8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

Date of Report: November 26, 2008

(Date of earliest event reported)

DEERE & COMPANY

(Exact name of registrant as specified in its charter)

DELAWARE	1-4121	36-2382580
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

One John Deere Place

Moline, Illinois 61265

(Address of principal executive offices and zip code)

(309) 765-8000

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Items 2.02

and 8.01Results of Operations and Financial Condition and Other Events.

The following consists of Deere & Company’s press release dated November 26, 2008 concerning Fourth Quarter of fiscal 2008 financial results and supplemental financial information filed as Exhibit 99.1 to this report and incorporated by reference herein.

Item 9.01Financial Statements and Exhibits.

(d)Exhibits

(99.1)           Press release and supplemental financial information (Filed herewith)

Items 2.02

and 7.01Results of Operations and Financial Condition and Regulation FD Disclosure (Furnished herewith)

The attached schedules of Other Financial Information (Exhibit 99.2) and Fourth Quarter 2008 Earnings Conference Call information (Exhibit 99.3) are furnished under Form 8-K Items 2.02 and 7.01. The information is not filed for purposes of the Securities Exchange Act of 1934 and is not deemed incorporated by reference by any general statements incorporating by reference this report or future filings into any filings under the Securities Act of 1933 or the Securities Exchange Act of 1934, except to the extent Deere & Company specifically incorporates the information by reference.

2

Signature

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	DEERE & COMPANY
	By:	/s/ Mary K.W. Jones
		Mary K.W. Jones
		Secretary
Dated:  November 26, 2008

3

Exhibit Index

Number and Description of Exhibit

(99.1)	Press release and supplemental financial information (Filed herewith)
(99.2)	Other Financial Information (Furnished herewith)
(99.3)	Fourth Quarter 2008 Earnings Conference Call information (Furnished herewith)

4

EX-99.1

Exhibit 99.1

(Filed herewith)

NEWS RELEASE – November 26, 2008

For information, call:

Ken Golden

Director, Strategic Public Relations

309-765-5678

DEERE REPORTS EARNINGS OF $345 MILLION FOR QUARTER

AND RECORD $2.05 BILLION FOR FULL YEAR

·Fifth consecutive year of record net income.

·Disciplined asset management and conservative capital structure.

·Non-agricultural businesses also profitable for year.

·Results include pretax charge of approximately $50 million for previously disclosed factory shutdown.

MOLINE, Illinois (November 26, 2008) — Deere & Company today announced worldwide net income of $345.0 million, or $0.81 per share, for the fourth quarter ended October 31, compared with $422.1 million, or $0.94 per share, for the same period last year. For the full year, net income was a record $2.053 billion, or $4.70 per share, compared with $1.822 billion, or $4.00 per share, last year.

Worldwide net sales and revenues increased 21 percent, to $7.401 billion, for the fourth quarter and were up 18 percent, to $28.438 billion, for the full year. Net sales of the equipment operations were $6.734 billion for the quarter and $25.803 billion for the full year, compared with $5.423 billion and $21.489 billion for the respective periods last year.

“In the face of highly uncertain global economic conditions, John Deere has completed a fifth consecutive year of record earnings, reflecting our efforts to build and grow a great business,” said Robert W. Lane, chairman and chief executive officer. Agricultural equipment operations had their best year ever in 2008, he pointed out, and the company’s other equipment businesses remained solidly profitable on a full-year basis.  “Demand for productive agricultural machinery has continued to be strong due in large part to the financial health of the farm sector,

5

which has remained positive to date,” Lane said. “Deere’s performance has received further support from our successful credit operation, which is benefiting from strong asset quality and continued low losses.”

Summary of Operations

Net sales of the worldwide equipment operations increased 24 percent for the quarter and 20 percent for the year. Included were positive effects for currency translation and price changes of 3 percent for the quarter and 6 percent for the full year. Equipment net sales in the United States and Canada were up 16 percent for the quarter and 9 percent for the full year. Net sales outside the United States and Canada increased by 39 percent for the quarter and 40 percent for the year, including a positive currency-translation effect of 10 percent for the year.

Deere’s equipment operations reported operating profit of $549 million for the quarter and $2.927 billion for the year, compared with $511 million and $2.318 billion for the periods last year. The improvement for both periods was largely due to the favorable impact of higher shipment volumes and improved price realization, partially offset by increased raw material costs and higher research and development expenses. The quarter’s results included pretax expenses of approximately $50 million to close a facility in Canada, while higher selling, administrative and general expenses had an impact on the full year.

Equipment operations reported net income of $268 million for the quarter and $1.676 billion for the year, compared with $319 million and $1.429 billion last year. The same operating factors mentioned above, along with a higher effective tax rate, affected both the quarterly and full-year results. In addition, unfavorable currency translation had a negative effect on the quarter’s performance.

Trade receivables and inventories at the end of the quarter were $6.276 billion, or 24 percent of previous 12-month sales, compared with $5.392 billion, or 25 percent of sales, a year ago.

Financial services reported net income of $69.9 million for the quarter and $337.4 million for the full year versus $96.9 million and $363.7 million for the comparable periods last year. Results were lower for both periods primarily due to higher selling, administrative and general expenses, an increase in average leverage, unfavorable currency translation and a higher provision for credit losses. In addition, quarterly results were lower as a result of narrower financing spreads. Both periods benefited from growth in the average credit portfolio and increased commissions from crop insurance.

6

Company Outlook & Summary

“Given the sudden, sharp downturn in global economic activity, and the ongoing turmoil in world financial markets, the outlook for the year ahead is highly uncertain and its impact on John Deere’s operations is difficult to assess,” Lane said. “We have no doubt, however, that our ongoing focus on cost control and disciplined asset management, supported by a conservative capital structure and a lineup of advanced products and services, will allow the company to move ahead and compete successfully in today’s volatile markets.”

Subject to the economic uncertainties noted, company equipment sales are projected to be about flat for the full year of 2009 and up about 7 percent for the first quarter. Included in the forecast is a negative currency-translation impact of about 6 percent for both the full year and first quarter. Deere’s net income is forecast to be about $1.9 billion for 2009 and about $275 million for the first quarter.

In spite of the present economic situation, Deere remains encouraged by its growth prospects and believes that trends favorable to its businesses remain intact. These trends include increasing global demand for farm commodities and renewable fuels, as well as a growing need over time for shelter and infrastructure. “We’re proceeding with investments to capitalize on these positive developments,” Lane said. “They continue to hold considerable promise, in our view, and should bring benefit to the company and its investors for years to come.”

* * *

Equipment Division Performance

Agricultural. Sales increased 43 percent for the quarter and 37 percent for the full year, with improvement in both periods due to higher shipment volumes and improved price realization.  The favorable effects of currency translation also contributed to the full-year sales increase. Operating profit was $476 million for the quarter and $2.224 billion for the full year, compared with $388 million and $1.443 billion for the respective periods last year. Operating profit for both periods was higher primarily due to the favorable impact of higher shipment volumes and improved price realization, partially offset by higher raw material costs, and increases in selling, administrative and general expenses and research and development costs. Also affecting the quarter were expenses to close a facility in Canada.

Commercial & Consumer. Division sales declined 11 percent for the quarter and increased 2 percent for the full year. Sales for both periods were affected by lower shipment

7

volumes, partially offset by improved price realization. A landscapes operation, acquired in the third quarter of 2007, accounted for a 6 percent sales increase for full-year 2008. The division had an operating loss of $16 million for the quarter and an operating profit of $237 million for the full year, compared with last year’s operating loss of $11 million for the quarter and operating profit of $304 million for the year. The quarter’s operating loss was higher primarily due to expenses to close the Canadian factory noted above as well as higher raw material costs and lower shipment volumes. These factors were partially offset by improved price realization and lower selling, administrative and general expenses. The full-year decline in operating profit was primarily due to higher selling, administrative and general expenses in the landscapes operation and increased raw material costs. Partially offsetting these items for the year were improved price realization and a more favorable product mix.

Construction & Forestry. Sales were up 3 percent for the quarter and down 4 percent for the full year. Operating profit was $89 million for the quarter and $466 million for the year, versus $134 million and $571 million a year ago. Operating profit was lower for the quarter primarily due to higher raw material costs. The decline in operating profit for the year largely resulted from lower shipment volumes and higher raw material costs, partially offset by improved price realization.

Market Conditions & Outlook

As cited in statements above, the outlook for the coming year is highly uncertain and its impact on John Deere’s various businesses is unusually difficult to assess at this time.

Agricultural.  Worldwide sales of the company’s agricultural equipment are forecast to increase by about 5 percent for full-year 2009. This includes a negative currency-translation impact of about 8 percent.

Farm-machinery industry sales in the United States and Canada are forecast to be up about 5 percent for the year, led by an increase in large tractors and combines. The company expects agricultural commodity prices to remain at healthy levels in 2009, though below the previous year, while costs moderate for key inputs such as fuel and fertilizer. Sales of cotton equipment, small tractors, and equipment commonly used by livestock producers are expected to be lower.

Industry sales in Western Europe are forecast to be down 5 to 10 percent for the year.  Sales are expected to be down moderately in Central Europe and the CIS (Commonwealth of Independent States) countries, including Russia. While demand in these areas for highly

8

productive farm equipment remains good, sales will depend on the availability and cost of credit. Sales in South American markets are expected to be down 10 to 20 percent in 2009, with the decline related to credit access in Brazil and drought conditions in Argentina.

Commercial & Consumer.  Reflecting the U.S. housing slump and recessionary economic conditions, John Deere commercial and consumer equipment sales are projected to be down about 6 percent for the year. The division expects sales gains from new products to partly offset the impact of the slumping economy.

Construction & Forestry.  U.S. markets for construction and forestry equipment are forecast to remain under pressure due to further deterioration in the already-weakened housing sector, a steep decline in nonresidential construction, and negative economic growth. The global economic slowdown is expected to lead to a lower level of forestry equipment sales in both the United States and Europe. Subject to the economic uncertainties discussed earlier, Deere’s worldwide sales of construction and forestry equipment are forecast to decline by approximately 12 percent for the year. Despite the poor economic climate, company sales are expected to benefit from innovative new products.

Credit. Subject to the uncertainty associated with present economic conditions, full-year 2009 net income for Deere’s credit operations is forecast to be approximately $300 million. The forecast decrease from 2008 is primarily due to narrower financing spreads related to the current funding environment.

John Deere Capital Corporation

The following is disclosed on behalf of the company’s credit subsidiary, John Deere Capital Corporation (JDCC), in connection with the disclosure requirements applicable to its periodic issuance of debt securities in the public market.

JDCC’s net income was $57.7 million for the fourth quarter and $282.4 million for the full year, compared with net income of $82.8 million and $311.2 million for the respective periods last year. Results for both periods were lower primarily due to an increase in average leverage, higher selling, administrative and general expenses, unfavorable currency translation and an increase in the provision for credit losses. In addition, the quarterly results were lower due to narrower financing spreads. Both periods benefited from growth in the average credit portfolio and increased commissions from crop insurance.

9

Net receivables and leases financed by JDCC were $18.849 billion at October 31, 2008, compared with $18.648 billion last year. Net receivables and leases administered, which include receivables administered but not owned, totaled $19.012 billion at October 31, 2008, compared with $18.871 billion one year ago.

Safe Harbor Statement

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:  Statements under “Company Outlook and Summary,” “Market Conditions & Outlook,” and other statements herein that relate to future operating periods are subject to important risks and uncertainties that could cause actual results to differ materially.  Some of these risks and uncertainties could affect particular lines of business, while others could affect all of the Company’s businesses.

Forward-looking statements involve certain factors that are subject to change, including for the Company’s agricultural equipment segment the many interrelated factors that affect farmers’ confidence.  These factors include worldwide economic conditions, demand for agricultural products, world grain stocks, weather conditions, soil conditions, harvest yields, prices for commodities and livestock, crop and livestock production expenses, availability of transport for crops, the growth of non-food uses for some crops (including ethanol and bio-energy production), real estate values, available acreage for farming, the land ownership policies of various governments, changes in government farm programs and policies (including those in the U.S., Brazil and Argentina), international reaction to such programs, global trade agreements, animal diseases and their effects on poultry and beef consumption and prices (including avian flu and bovine spongiform encephalopathy, commonly known as “mad cow” disease), crop pests and diseases (including Asian rust), and the level of farm product exports (including concerns about genetically modified organisms).

Factors affecting the outlook for the Company’s commercial and consumer equipment segment include weather conditions, general economic conditions, customer profitability, consumer confidence, consumer borrowing patterns, consumer purchasing preferences, housing starts, infrastructure investment, spending by municipalities and golf courses, and consumable input costs.

General economic conditions, consumer spending patterns, real estate and housing prices, the number of housing starts and interest rates are especially important to sales of the Company’s construction equipment.  The levels of public and non-residential construction also impact the results of the Company’s construction and forestry segment.  Prices for pulp, lumber and structural panels are important to sales of forestry equipment.

10

All of the Company’s businesses and its reported results are affected by general economic conditions in, and the political and social stability of, the global markets in which the Company operates, especially material changes in economic activity in these markets; customer confidence in the general economic conditions; capital market disruptions; significant changes in capital market liquidity, access to capital and associated funding costs; changes in and the impact of governmental banking, monetary and fiscal policies; actions by rating agencies; customer access to capital for purchases of our products and borrowing and repayment practices, the number and size of customer loan delinquencies and defaults, and the sub-prime credit market crises; changes in the market values of investment assets; production, design and technological difficulties, including capacity and supply constraints and prices; the availability and prices of strategically sourced materials, components and whole goods; delays or disruptions in the Company’s supply chain due to weather, natural disasters or financial hardship of suppliers; start-up of new plants and new products; the success of new product initiatives and customer acceptance of new products; oil and energy prices and supplies; inflation and deflation rates, interest rates and foreign currency exchange rates, especially fluctuations in the value of the U.S. dollar; the availability and cost of freight; trade, monetary and fiscal policies of various countries; wars and other international conflicts and the threat thereof; actions by the U.S. Federal Reserve Board and other central banks; actions by the U.S. Securities and Exchange Commission; actions and regulations by environmental, health and safety regulatory agencies, including those related to engine emissions (in particular Tier 4 emission requirements), noise and the risk of global warming; actions by other regulatory bodies; actions of competitors in the various industries in which the Company competes, particularly price discounting; dealer practices especially as to levels of new and used field inventories; labor relations and regulations; changes to accounting standards; changes in tax rates and regulations; the effects of, or response to, terrorism; and changes in laws and regulations affecting the sectors in which the Company operates.  The spread of major epidemics (including influenza, SARS, fevers and other viruses) also could affect Company results.  Changes in weather patterns could impact customer operations and Company results.  Company results are also affected by changes in the level of employee retirement benefits, changes in market values of investment assets and the level of interest rates, which impact retirement benefit costs, and significant changes in health care costs.  Other factors that could affect results are acquisitions and divestitures of businesses, the integration of new businesses, changes in Company declared dividends and common stock issuances and repurchases.

With respect to the current global economic downturn, changes in governmental banking, monetary and fiscal policies to restore liquidity and increase the availability of credit may not be effective and could have a material impact on the Company’s customers and markets.  Recent

11

significant changes in market liquidity conditions could impact access to funding and associated funding costs, which could reduce our earnings and cash flows.  Our investment management operations could be impaired by changes in the equity and bond markets, which would negatively affect earnings.

General economic conditions can affect the demand for the Company’s equipment as well. Current negative economic conditions and outlook have dampened demand for certain equipment.

The current economic downturn and market volatility have adversely affected the financial industry in which John Deere Capital Corporation operates.  Capital Corporation’s liquidity and ongoing profitability depend largely on timely access to capital to meet future cash flow requirements and fund operations and the costs associated with engaging in diversified funding activities and to fund purchases of the Company’s products.  If current levels of market disruption and volatility continue or worsen, funding could be unavailable or insufficient.  Additionally, under current market conditions customer confidence levels may result in declines in credit applications and increases in delinquencies and default rates, which could materially impact Capital Corporation’s write-offs and provisions for credit losses.

The Company’s outlook is based upon assumptions relating to the factors described above, which are sometimes based upon estimates and data prepared by government agencies.  Such estimates and data are often revised.  The Company, except as required by law, undertakes no obligation to update or revise its outlook, whether as a result of new developments or otherwise.  Further information concerning the Company and its businesses, including factors that potentially could materially affect the Company’s financial results, is included in the Company’s most recent annual report on Form 10-K (including the factors discussed in Item 1A. Risk Factors) and other filings with the U.S. Securities and Exchange Commission.

12

Fourth Quarter and 2008 Press Release

(millions of dollars)

	Three Months Ended October 31							Twelve Months Ended October 31
	2008			2007			% Change	2008			2007			% Change
Net sales and revenues:
Agricultural equipment net sales	$	4,570		$	3,188		+43	$	16,572		$	12,121		+37
Commercial and consumer equipment net sales	915			1,027			-11	4,413			4,333			+2
Construction and forestry net sales	1,249			1,208			+3	4,818			5,035			-4
Total net sales *	6,734			5,423			+24	25,803			21,489			+20
Credit revenues	557			567			-2	2,190			2,094			+5
Other revenues	110			151			-27	445			499			-11
Total net sales and revenues *	$	7,401		$	6,141		+21	$	28,438		$	24,082		+18
Operating profit (loss): **
Agricultural equipment	$	476		$	388		+23	$	2,224		$	1,443		+54
Commercial and consumer equipment	(16		)	(11		)	+45	237			304			-22
Construction and forestry	89			134			-34	466			571			-18
Credit	102			145			-30	478			548			-13
Other	4			1			+300	15			5			+200
Total operating profit *	655			657				3,420			2,871			+19
Interest, corporate expenses and income taxes	(310		)	(235		)	+32	(1,367		)	(1,049		)	+30
Net income	$	345		$	422		-18	$	2,053		$	1,822		+13

*      Includes equipment operations outside the U.S. and Canada as follows:

Net sales	$	2,793	$	2,014	+39	$	10,735	$	7,660	+40
Operating profit	$	170	$	217	-22	$	1,096	$	779	+41

The company views its operations as consisting of two geographic areas, the “U.S. and Canada”, and “outside the U.S. and Canada”.

**Operating profit is income from continuing operations before external interest expense, certain foreign exchange gains and losses, income taxes and corporate expenses. However, operating profit of the credit segment includes the effect of interest expense and foreign exchange gains or losses.

13

DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
For the Three Months Ended October 31, 2008 and 2007
(In millions of dollars and shares except per share amounts)

	2008		2007
Net Sales and Revenues
Net sales	$	6,733.8	$	5,423.4
Finance and interest income	519.6		565.2
Other income	147.7		152.3
Total	7,401.1		6,140.9
Costs and Expenses
Cost of sales	5,282.5		4,054.2
Research and development expenses	270.5		231.4
Selling, administrative and general expenses	768.8		754.2
Interest expense	288.1		309.0
Other operating expenses	230.5		173.5
Total	6,840.4		5,522.3
Income of Consolidated Group before Income Taxes	560.7		618.6
Provision for income taxes	223.0		202.7
Income of Consolidated Group	337.7		415.9
Equity in income of unconsolidated affiliates	7.3		6.2
Net Income	$	345.0	$	422.1
Per Share Data
Net income - basic	$	.81	$	.96
Net income - diluted	$	.81	$	.94
Average Shares Outstanding
Basic	423.9		441.9
Diluted	427.2		448.1

See Notes to Interim Financial Statements.

14

DEERE & COMPANY
STATEMENT OF CONSOLIDATED INCOME
For the Years Ended October 31, 2008 and 2007
(In millions of dollars and shares except per share amounts)

	2008		2007
Net Sales and Revenues
Net sales	$	25,803.5	$	21,489.1
Finance and interest income	2,068.4		2,054.8
Other income	565.7		538.3
Total	28,437.6		24,082.2
Costs and Expenses
Cost of sales	19,574.8		16,252.8
Research and development expenses	943.1		816.8
Selling, administrative and general expenses	2,960.2		2,620.8
Interest expense	1,137.0		1,151.2
Other operating expenses	698.7		565.1
Total	25,313.8		21,406.7
Income of Consolidated Group before Income Taxes	3,123.8		2,675.5
Provision for income taxes	1,111.2		883.0
Income of Consolidated Group	2,012.6		1,792.5
Equity in income of unconsolidated affiliates	40.2		29.2
Net Income	$	2,052.8	$	1,821.7
Per Share Data
Net income - basic	$	4.76	$	4.05
Net income - diluted	$	4.70	$	4.00
Average Shares Outstanding
Basic	431.1		449.3
Diluted	436.3		455.0

See Notes to Interim Financial Statements.

15

DEERE & COMPANY
CONDENSED CONSOLIDATED BALANCE SHEET

As of October 31, 2008 and 2007

(In millions of dollars)

	2008		2007
Assets
Cash and cash equivalents	$	2,211.4	$	2,278.6
Marketable securities	977.4		1,623.3
Receivables from unconsolidated affiliates	44.7		29.6
Trade accounts and notes receivable - net	3,234.6		3,055.0
Financing receivables - net	16,017.0		15,631.2
Restricted financing receivables – net	1,644.8		2,289.0
Other receivables	664.9		596.3
Equipment on operating leases - net	1,638.6		1,705.3
Inventories	3,041.8		2,337.3
Property and equipment - net	4,127.7		3,534.0
Investments in unconsolidated affiliates	224.4		149.5
Goodwill	1,224.6		1,234.3
Other intangible assets - net	161.4		131.0
Retirement benefits	1,106.0		1,976.0
Deferred income taxes	1,440.6		1,399.5
Other assets	974.7		605.8
Total Assets	$	38,734.6	$	38,575.7
Liabilities and Stockholders’ Equity
Short-term borrowings	$	8,520.5	$	9,969.4
Payables to unconsolidated affiliates	169.2		136.5
Accounts payable and accrued expenses	6,393.6		5,632.2
Deferred income taxes	171.8		183.4
Long-term borrowings	13,898.5		11,798.2
Retirement benefits and other liabilities	3,048.3		3,700.2
Total liabilities	32,201.9		31,419.9
Stockholders’ equity	6,532.7		7,155.8
Total Liabilities and Stockholders’ Equity	$	38,734.6	$	38,575.7

See Notes to Interim Financial Statements.

16

DEERE & COMPANY
STATEMENT OF CONSOLIDATED CASH FLOWS
For the Years Ended October 31, 2008 and 2007
(In millions of dollars)

	2008			2007
Cash Flows from Operating Activities
Net income	$	2,052.8		$	1,821.7
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful receivables	95.4			71.0
Provision for depreciation and amortization	831.0			744.4
Share-based compensation expense	70.6			82.0
Undistributed earnings of unconsolidated affiliates	(18.7		)	(17.1		)
Provision (credit) for deferred income taxes	89.7			(4.2		)
Changes in assets and liabilities:
Trade, notes and financing receivables related to sales	(428.4		)	131.1
Inventories	(1,195.4		)	(357.2		)
Accounts payable and accrued expenses	702.1			418.6
Accrued income taxes payable/receivable	92.8			10.5
Retirement benefits	(133.2		)	(163.2		)
Other	(209.7		)	21.8
Net cash provided by operating activities	1,949.0			2,759.4
Cash Flows from Investing Activities
Collections of receivables	12,608.8			10,335.3
Proceeds from sales of financing receivables	45.2			141.4
Proceeds from maturities and sales of marketable securities	1,738.5			2,458.5
Proceeds from sales of equipment on operating leases	465.7			355.2
Proceeds from sales of businesses, net of cash sold	42.0			77.2
Cost of receivables acquired	(13,304.4		)	(11,388.3		)
Purchases of marketable securities	(1,141.4		)	(2,251.6		)
Purchases of property and equipment	(1,112.3		)	(1,022.5		)
Cost of equipment on operating leases acquired	(495.9		)	(461.7		)
Acquisitions of businesses, net of cash acquired	(252.3		)	(189.3		)
Other	(19.9		)	12.5
Net cash used for investing activities	(1,426.0		)	(1,933.3		)
Cash Flows from Financing Activities
Increase (decrease) in short-term borrowings	(413.0		)	99.4
Proceeds from long-term borrowings	6,320.2			4,283.9
Payments of long-term borrowings	(4,585.4		)	(3,136.5		)
Proceeds from issuance of common stock	108.9			285.7
Repurchases of common stock	(1,677.6		)	(1,517.8		)
Dividends paid	(448.1		)	(386.7		)
Excess tax benefits from share-based compensation	72.5			102.2
Other	(26.0		)	(11.2		)
Net cash used for financing activities	(648.5		)	(281.0		)
Effect of Exchange Rate Changes on Cash and Cash Equivalents	58.3			46.0
Net Increase (Decrease) in Cash and Cash Equivalents	(67.2		)	591.1
Cash and Cash Equivalents at Beginning of Year	2,278.6			1,687.5
Cash and Cash Equivalents at End of Year	$	2,211.4		$	2,278.6

See Notes to Interim Financial Statements.

17

Notes to Financial Statements

(1)	On November 14, 2007, a special meeting of stockholders was held authorizing a two-for-one stock split effected in the form of a 100 percent stock dividend to holders of record on November 26, 2007, distributed on December 3, 2007. All share and per share data (except par value) have been adjusted to reflect the effect of the stock split for all periods presented.
	The Company adopted FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, at the beginning of the first fiscal quarter of 2008. As a result of adoption, the Company recorded a reduction in the beginning retained earnings balance of $48 million.
(2)	Dividends declared and paid on a per share basis were as follows:

	Three Months Ended				Twelve Months Ended
	October 31				October 31
	2008		2007*		2008		2007*
Dividends declared	$	.28	$	.25	$	1.06	$	.91
Dividends paid	$	.28	$	.22	$	1.03	$	.851/2

* Adjusted for two-for-one stock split (see Note 1).

(3)	The calculation of basic net income per share is based on the average number of shares outstanding. The calculation of diluted net income per share recognizes the dilutive effect of the assumed exercise of stock options.
(4)	Comprehensive income, which includes all changes in the Company’s equity during the period except transactions with stockholders, was as follows in millions of dollars:

	Three Months Ended						Twelve Months Ended
	October 31						October 31
	2008			2007			2008			2007
Net income	$	345.0		$	422.1		$	2,052.8		$	1,821.7
Other comprehensive income (loss), net of tax*:
Minimum pension liability adjustment				65.8						65.8
Retirement benefits adjustment	(375.6		)				(305.3		)
Cumulative translation adjustment	(513.5		)	147.9			(406.0		)	329.1
Unrealized loss on investments	(3.3		)	(.8		)	(6.0		)	(1.0		)
Unrealized loss on derivatives	(27.5		)	(15.0		)	(32.5		)	(14.4		)
Comprehensive income (loss)	$	(574.9	)	$	620.0		$	1,303.0		$	2,201.2

*Does not include the incremental effect in 2007 on accumulated other comprehensive income from the adoption of FASB Statement No. 158, Employer’s Accounting for Defined Benefit Pension and Other Postretirement Plans, at October 31, 2007, as required by the new accounting standard.  The incremental effect from the adoption of the new Statement was a decrease in accumulated other comprehensive income (stockholders’ equity) of approximately $1.1 billion.

18

(5)The consolidated financial statements represent the consolidation of all Deere & Company’s subsidiaries.  In the supplemental consolidating data in Note 6 to the financial statements, “Equipment Operations” include the Company’s agricultural equipment, commercial and consumer equipment and construction and forestry operations, with Financial Services reflected on the equity basis.  The supplemental “Financial Services” data in Note 6 include primarily Deere & Company’s credit operations.

19

(6) SUPPLEMENTAL CONSOLIDATING DATA

STATEMENT OF INCOME

For the Three Months Ended October 31, 2008 and 2007

(In millions of dollars)

	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2008		2007		2008		2007
Net Sales and Revenues
Net sales	$	6,733.8	$	5,423.4
Finance and interest income	29.4		44.1		$	562.1	$	595.5
Other income	84.4		110.1		86.5		66.0
Total	6,847.6		5,577.6		648.6		661.5
Costs and Expenses
Cost of sales	5,282.9		4,054.5
Research and development expenses	270.5		231.4
Selling, administrative and general expenses	649.3		654.2		121.8		102.1
Interest expense	45.5		50.2		258.2		273.4
Interest compensation to Financial Services	56.4		59.7
Other operating expenses	87.5		55.5		163.4		139.5
Total	6,392.1		5,105.5		543.4		515.0
Income of Consolidated Group before Income Taxes	455.5		472.1		105.2		146.5
Provision for income taxes	187.4		153.1		35.6		49.6
Income of Consolidated Group	268.1		319.0		69.6		96.9
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Credit	67.2		95.6		.3
Other	9.7		7.5
Total	76.9		103.1		.3
Net Income	$	345.0	$	422.1	$	69.9	$	96.9

*Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes.  Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

20

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF INCOME
For the Years Ended October 31, 2008 and 2007

(In millions of dollars)

	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2008		2007		2008		2007
Net Sales and Revenues
Net sales	$	25,803.5	$	21,489.1
Finance and interest income	106.7		123.4		$	2,249.7	$	2,225.2
Other income	366.9		403.7		282.3		214.3
Total	26,277.1		22,016.2		2,532.0		2,439.5
Costs and Expenses
Cost of sales	19,576.2		16,254.0
Research and development expenses	943.1		816.8
Selling, administrative and general expenses	2,517.0		2,237.0		451.9		390.8
Interest expense	183.9		181.2		1,008.8		1,017.3
Interest compensation to Financial Services	232.4		246.4
Other operating expenses	192.7		157.8		579.3		478.8
Total	23,645.3		19,893.2		2,040.0		1,886.9
Income of Consolidated Group before Income Taxes	2,631.8		2,123.0		492.0		552.6
Provision for income taxes	955.6		693.8		155.6		189.3
Income of Consolidated Group	1,676.2		1,429.2		336.4		363.3
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Credit	327.5		360.8		1.0		.4
Other	49.1		31.7
Total	376.6		392.5		1.0		.4
Net Income	$	2,052.8	$	1,821.7	$	337.4	$	363.7

* Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

21

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
CONDENSED BALANCE SHEET
As of October 31, 2008 and 2007

(In millions of dollars)

	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2008		2007		2008		2007
Assets
Cash and cash equivalents	$	1,034.6	$	2,019.6	$	1,176.8	$	259.1
Marketable securities	799.2		1,468.2		178.3		155.1
Receivables from unconsolidated subsidiaries and affiliates	976.2		437.0				.2
Trade accounts and notes receivable – net	1,013.8		1,028.8		2,664.6		2,475.9
Financing receivables – net	10.4		11.0		16,006.6		15,620.2
Restricted financing receivables - net					1,644.8		2,289.0
Other receivables	599.3		524.0		67.7		74.2
Equipment on operating leases – net					1,638.6		1,705.3
Inventories	3,041.8		2,337.3
Property and equipment –net	2,991.1		2,721.4		1,136.6		812.6
Investments in unconsolidated subsidiaries and affiliates	2,811.4		2,643.4		5.5		5.1
Goodwill	1,224.6		1,234.3
Other intangible assets – net	161.4		131.0
Retirement benefits	1,101.6		1,967.6		5.4		9.0
Deferred income taxes	1,479.4		1,418.5		80.2		46.1
Other assets	456.7		347.6		519.6		259.3
Total Assets	$	17,701.5	$	18,289.7	$	25,124.7	$	23,711.1
Liabilities and Stockholders’ Equity
Short-term borrowings	$	217.9	$	129.8	$	8,302.7	$	9,839.7
Payables to unconsolidated subsidiaries and affiliates	169.2		136.5		931.5		407.4
Accounts payable and accrued expenses	5,675.8		5,126.8		1,165.2		957.9
Deferred income taxes	99.8		99.8		191.0		148.8
Long-term borrowings	1,991.5		1,973.2		11,906.9		9,825.0
Retirement benefits and other liabilities	3,014.6		3,667.8		34.8		33.1
Total liabilities	11,168.8		11,133.9		22,532.1		21,211.9
Stockholders’ equity	6,532.7		7,155.8		2,592.6		2,499.2
Total Liabilities and Stockholders’ Equity	$	17,701.5	$	18,289.7	$	25,124.7	$	23,711.1

* Deere & Company with Financial Services on the equity basis.

The supplemental data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

22

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

STATEMENT OF CASH FLOWS

For the Years Ended October 31, 2008 and 2007

(In millions of dollars)

	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2008			2007			2008			2007
Cash Flows from Operating Activities
Net income	$	2,052.8		$	1,821.7		$	337.4		$	363.7
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for doubtful receivables	10.6			7.5			84.7			63.5
Provision for depreciation and amortization	483.9			429.2			414.3			374.6
Undistributed earnings of unconsolidated subsidiaries and affiliates	210.3			207.7			(1.1		)	(.3		)
Provision (credit) for deferred income taxes	51.8			39.1			37.9			(43.3		)
Changes in assets and liabilities:
Receivables	(47.6		)	(38.8		)	1.4			(17.0		)
Inventories	(888.9		)	(87.9		)
Accounts payable and accrued expenses	540.9			329.8			155.8			104.0
Accrued income taxes payable/receivable	72.4			(5.1		)	20.4			15.6
Retirement benefits	(139.8		)	(172.1		)	6.7			9.0
Other	18.7			157.6			(117.7		)	(18.8		)
Net cash provided by operating activities	2,365.1			2,688.7			939.8			851.0
Cash Flows from Investing Activities
Collections of receivables							35,284.9			30,178.1
Proceeds from sales of financing receivables							88.8			229.9
Proceeds from maturities and sales of marketable securities	1,685.9			2,453.5			52.6			5.0
Proceeds from sales of equipment on operating leases							465.7			355.2
Proceeds from sales of businesses, net of cash sold	42.0			77.2
Cost of receivables acquired							(36,357.0		)	(31,195.0		)
Purchases of marketable securities	(1,059.0		)	(2,200.8		)	(82.4		)	(50.8		)
Purchases of property and equipment	(772.9		)	(557.3		)	(339.4		)	(465.2		)
Cost of equipment on operating leases acquired							(910.2		)	(825.6		)
Increase in investment in Financial Services	(494.7		)	(108.3		)
Acquisitions of businesses, net of cash acquired	(252.3		)	(189.3		)
Other	(28.5		)	11.1			(34.9		)	48.6
Net cash used for investing activities	(879.5		)	(513.9		)	(1,831.9		)	(1,719.8		)
Cash Flows from Financing Activities
Increase (decrease) in short-term borrowings	77.5			(208.0		)	(490.5		)	307.5
Change in intercompany receivables/payables	(568.8		)	67.6			568.8			(67.6		)
Proceeds from long-term borrowings							6,320.2			4,283.8
Payments of long-term borrowings	(20.1		)	(7.8		)	(4,565.3		)	(3,128.7		)
Proceeds from issuance of common stock	108.9			285.7
Repurchases of common stock	(1,677.6		)	(1,517.8		)
Capital investment from Equipment Operations							494.7			108.3
Dividends paid	(448.1		)	(386.7		)	(565.3		)	(588.1		)
Excess tax benefits from share-based compensation	72.5			102.2
Other	.1			3.7			(26.2		)	(14.9		)
Net cash provided by (used for) financing activities	(2,455.6		)	(1,661.1		)	1,736.4			900.3
Effect of Exchange Rate Changes on Cash and Cash Equivalents	(15.0		)	29.2			73.4			16.8
Net Increase (Decrease) in Cash and Cash Equivalents	(985.0		)	542.9			917.7			48.3
Cash and Cash Equivalents at Beginning of Year	2,019.6			1,476.7			259.1			210.8
Cash and Cash Equivalents at End of Year	$	1,034.6		$	2,019.6		$	1,176.8		$	259.1

*Deere & Company with Financial Services on the equity basis.

The supplemental consolidating data is presented for informational purposes. Transactions between the “Equipment Operations” and “Financial Services” have been eliminated to arrive at the consolidated financial statements.

23

EX-99.2

Exhibit 99.2

 (Furnished herewith)

Deere & Company

Other Financial Information

For the Twelve Months Ended October 31,	Equipment Operations						Agricultural Equipment						Commercial and Consumer  Equipment						Construction and Forestry
Dollars in millions	2008			2007			2008			2007			2008			2007			2008			2007
Net Sales	$	25,803		$	21,489		$	16,572		$	12,121		$	4,413		$	4,333		$	4,818		$	5,035
Average Identifiable Assets
With Inventories at LIFO	$	9,652		$	8,092		$	5,359		$	4,036		$	1,837		$	1,672		$	2,456		$	2,384
With Inventories at Standard Cost	$	10,812		$	9,205		$	6,161		$	4,789		$	2,010		$	1,860		$	2,641		$	2,556
Operating Profit	$	2,927		$	2,318		$	2,224		$	1,443		$	237		$	304		$	466		$	571
Percent of Net Sales	11.3		%	10.8		%	13.4		%	11.9		%	5.4		%	7.0		%	9.7		%	11.3		%
Operating Return on Assets
With Inventories at LIFO	30.3		%	28.6		%	41.5		%	35.8		%	12.9		%	18.2		%	19.0		%	24.0		%
With Inventories at Standard Cost	27.1		%	25.2		%	36.1		%	30.1		%	11.8		%	16.3		%	17.6		%	22.3		%
SVA Cost of Assets	$	(1,284	)	$	(1,094	)	$	(739	)	$	(574	)	$	(228	)	$	(213	)	$	(317	)	$	(307	)
SVA	$	1,643		$	1,224		$	1,485		$	869		$	9		$	91		$	149		$	264

For the Twelve Months Ended October 31,	Financial Services
Dollars in millions	2008			2007
Net Income	$	337		$	364
Average Equity	$	2,355		$	2,524
Return on Equity	14.3		%	14.4		%
Operating Profit	$	493		$	553
Change in Allowance for Doubtful Receivables	$	(4	)	$	17
SVA Income	$	489		$	570
Average Equity	$	2,355		$	2,524
Average Allowance for Doubtful Receivables	$	183		$	167
SVA Average Equity	$	2,538		$	2,691
Cost of Equity	$	(430	)	$	(480	)
SVA	$	59		$	90

The Company evaluates its business results on the basis of generally accepted accounting principles. In addition, it uses a metric referred to as Shareholder Value Added (SVA), which management believes is an appropriate measure for the performance of its businesses. SVA is, in effect, the pretax profit left over after subtracting the cost of enterprise capital. The Company is aiming for a sustained creation of SVA and is using this metric for various performance goals. Certain compensation is also determined on the basis of performance using this measure. For purposes of determining SVA, each of the equipment segments is assessed a pretax cost of assets, which on an annual basis is 12 percent of the segment’s average identifiable operating assets during the applicable period with inventory at standard cost. Management believes that valuing inventories at standard cost more closely approximates the current cost of inventory and the Company’s investment in the asset. Financial Services is assessed a pretax cost of equity, which on an annual basis is approximately 18 percent of its average equity during the period excluding the allowance for doubtful receivables. The cost of assets or equity, as applicable, is deducted from the operating profit or added to the operating loss of the equipment segments or Financial Services to determine the amount of SVA. For this purpose, the operating profit of Financial Services is net income before income taxes and changes to the allowance for doubtful receivables. The average equity and operating profit of Financial Services is adjusted for the allowance for doubtful receivables in order to more closely reflect credit losses on a write-off basis.

24

EX-99.3

Exhibit 99.3

(Furnished herewith)

Fourth Quarter 2008 Earnings Conference Call 26 November 2008 Exhibit 99.3 (Furnished herewith) 25

Safe Harbor Statement & Disclosures The earnings call and accompanying material include forward-looking comments and information concerning the company’s projections, plans and objectives for the future, including estimates and assumptions with respect to economic, political, technological, weather, market acceptance and other factors that impact our businesses and customers. They also may include financial measures that are not in conformance with GAAP (accounting principles generally accepted in the United States of America). Words such as “forecast,” “projection,” “outlook,” “prospects,” “expected,” “estimated,” “will,” “plan,” “anticipate,” “intend,” “believe,” or other similar words or phrases often identify forward-looking statements. Actual results may differ materially from those projected in these forward-looking statements based on a number of factors and uncertainties. Additional information concerning factors that could cause actual results to differ materially is contained in the company’s most recent Form 8-K and periodic report filed with the Securities and Exchange Commission, and is incorporated by reference herein. Investors should refer to and consider the incorporated information on risks and uncertainties in addition to the information presented here. Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, financial measures prepared in accordance with GAAP. The company, except as required by law, undertakes no obligation to update or revise its forward-looking statements whether as a result of new developments or otherwise. The call and accompanying materials are not an offer to sell or a solicitation of offers to buy any of the company’s securities. 26

Fourth Quarter Overview -18% $422 $345 Net Income -14% $.94 $.81 Diluted EPS +24% $5,423 $6,734 Net Sales +21% $6,141 $7,401 Net Sales and Revenues Change Q4 2007 Q4 2008 (in millions of dollars except per share amounts) 27

Additional Supplemental Data Fourth Quarter 2008 NOTE: Due to the magnitude of the amount for the item listed above in the quarter, management believes the above additional supplemental data provides valuable insight into the operating performance for the fourth quarter of 2008. Management believes this presentation will enhance the reader’s understanding of the impact of this item on Deere & Company’s performance during the quarter. Management does not intend this presentation to be considered in isolation or as a substitute for the related measures under accounting principles generally accepted in the U.S. * Item was not included in the earnings release of 13 August 2008. Event was previously disclosed in press release of 2 September 2008 and Form 10-Q for third quarter filed on 2 September 2008 Net income, as reported $345.0 $0.81 Estimated expenses related to Welland factory closing (not included in 13 August 2008 guidance) 35.0* 0.08 Estimated income excluding special item $380.0 $0.89 (In Millions) Diluted EPS 28

Fourth Quarter Overview Net Sales • Equipment operations net sales: Up ~ 24% in Q4 2008 vs. Q4 2007 – Currency translation: Flat – Price realization: ~ +3 points 29

*Percentage change from same period in previous year, excluding purchased product. Production Tonnage* (12) (8) (10) Worldwide C&F +12 +29 +36 U.S. and Canada AG (6) +31 +28 Outside U.S. and Canada (2) +13 +22 Total U.S. and Canada (10) (3) +14 Worldwide C&CE Flat +32 +35 Worldwide AG (3) +12 +18 +24 Total Worldwide FY 2009 Forecast Q1 2009 Forecast FY 2008 Actual Q4 2008 Actual % Change Deere & Company Forecast as of 26 November 2008 30

2009 Company Outlook • Outlook for 2009 is highly uncertain due to global economic conditions and turmoil in world financial markets. • First Quarter 2009 Forecast – Net sales up ~ 7% vs. Q1 2008 • Currency translation: ~ (6) points • Price realization: ~ +5 points – Net income of ~ $275 million • Fiscal Year 2009 Forecast – Net sales flat from FY 2008 • Currency translation: ~ (6) points • Price realization: ~ +7 points – Net Income of ~ $1.9 billion Deere & Company Forecast as of 26 November 2008 31

Worldwide Agricultural Equipment Fourth Quarter Overview +23% $388 $476 Operating Profit* +35% Production Tonnage +43% $3,188 $4,570 Net Sales Change Q4 2007 Q4 2008 (in millions of dollars) *Operating profit impacted by: – Higher shipment volumes – Improved price realization – Higher raw material costs – Higher SA&G and R&D expenses – Closure of facility in Canada Incremental Margin ~ 6% 32

$0.65 $13.50 $7.74 $5.50 Previous 2008/09 $0.58 $10.60 $6.92 $4.45 Previous 2007/08 $0.55 $9.20 $6.00 $4.15 2009/10 Forecast $0.52 $9.30 $6.50 $4.25 2008/09 Forecast $0.57 $10.10 $7.35 $4.30 2007/08 Cotton (per pound) Soybeans (per bushel) Wheat (per bushel) Corn (per bushel) U.S. Commodity Price Estimates Deere & Company Forecast as of 26 November 2008 (Previous Forecast as of 13 August 2008) 33

Deere & Company Forecast as of 26 November 2008 U.S. Farm Prices Source: Actual data from Wall Street Journal 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 Jan-02 Apr-02 Jul-02 Oct-02 Jan-03 Apr-03 Jul-03 Oct-03 Jan-04 Apr-04 Jul-04 Oct-04 Jan-05 Apr-05 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Jan-09F Apr-09F Jul-09F Oct-09F Soybeans Corn Wheat 34

U.S. Farm Production Cost / Profitability* • Variable production costs: • Prices at which farmers still make good money: $6.50 to $7.00 Soybeans $5.40 to $5.80 Wheat $3.10 to $3.30 Corn 2009 2008 $3.57 $3.27 Soybeans $3.18 $2.84 Wheat $2.36 $2.02 Corn *Source: Informa Economics; estimates based on production costs as of 14 November 2008 35

U.S. Farm Cash Receipts 323.9 10.3 144.8 168.8 2009 Forecast 346.6 13.3 137.5 195.8 Previous 2008 354.7 10.3 138.4 206.0 Previous 2009 336.8 13.3 140.5 183.0 2008 Forecast 296.8 11.9 137.9 147.0 2007 Total Cash Receipts Government Payments Livestock Crops (in billions of dollars) Deere & Company Forecast as of 26 November 2008 (Previous Forecast as of 13 August 2008) 36

Agricultural Equipment Retail Sales Industry Outlook • U.S. and Canada: Up ~ 5% for Fiscal 2009 – Increase in large tractors and combines – Agricultural commodity prices at healthy levels, though below 2008 levels – Cotton equipment, small tractors, and equipment commonly used by livestock producers projected lower • South America: Down 10% - 20% for Fiscal 2009 – Credit access in Brazil – Drought conditions in Argentina Deere & Company Forecast as of 26 November 2008 37

Farm Net Income Brazil and Argentina • Factors influencing farm net income in 2009: – Customers’ access to credit – Increase in input costs – Reduction in planted area – Drought conditions in Argentina – Future of Argentina farming sector will depend more on political decisions (retenciónes), than on economic conditions Deere & Company Forecast as of 26 November 2008 (6.0) - 8.0 3.4 5.1 (2.0) - 6.0 15.4 9.0 2009 Forecast Range 2008 Forecast 2007 2009 Forecast Range 2008 Forecast 2007 Argentina Brazil (in billions of U.S. dollars) 38

Bank 30% Farmer 25% Agribusiness* 45% Farmer 50% Bank 24% Agribusiness* 26% 2007/08 Crop: Brazilian Soybean Crop Funding Additional Funding Pressure on Farmers 2008/09 Crop: *Agribusiness includes seed, fertilizer, agrochemical and trading companies Source: Agroconsult October 2008 39

European (EU-27) Agricultural Update • 2009 outlook: business back to normal – Margins and mood back at normal levels – Improvements for pork sector – Rural finance intact in Western Europe • Medium-term prospects – Policy shift towards more rural development – Higher degree of specialization – Slight shift to cash crops from livestock farming – Income up in new member states Deere & Company Forecast as of 26 November 2008 40

Agricultural Equipment Retail Sales Industry Outlook • Western Europe – Down 5% - 10% for Fiscal 2009 • Central Europe and the Commonwealth of Independent States countries, including Russia – Down moderately – Good demand, but depends on access to credit markets Deere & Company Forecast as of 26 November 2008 41

Worldwide Agricultural Equipment Deere & Company Outlook • Fiscal Year 2009 Forecast – Net sales projected to be up ~ 5% • Currency translation ~ (8) points Deere & Company Forecast as of 26 November 2008 42

Worldwide Commercial & Consumer Equipment Fourth Quarter Overview +45% -$11 -$16 Operating Loss* +14% Production Tonnage -11% $1,027 $915 Net Sales Change Q4 2007 Q4 2008 (in millions of dollars) *Operating Loss impacted by: – Closure of facility in Canada – Higher raw material costs – Lower shipment volumes – Improved price realization – Lower SA&G expenses Incremental Margin ~ 4% 43

Worldwide Commercial & Consumer Equipment Deere & Company Outlook • Fiscal Year 2009 Forecast – Net sales projected to be down ~ 6% • U.S. housing slump • Recessionary economic conditions • Partially offset by new products Deere & Company Forecast as of 26 November 2008 44

Worldwide Construction & Forestry Fourth Quarter Overview -34% $134 $89 Operating Profit* -10% Production Tonnage +3% $1,208 $1,249 Net Sales Change Q4 2007 Q4 2008 (in millions of dollars) *Operating Profit impacted by: – Higher raw material costs 45

Worldwide Construction & Forestry Strong Performance in Challenging Market Conditions Full Year 2008 17.6% Operating Return on Assets (OROA) 9.7% Operating Return on Sales Note: For reconciliation of OROA to GAAP, please see “Reconciliation to GAAP” slide in Appendix 46

Worldwide Construction & Forestry Deere & Company Outlook • Fiscal Year 2009 Forecast – Net sales projected to be down ~ 12% • U.S. economic factors • Housing starts at 0.6 - 0.7 million • Non-residential spending down ~ 15% • GDP growth of ~ (1%) • Global forestry markets down • Partially offset by new products Deere & Company Forecast as of 26 November 2008 47

• China – June 2008 - acquired 50 percent of Xuzhou Xuwa Excavator Machinery Co., Ltd. (XCG) – First domestic manufacturing operation for the division in China • India – September 2008 - announced plans to form a joint venture with Ashok Leyland Limited – Manufacture and market backhoes and four-wheel-drive loaders – Currently evaluating site locations – Initial production planned for early 2010 Worldwide Construction & Forestry Expanding Global Footprint 48

Ag Fin Svc 7% Ag 62% C&CE 11% C&F 20% John Deere Capital Corporation is a U.S. subsidiary of John Deere Credit Company and is included in the information above Portfolio Composition by Market: Credit Worldwide $22.2 billion Owned Portfolio as of 31 October 2008 49

Portfolio Composition by Geography: Australia 2% Latin America 4% Europe 9% U.S. 75% Canada 10% Portfolio Composition by Product: Credit Worldwide $22.2 billion Owned Portfolio as of 31 October 2008 Other 1% Revolving Credit 9% Leasing 12% Installment Financing 60% Wholesale / Floorplan 18% John Deere Capital Corporation is a U.S. subsidiary of John Deere Credit Company and is included in the information above 50

Credit Credit Loss History • Low losses driven by: – Strong farmer cash flows – Ag & C&CE dealer reserves – Rigorous underwriting standards – Robust collection practices – Strong used equipment values Provision for Credit Losses / Average Owned Portfolio 0.00% 0.50% 1.00% 1.50% 2.00% 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 51

John Deere Capital Corporation Retail Notes 60+ Days Past Due vs. Write-offs Retail Note Losses & Past Dues 0.67% -0.05% 0.35% 0.75% 1.15% 1.55% 1.95% 2.35% 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Net Write-offs Installments 60+ DPD Note: 1982 – 1985 includes Construction; 1986 - 1994 includes Lawn & Grounds Care; As % of Owned Losses After Dealer Reserve Charges Source: 1982 – 1994 internal reporting, 1995 - 2007 JDCC 10K’s; 2008 internal reporting • Agricultural Equipment – Extremely low write-offs; average 12 bps for last 10 years – Even in the severe Ag market of the 1980s, losses were comparatively low 52

John Deere Capital Corporation Retail Notes 60+ Days Past Due vs. Write-offs Retail Note Losses & Past Dues 2.11% 1.01% -0.05% 0.35% 0.75% 1.15% 1.55% 1.95% 2.35% 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 Net Write-offs Installments 60+ DPD Source: 1995 - 2007 JDCC 10K’s; 2008 internal reporting • Construction and Forestry – 2008 performed in line with historical average despite severe economic pullback in construction 53

Credit • Fourth Quarter 2008 – Net income of ~ $67 million • Higher SA&G expenses • Increase in average leverage • Unfavorable currency translation • Higher provision for credit losses • Narrower financing spreads • Growth in average credit portfolio • Increased commissions from crop insurance • Fiscal Year 2009 Forecast – Net income of ~ $300 million Deere & Company Forecast as of 26 November 2008 54

Consolidated Trade Receivables & Inventory Change at 31 October: 2008 vs. 2007, 2009 vs. 2008 763 925 25 25 875 2008 Prior Forecast 75 75 125 75 125 2009 Forecast 884 Total, as reported 1,290 Total, constant exchange C&F CCE AG (in millions of dollars) 53 51 886 2008 Actual Deere & Company Forecast as of 26 November 2008 (Previous Forecast as of 13 August 2008) 55

20% 25% 30% 35% 40% 45% 50% 55% 60% ‘00 Q3 Q4 ‘01 Q1 Q2 Q3 Q4 ‘02 Q1 Q2 Q3 Q4 ‘03 Q1 Q2 Q3 Q4 ‘04 Q1 Q2 Q3 Q4 ‘05 Q1 Q2 Q3 Q4 ‘06 Q1 Q2 Q3 Q4 ‘07 Q1 Q2 Q3 Q4 ‘08 Q1 Q2 Q3 Q4 Receivables & Inventory to Previous 12 Months Sales Prior Year Current Year Consolidated Trade Receivables & Inventory • Continued strong asset management in 2008 56

triple digits double digits more than industry low double digit Deere** 9% 4WD Tractors 38% Combines 19% 9% Industry* Row-Crop Tractors Utility Tractors * As reported by the Association of Equipment Manufacturers ** As reported to the Association of Equipment Manufacturers October Retail Sales U.S. and Canada 57

(at 31 October – in units as a % of trailing 12 months retail sales) 2007 2008 1% 2% Combines 11% 21% Row-Crop Tractors As reported to the Association of Equipment Manufacturers Deere Dealer Inventories U.S. and Canada 58

October 2008 Retail Sales Western Europe single digit Flat Deere & Company Combines Tractors Based on EU Government Reporting of Registrations 59

single digit First-in-the-Dirt Flat Settlements Construction & Forestry low double digit Commercial & Consumer Equipment Deere & Company October 2008 Retail Sales U.S. and Canada 60

Liquidity and Bank Support • In the past eight weeks, successful access to commercial paper market – Typically issuing more than $700 million per week – Weighted average term ~25 days – Majority of commercial paper outstanding matures after 31 December 2008 • Ahead of last year’s pace • $4.5B credit facility supporting commercial paper – Have not drawn on facility – $1.7 billion incremental capacity • To be prudent: – $400M capital infusion into JDCC in October – Not currently repurchasing shares 61

Material Costs and Freight Equipment Operations • Fourth Quarter 2008 – Up ~ $305 million vs. Q4 2007 • Fiscal Year 2008 – Up ~ $550 million vs. FY2007 – By division • Agricultural Equipment: ~ $405 • Commercial & Consumer Equipment: ~ $ 65 • Construction & Forestry: ~ $ 80 – Previous forecast up $425 - $475 million Previous Forecast as of 13 August 2008 62

2009 Material Costs and Freight Equipment Operations • Fiscal Year 2009 – Up $500 - $900 million vs. FY2008 – By division • Agricultural Equipment: $350 - $625 • Commercial & Consumer Equipment: $ 75 - $125 • Construction & Forestry: $ 75 - $150 Deere & Company Forecast as of 26 November 2008 63

Research & Development Expense Equipment Operations • Fourth Quarter 2008 – Up ~ 17% vs. Q4 2007 • Fiscal Year 2008 – Up ~ 15% vs. FY2007 • Currency translation ~ 2 points – Previous forecast ~ 16% • Currency translation ~ 3 points • Fiscal Year 2009 – Up ~ 5% vs. FY2008 Deere & Company Forecast as of 26 November 2008 (Previous Forecast as of 13 August 2008) 64

Selling, Administrative & General Expense Equipment Operations • Fourth Quarter 2008 – Flat vs. Q4 2007 • Includes ~ 5 points related to global growth initiatives • Fiscal Year 2008 – Up ~ 13% vs. FY 2007 • Includes ~ 9 points related to global growth initiatives and currency translation – Previous forecast ~ 16% • Included ~ 10 points related to global growth initiatives and currency translation • Fiscal Year 2009 – Up ~ 2% vs. FY 2008 Deere & Company Forecast as of 26 November 2008 (Previous Forecast as of 13 August 2008) 65

Tax Rate Equipment Operations • Fourth Quarter 2008 – Effective tax rate of ~ 41% • Shift in geographic mix of income • Distributions of non-U.S. income • Partially offset by R&D tax credit • Fiscal year 2008 – Effective tax rate of ~ 36% • Previous forecast of ~ 36% • Fiscal Year 2009 Forecast – Assumes tax rate of ~ 35% Deere & Company Forecast as of 26 November 2008 (Previous Forecast as of 13 August 2008) 66

Other Information Fiscal Year 2008 • Equipment Operations – Capital Expenditures • ~ $773 million • Previous forecast ~ $775 million – Depreciation and Amortization • ~ $484 million – Pension/OPEB Contributions • ~ $430 million • Financial Services – Capital Expenditures • ~ $339 million • Primarily Wind Previous Forecast as of 13 August 2008 67

Other Information Fiscal Year 2009 Forecast • Equipment Operations – Capital Expenditures • ~ $1.0 billion – Depreciation and Amortization • ~ $525 million – Pension/OPEB Contributions • ~ $170 million • Financial Services – Capital Expenditures • ~ $125 million • Primarily Wind Deere & Company Forecast as of 26 November 2008 68

Appendix 69

Share Repurchase as Part of Publicly Announced Plans Total $ Amount (in billions) Shares Repurchased* (in millions) FY2008 $0.5 5.8 Q1 $1.7 21.2 Total $0.4 4.8 Q4 $0.3 4.5 Q3 $0.5 6.1 Q2 Total $ Amount (in billions) Shares Repurchased* (in millions) Actual $0.2 5.9 2004 $3.9 93.3 Total $1.5 25.7 2007 $1.3 34.0 2006 $0.9 27.7 2005 • Cumulative cost of repurchases since 2004: $5.6 billion • Balance remaining on May 2007 40-million share authorization: 13.7 million • May 2008 share authorization: $5.0 billion • 2008 period ending shares: 422.3 million * All shares adjusted for two-for-one stock split effective 26 November 2007 70

in millions of dollars, unless indicated 2008 Operating Profit 466 $ Average Identifiable Assets With Inventory @ LIFO 2,456 $ With Inventory @ Std Cost 2,641 $ OROA @ LIFO 19.0% (Operating Profit / Average Assets) OROA @ Standard Cost 17.6% (Operating Profit / Average Assets) OROA Reconciliation to GAAP Worldwide Construction and Forestry 71

Deere’s first quarter 2009 conference call is scheduled for 9:00 a.m. central time on Wednesday, February 18, 2009 72