In Construction = Planned (Approved) (75.2 MW) (228.5 MW) (233.15 MW)
  • 26. 26INTEGRITY • QUALITY • COMMITMENT • INNOVATION JD Wind 3
  • 27. 27INTEGRITY • QUALITY • COMMITMENT • INNOVATION One Farmer’s Sentiments on Wind Energy "I think it's one of the greatest things that ever happened. It's good for my pocketbook. It's good for the environment.” -- Chuck Goodman, retired farmer near Alta, Iowa; Has three wind turbines on his land
  • 28. 28INTEGRITY • QUALITY • COMMITMENT • INNOVATION We Solve: Summary • Fuel-efficient diesel engines • Use of renewable materials in products • Corn- and soy-based plastics for some combine and tractor components • Conservation tillage equipment: planters, air seeders, drills • Precision farming equipment: GreenStar AutoTrac and iTEC Pro • Nutrient application equipment and solutions: OptiGro and Soil Information System • Wind energy service provider
  • 29. 29INTEGRITY • QUALITY • COMMITMENT • INNOVATION Industry Perspective: We Solve • Technology Policies and Measures: • Renewables - use / research / standards • Emission Offsets: • Ensuring robust and reliable participation by agricultural and forestry sectors in climate policies • Offsets should include a variety of options, e.g. soil, plant, forest sequestration, methane capture, renewable energy • Offsets must be verifiable • Development of a single, nationwide standard for verifying and accounting for agriculture and forestry offsets is needed
  • 30. 30INTEGRITY • QUALITY • COMMITMENT • INNOVATION Questions? For further information: Joanne Howard 309 765 5152 howardjoannem@johndeere.com

Notas del editor

  1. Deere & Company is one of the oldest industrial companies in the United States. In Grand Detour, IL, company founder John Deere built the first commercially successful self-scouring steel plow in 1837. John Deere Agri Services combines technology with knowledge to build services John Deere can offer throughout the agri-food value chain – from growers and their suppliers to big food and fiber processors and even retailers. John Deere Intelligent Mobile Equipment Technologies enables innovative customer solutions through machine intelligence – guidance, telematics and other electronically enabled technologies. Many of these advanced technology services are based on global positioning (GPS) technology. John Deere Landscapes is the number-one wholesale distributor of irrigation, nursery, lighting and landscape materials in the United States. Its primary market includes professional landscape contractors. On May 7, 2007, Deere & Company completed its acquisition of LESCO, Inc., a leading supplier of lawn care, landscape, golf course and pest control products. The transaction roughly doubles the number of store locations for John Deere Landscapes. John Deere Wind Energy provides financial and project management support for the growing community wind-energy market, which often involves harvesting the wind that blows over the property of Deere’s equipment customers.
  2. Our mission is to distinctly serve those linked to the land John Deere is a global enterprise … with 47,000 employees in operations around the world. The map above reflects John Deere manufacturing operations in: Argentina, Brazil, Canada, China, Finland, France, Germany, India, Mexico, Netherlands, New Zealand, Russia, South Africa, Spain and the United States. John Deere has more than 90 total locations around the world, serving sales & marketing, research & development, credit, parts distribution and other key operations, in addition to manufacturing. A complete summary of worldwide locations can be found at the John Deere Web site, www.deere.com. Customers in more than 130 countries and operations around the world
  3. 2006 Financials In 2006, net income rose to $1.694 billion, up from $1.447 billion in 2005. Worldwide net sales and revenues increased to $22.148 billion, up from $21.931 billion in 2005. Values in the chart above represent the percentage of sales and revenue generated by each division. World’s premier farm equipment manufacturer $10.2 billion in sales – 2006
  4. We contribute We solve Unlike any other company Deere is in a very unique position when it comes to the climate change debate. Traditionally with manufacturers, the focus is on challenges associated with emissions from factories and buildings. That is just a small part of our story. Not only do our products have a emissions impact during their operating life and we are focusing on not only emissions technology but more energy-efficient technologies, we are also in a position to aid our customers/dealers to take advantage of potential carbon sequestration opportunities.
  5. WRI/WBCSD, released in December 2005, is a tool for determining the greenhouse gas emission reduction benefits of climate mitigation projects. The report rovides specific principles, concepts, and methods for quantifying and reporting GHG reductions -- i.e., the decreases in GHG emissions, or increases in removals and/or storage. It was produced using a collaborative process involving businesses, NGOs, governments, academics, and others. The Climate Leaders GHG Inventory Guidance is based on an existing protocol developed by the World Resources Institute and the World Business Council for Sustainable Development (WRI/WBCSD). The WRI/WBCSD GHG Protocol was developed through a collaborative process involving representatives from industry, government, and non-governmental organizations (NGOs). The WRI/WBCSD work was modified to fit more precisely what is needed for Climate Leaders. Climate Leaders Partners develop their GHG emissions inventory using the Climate Leaders GHG Inventory Guidance. Defines our boundaries of what we account for: Operational Control: We account for 100% of the GHG emissions from operations over which we have operational control – meaning we have the authority to introduce and implement our operating policies at the operation (we define as 50% or more ownership). We do not account for GHG emissions from operations in which we own an interest but do not have control (<50% ownership).
  6. Moving to where opportunities lie for GHG emission reduction, looking at Deere’s energy sinks… Direct: fuel burned onsite Indirect: purchased electricity / purchased steam
  7. Describe chart, axes, then cost, then geographic breakdown, then totals. 69% indirect, 31% direct From our 2003 Worldwide Baseline: Absolute emissions up 15% Energy costs up 30%
  8. Another of our strategy items is enhanced public communications. In 2005 during our annual climate review with the seniors we received approval to add climate change to our external website. In 2006, Deere’s climate program was cited by CERES as “last in our industrial sector”. Through interview with CERES Research Analyst, “Deere could have done better but activity still not visible enough to public”. Deere was based on our trigger assessment and monitoring of external factors, we proposed adding a global citizenship report to our strategy as part of our enhanced external communications
  9. After a review and analysis of voluntary programs presented to the Global Leadership Council in October 2006, we received approval to join the U.S. EPA Climate Leaders program followed by the BRT Climate RESOLVE program. We timed the EPA announcement with the program’s 5 th anniversary in March to align with the EPA’s communication plan. So why did we join EPA Climate Leaders? 80% of our emissions are from our US operations – this program has credibility – assistance – protection for early action. Next we will be setting a company GHG reduction goal. Whereas EPA’s CL is tactical, USCAP is strategic so through these two programs we are positioning/attacking the issue in two ways. Influencing legislation and documenting are work to reduce our emissions. IJD México (Monterrey, Components and Saltillo Plants). Since 2005 – voluntary program to report GHG emissions. 25x'25 Vision: By 2025, America's farms, forests and ranches will provide 25 percent of the total energy consumed in the United States, while continuing to produce safe, abundant, and affordable food, feed and fiber. "25x'25" is a rallying cry for renewable energy and a goal for America – to get 25 percent of our energy from renewable resources like wind, solar, and biofuels by the year 2025.
  10. USCAP: endorses market-based programs and a federal-level solution for reducing greenhouse gases. Why Deere joined believe time for action is now, want to ensure our customers’ interests represented, support market-based solution to climate change; driver of business globally Not just a group of companies; developing position papers on various topics to influence public policy Deere joined USCAP because it proposes a coherent and valuable framework that can lead to realistic solutions and timely actions. We believe John Deere lends an added perspective on biofuels and renewable energy sources that will assist in this important effort. By joining USCAP, Deere reinforces its commitment to helping find policy solutions that appropriately consider the needs of John Deere customers. Consistent with USCAP’s design principles, Deere believes effective policy to address global climate change ought to include the benefits of developing and supporting renewable energy sources such as biomass – both agriculture and forestry, wind and bio-technolgies, as well as processing and distribution improvements.
  11. Design of Deere’s PowerTech Plus ™ Tier 3 emission certified engines is the optimal engine for our major vehicle products. Through use of Cooled Exhaust Gas Recirculation, High Pressure Common Rail Injection Systems, and Deere developed and manufactured electronic control systems, our new 9.0L PowerTech Plus engines provide industry-leading fuel-economy, power density, transient response and well-managed heat rejection. Not only are Deere’s Tier 3 PowerTech Plus engines more fuel-efficient than the competition when worked at maximum load, they are more fuel-efficient than competition under typical field conditions where much of the work is at part load.
  12. The John Deere 8430, record holder as the most fuel-efficient, row-crop tractor ever tested at the Nebraska Tractor Test Lab, is equipped with Deere’s 9.0L PowerTech Plus engine. The 8430 is 8.8% more fuel efficient than the John Deere 8520 tractor it replaced.
  13. Deere is very supportive of the renewable fuels movement - supporting farmer customers growing and harvesting the feedstock used in renewable fuels and also using a significant amount of biodiesel fuel. Deere & Company Chairman & CEO Robert Lane has stated his support for the 25 x ‘25 initiative embracing increased energy independence for our country through use of 25% renewable sources of energy by the year 2025. Deere has allowed use of up to B5 (5% biodiesel) since 2001, and also has initiated a factory fill of B2 for all diesel-fueled vehicles manufactured in the U.S. Deere’s active work in the area of biodiesel has been recognized by the United Soybean Board and the National Biodiesel Board. Through active participation in the Engine Manufacturers Association, the National Biodiesel Board, and Euromot - Deere is working to promote the quality standards, handling and distribution of biodiesel fuels. We have begun the Product Verification and Validation program to assure compatibility of higher than B5 levels of biodiesel in our engines. And John Deere continues to work with state and federal authorities to craft and refine renewable energy policies.
  14. John Deere uses recycled or renewable materials in its products, in addition to the B2 biodiesel blend, such as corn- and soy-based plastics for components of our combines and some tractors. Shown: 9760 combine – shows side and back panels molded of soy- or corn-based plastics
  15. Farmers can earn credit thru no-till. No till is roughly defined as 2/3 of the soil undisturbed and 2/3 of the residue remaining (may be regional modification to definition) John Deere offers no-till equipment solutions through air seeders and drills. 1790 – 20 in Planters – any of the drawn planters (1750, 1760, 1770, 1780, 1790, DB planters) can be equipped for no-till with . . . John Deere 1770 NT Planter was awarded the 2006 No-Till Product of the Year at the 15 th Annual National No-Tillage Conference. Crop Production Practices to Sequester Carbon: Reduce tillage intensity Winter cover crop Rotational cropping system Increase production with soil inputs (fertilizer*) Sequestration is dependent upon: Climate Soil type Crop Management
  16. John Deere Ag Management Solutions, is the precision agriculture group of John Deere. Satellite-assisted guidance systems are the latest technological revolution in agriculture. These systems have brought more efficiency to planting, spraying, tillage, and harvesting by reducing overlap, saving fuel and chemicals, and reducing operator fatigue. In 1996, John Deere first introduced GPS technology to its agricultural customers and now offers a complete array of precision guidance products to agricultural customers around the world, including the GreenStar ™ 2 System, AutoTrac Guidance System, and APEX Software. John Deere’s GreenStar AutoTrac assisted steering system helps farmers conserve agricultural inputs while decreasing environmental impact and fuel consumption by using GPS to steer the vehicle down the field. In 2006, John Deere announced a completely automated system, iTECPro for Intelligent Total Equipment Control. Besides guiding the tractor precisely through the field, the system also automates implement controls, speed, and headland turns, further reducing input costs and fuel usage. How is global positioning system (GPS) technology used by farmers? Sensors on John Deere combines map yield and crop moisture. Using these maps, a farmer can determine the appropriate amount of seed and fertilizer to apply in specific areas of the field based on yield or soil types. RTK (Real Time Kinematic) Guidance systems can steer the equipment to within one-inch of its previous pass, enabling controlled traffic patterns in the field and allowing the vehicle operator to focus more attention on the equipment and implements. Precision Farming: Reduce overlap, maximize output Enable water management Precision placement of seed, chemical, fertilizer – improved nutrient use efficiency
  17. A new business entity established in 2005, John Deere Agri Services combines technology with knowledge to build services John Deere can offer throughout the agri-food value chain - from growers and their suppliers to processors and retailers. New technology-based services can help producers and others in the supply chain be more productive and efficient - creating new opportunities and more value by: Enabling more effective management of crop genetics and environmental conditions Improving quality, reducing variability and cost Enhancing decision-making Providing transparency across the supply chain John Deere AgriServices offers even higher levels of precision and efficiency in land use. Its OptiGro service, for example, uses digital aerial imaging to create maps from which agronomists can generate plot-specific prescriptions. These prescriptions can be downloaded to Swath Control Pro-equipped John Deere sprayers to deliver chemicals precisely and only where needed. The end result is uniform crop growth that increases yields and makes harvesting far more efficient while minimizing chemical use and field passes. AgriServices’ Soil Information Systems spots field-level soil variability using special machines that combine a suite of sensors with GPS to probe the soil and collect readings on soil compaction, texture, moisture, and resistivity at levels of resolution previously unavailable. Armed with 3D maps detailing physical and chemical soil variability at a sub-inch level of accuracy, producers can undertake soil management practices that enhance design, productivity, and conservation.
  18. John Deere Wind Energy is a business unit of John Deere Credit, the financial services arm of Deere & Co. John Deere got involved in wind energy for a variety of reasons: Investment in wind energy benefits rural economies where JD customers typically live Wind energy is an environmentally friendly source of renewable energy After close examination of the opportunities in in this arena- Deere has chosen to be a service provider—not a manufacturer. We provide Co-development, turbine supply, debt and equity investment to wind developers. In value proposition terms--- We align with developers of wind projects (ranging form the local landowner, or more sophisticated developers) to provide the items listed here.
  19. Wind turbines use no fuels, nor do they produce waste. Wind produces no air pollution, no water pollution and does not contribute to global warming.
  20. Keys to a Successful Project: Wind Resource Wind Turbines Energy Rates Financing Site & Interconnect At the end of 2006, John Deere’s wind energy business had 45 turbines in operation with generating capacity of 55 megawatts, representing an investment of $65 million. An additional $245 million in projects were under construction.
  21. 86% of Americans favorable to wind
  22. A climate solution can – and should – provide more economic opportunities than risks for industry and the economy. The USCAP approach to reducing greenhouse gas emissions and economic growth are not mutually exclusive. Deere is pleased to be involved in USCAP, given its focus on market-based solutions. And, we will be actively encouraging solutions that include development and support of renewable energy sources. We believe that such apporaches are in the best interest of the global society, as well as John Deere, our shareholders and our customers. Nutrient Use Efficiency Based on the 2001 USDA corn survey (latest detailed farmer cost data available), fertilizer addition comprises 54% of the total energy requirements for corn production (Figure 1). Nitrogen fertilizer addition is the most significant energy input in corn production, comprising 47% of the total energy for corn production. Practices that increase the efficiency of nitrogen use of which Deere participates in solutions include: Precision farming technology such as variable rate application and automatic guidance. Remote sensing and other nutrient sensing technologies. Multiple applications of nitrogen to get applications closer to the time of plant need. Precision placement of fertilizers. More recent practices that have increased the efficiency of field operations of which Deere participates in solutions include: Use of automatic guidance and automated steering technologies. Continued improvement in diesel engine fuel economy. Conservation tillage systems that reduce the number of tillage field passes. Conducting multiple operations in the same field pass (e.g. fertilization at the same time as planting, combination tillage tools, etc.). Field cruise technology.
  23. Renewable energy supporter: Helping to establish sustainable, alternative energy industries John Deere is committed to creating sustainable, alternative energy industries to ensure the world becomes less dependent on oil-based fuel sources. Laying the groundwork for growing sustainable businesses is critical to the future of renewable energy in the United States. We are working closely with customers, associations, and government agencies to ensure we can create business models and infrastructure that will enable us to realize the promise of renewable fuels. Many of our products and services - from agricultural to forestry to investments in wind energy - are helping establish this foundation. Actively engaged to make certain that policymakers get it right Education of legislators to help ensure that ag and forestry interests are able to participate in a market for carbon. Want to ensure opportunities for land-based offsets in a climate change package Need to educate members of Congress and develop a critical mass of votes supporting ag/forestry offsets for when we get to that point in the process Verifiable but it is not that easy to measure soil carbon. Verification could be very expensive and labor intensive and significantly reduce the payment that goes back to the farmer or forest land owner. Would not want customers to go out on the open market to purchase carbon to meet contractual requirements they thought they had on their land, but was not verifiable. Perhaps agree to a cropping practice but not a specific amount of carbon sequestered? Bingaman-Specter Climate Change bill language: Ag is given a 5% allocated credits set-aside, and the bill provides that within a year of enactment the USDA Secretary should prepare a report covering the extent of knowledge about GHG management and develop a standardized system of carbon soil measurement and certification. Before any equipment, need to know what we’re measuring first. Consistency, standardized system, scientifically defendable, verifiable