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: May 20, 2009

(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 May 20, 2009 concerning Second Quarter of fiscal 2009 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 Second Quarter 2009 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/ Gregory R. Noe
		Gregory R. Noe
		Secretary
Dated:  May 20, 2009

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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)	Second Quarter 2009 Earnings Conference Call information (Furnished herewith)

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EX-99.1

Exhibit 99.1

(Filed herewith)

FOR RELEASE: May 20, 2009

For more information:

Ken Golden

Director, Strategic Public Relations

Deere & Company

309-765-5678

DEERE REPORTS SECOND-QUARTER EARNINGS OF $472 MILLION

·Company remains solidly profitable in face of global economic slowdown.

·U.S. market for agricultural equipment continues on strong pace.

·Focus on rigorous asset management yields positive results.

·Strong liquidity position and access to capital markets maintained.

MOLINE, Illinois (May 20, 2009) — Deere & Company today announced worldwide net income of $472.3 million, or $1.11 per share, for the second quarter ended April 30, compared with $763.5 million, or $1.74 per share, for the same period last year. For the first six months of the year, net income was $676.2 million, or $1.60 per share, compared with $1.133 billion, or $2.56 per share, last year.

Worldwide net sales and revenues declined 17 percent, to $6.748 billion, for the second quarter and were down 11 percent to $11.894 billion for six months compared with a year ago. Net sales of the equipment operations were $6.187 billion for the quarter and $10.747 billion for six months, compared with $7.469 billion and $11.999 billion last year.

“John Deere has completed a profitable quarter and is successfully executing plans to maintain solid performance in today’s difficult economic environment,” said Robert W. Lane, chairman and chief executive officer. “We are benefiting from a strong market for large farm machinery in the United States and from our continued focus on balancing production with retail activity.” At the same time, the global recession and volatile foreign exchange rates have put pressure on overall results. “Clearly, operations dependent on construction activity and consumer spending are feeling the full impact of the sharp downturn,” Lane said. Also of note, the company has continued to benefit from a strong liquidity position and access to global capital markets on a competitive basis.

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Summary of Operations

Net sales of the worldwide equipment operations decreased 17 percent for the quarter and 10 percent for six months. Sales for both periods included price increases of 6 percent offset by an unfavorable currency-translation effect of 6 percent. Equipment net sales in the United States and Canada decreased 8 percent for the quarter and 5 percent year to date. Net sales outside the United States and Canada decreased 30 percent for the quarter and 18 percent for six months with an unfavorable currency-translation effect of 13 percent for both periods.

Deere’s equipment operations reported operating profit of $628 million for the quarter and $935 million for six months, compared with $1.102 billion and $1.559 billion last year. The deterioration in both periods primarily was due to lower shipment and production volumes, higher raw-material costs and the unfavorable effects of foreign exchange, partially offset by improved price realization.

Equipment operations reported net income of $406 million for the quarter and $560 million for six months, compared with $666 million and $930 million last year. The same operating factors mentioned above, along with a lower effective tax rate, affected both quarterly and six-month results.

The company’s focus on asset management continued to produce improved results. Trade receivables and inventories at the end of the quarter were $7.924 billion, or 32 percent of previous 12-month sales, compared with $8.200 billion, or 35 percent of sales, a year ago.

Financial services reported net income of $68.9 million for the quarter and $115.8 million for six months compared with $86.4 million and $184.1 million last year. Results were lower for both periods largely due to a higher provision for credit losses, lower commissions from crop insurance and narrower financing spreads. Benefits from investment tax credits related to wind energy projects partially offset these factors.

Company Outlook & Summary

The outlook for market conditions over the remainder of the year remains highly uncertain and the impact on the company’s sales and earnings is difficult to assess.

Company equipment sales are projected to be down about 19 percent for the full year and down about 26 percent for the third quarter, including a negative currency-

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translation impact of about 5 percent for the year and about 6 percent for the quarter. Deere’s net income is expected to be about $1.1 billion for 2009, with more risk on the downside.

“Although financial results are forecast to be lower in 2009, Deere will continue rigorously managing its business with an objective of driving improved performance throughout the cycle,” Lane said. “In this regard, we are successfully executing longstanding plans to manage costs and assets effectively in all types of market conditions.” Recent company actions to improve results and respond to economic challenges include selective workforce reductions, aggressive factory–schedule adjustments, and a continued emphasis on process and efficiency enhancements across the enterprise. Said Lane, “John Deere employees throughout the world are working to create a cost and asset structure that helps the company produce solid financial results while at the same time serving customers through a relentless focus on innovative products and services.”

* * *

Equipment Division Performance

Agricultural. Sales decreased 4 percent for the quarter largely due to the unfavorable effects of currency translation and lower shipment volumes, partially offset by improved price realization. Division sales were up 4 percent for six months. Operating profit was $635 million for the quarter and $983 million year to date, compared with $782 million and $1.114 billion for the respective periods last year. Operating profit was lower in the quarter primarily due to lower shipment and production volumes, higher raw-material costs, unfavorable impacts of foreign exchange and higher research and development expenses, partially offset by improved price realization. Six-month operating profit was lower largely due to higher raw-material costs, unfavorable foreign-exchange effects and higher research and development expenses, partially offset by improved price realization.

Commercial & Consumer. Sales for the commercial and consumer equipment division declined 24 percent for both the quarter and the first half of the year. Operating profit was $68 million for the quarter and $10 million for six months, compared with $154 million and $162 million a year ago. The operating-profit decline in both periods primarily

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was due to lower shipment and production volumes, the unfavorable effects of foreign exchange and higher raw-material costs, partially offset by improved price realization and lower selling, administrative and general expenses.

Construction & Forestry. Construction and forestry sales were down 55 percent for the quarter and 44 percent for six months. The division had an operating loss of $75 million in the quarter and $58 million year to date, compared with an operating profit of $166 million and $283 million last year. The profit decrease for both periods was primarily due to significantly lower shipment and production volumes and higher raw-material costs, partially offset by improved price realization and lower selling, administrative and general expenses.

Market Conditions & Outlook

As previously cited, the outlook for the remainder of the year remains highly uncertain considering present global economic conditions.

Agriculture & Turf. Full-year sales of the company’s agriculture and turf division are forecast to decrease by about 14 percent, including a negative currency-translation impact of about 6 percent. The division was created earlier this month by combining the operations of the worldwide agricultural equipment and commercial and consumer equipment divisions. Voluntary employee separations related to the new organizational structure are currently expected to result in pretax charges of approximately $50 million in the second half of 2009. Savings from the separation program of about the same amount are expected to be realized in 2010.

On an industry basis, farm-machinery sales in the United States and Canada are forecast to be flat to down slightly for the year, with support from an increase in four-wheel-drive tractors, combines, sprayers and seeding equipment. In other parts of the world, industry farm-machinery sales in Western Europe are forecast to be down 10 to 15 percent for the year. Markets have continued to deteriorate in Central Europe and the CIS (Commonwealth of Independent States) countries, where sales are expected to be sharply lower. In South America, industry sales are projected to decrease by 20 to 30 percent for the year. North American industry sales of turf equipment and compact utility tractors are expected to be down about 20 percent.

Construction & Forestry. Deere’s worldwide sales of construction and forestry equipment are forecast to decline by about 42 percent for the year, largely as a consequence of a slumping global economy and historically low levels of construction activity in the United States.

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Credit. Full-year 2009 net income for Deere’s credit operations is forecast to be approximately $250 million. The forecast decrease from 2008 primarily is due to narrower financing spreads, a higher provision for credit losses and lower commissions from crop insurance, partially offset by benefits from investment tax credits related to wind energy projects.

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 $33.9 million for the second quarter and $69.0 million year to date, compared with net income of $77.3 million and $154.5 million for the respective periods last year. Results were lower for both periods primarily due to a higher provision for credit losses, lower commissions from crop insurance and narrower financing spreads.

Net receivables and leases financed by JDCC were $19.292 billion at April 30, 2009, compared with $19.296 billion last year. Net receivables and leases administered, which include receivables administered but not owned, totaled $19.455 billion at April 30, 2009, compared with $19.452 billion a 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 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

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(including ethanol and biodiesel 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. and Brazil), 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 turf and utility equipment include general economic conditions, consumer confidence, weather conditions, customer profitability, 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 and forestry 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.

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; foreign currency exchange rates, especially fluctuations in the value of the U.S. dollar, interest rates and inflation and deflation rates; capital market disruptions; significant changes in capital market liquidity, access to capital and associated funding costs; delays or disruptions in the Company’s supply chain due to weather, natural disasters or financial hardship or the loss of liquidity by suppliers (including common suppliers with the automotive industry); changes in and the impact of governmental banking, monetary and fiscal policies and governmental programs in particular jurisdictions or for the benefit of certain sectors; actions by rating agencies; customer access to capital for purchases of the Company’s products and borrowing and repayment practices, the number and size of customer loan delinquencies and defaults, and the sub-prime credit market crises;

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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; 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; the availability and cost of freight; trade, monetary and fiscal policies of various countries (including protectionist policies that disrupt international commerce); 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 by environmental, health and safety regulatory agencies, including those related to engine emissions (in particular Tier 4 emission requirements), noise and the risk of climate change; 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 H1N1 and other influenzas, 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, the implementation of organizational changes such as combining of the agricultural and commercial and consumer equipment divisions, 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 significant changes in market liquidity conditions could impact access to funding and associated funding costs, which could reduce the Company’s earnings and cash flows.  The Company’s investment management

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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.  Furthermore, governmental programs providing assistance to certain industries or sectors could negatively impact the Company’s competitive position.

The current economic downturn and market volatility have adversely affected the financial industry in which John Deere Capital Corporation and other credit subsidiaries (Credit) operate.  Credit’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 or access to governmental liquidity programs decreases, 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 Credit’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.

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Second Quarter 2009 Press Release

(millions of dollars)

Unaudited

	Three Months Ended April 30							Six Months Ended April 30
	2009			2008			% Change	2009			2008			% Change
Net sales and revenues:
Agricultural equipment net sales	$	4,498		$	4,700		-4	$	7,759		$	7,458		+4
Commercial and consumer equipment net sales	1,089			1,424			-24	1,647			2,166			-24
Construction and forestry net sales	600			1,345			-55	1,341			2,375			-44
Total net sales *	6,187			7,469			-17	10,747			11,999			-10
Credit revenues	458			533			-14	931			1,083			-14
Other revenues	103			95			+8	216			216
Total net sales and revenues *	$	6,748		$	8,097		-17	$	11,894		$	13,298		-11
Operating profit (loss): **
Agricultural equipment	$	635		$	782		-19	$	983		$	1,114		-12
Commercial and consumer equipment	68			154			-56	10			162			-94
Construction and forestry	(75		)	166				(58		)	283
Credit	58			133			-56	111			265			-58
Other				3				4			7			-43
Total operating profit *	686			1,238			-45	1,050			1,831			-43
Interest, corporate expenses and income taxes	(214		)	(475		)	-55	(374		)	(698		)	-46
Net income	$	472		$	763		-38	$	676		$	1,133		-40

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

Net sales	$	2,155	$	3,062	-30	$	3,972	$	4,870	-18
Operating profit	$	88	$	383	-77	$	166	$	593	-72

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 (loss) 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.

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DEERE & COMPANY

STATEMENT OF CONSOLIDATED INCOME

For the Three Months Ended April 30, 2009 and 2008

(In millions of dollars and shares except per share amounts) Unaudited

	2009			2008
Net Sales and Revenues
Net sales	$	6,187.0		$	7,468.9
Finance and interest income	442.1			509.3
Other income	118.7			118.5
Total	6,747.8			8,096.7
Costs and Expenses
Cost of sales	4,756.4			5,508.6
Research and development expenses	255.7			230.2
Selling, administrative and general expenses	688.0			766.6
Interest expense	269.4			283.6
Other operating expenses	166.3			145.1
Total	6,135.8			6,934.1
Income of Consolidated Group before Income Taxes	612.0			1,162.6
Provision for income taxes	137.1			411.1
Income of Consolidated Group	474.9			751.5
Equity in income (loss) of unconsolidated affiliates	(2.6		)	12.0
Net Income	$	472.3		$	763.5
Per Share Data
Net income - basic	$	1.12		$	1.76
Net income - diluted	$	1.11		$	1.74
Average Shares Outstanding
Basic	422.7			433.7
Diluted	423.7			439.6

See Condensed Notes to Interim Financial Statements.

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DEERE & COMPANY

STATEMENT OF CONSOLIDATED INCOME

For the Six Months Ended April 30, 2009 and 2008

(In millions of dollars and shares except per share amounts) Unaudited

	2009		2008
Net Sales and Revenues
Net sales	$	10,747.1	$	11,999.5
Finance and interest income	908.7		1,037.2
Other income	238.0		261.1
Total	11,893.8		13,297.8
Costs and Expenses
Cost of sales	8,298.9		8,870.4
Research and development expenses	475.1		434.5
Selling, administrative and general expenses	1,327.0		1,419.3
Interest expense	543.9		578.7
Other operating expenses	363.2		300.8
Total	11,008.1		11,603.7
Income of Consolidated Group before Income Taxes	885.7		1,694.1
Provision for income taxes	210.7		581.1
Income of Consolidated Group	675.0		1,113.0
Equity in income of unconsolidated affiliates	1.2		19.5
Net Income	$	676.2	$	1,132.5
Per Share Data
Net income - basic	$	1.60	$	2.60
Net income - diluted	$	1.60	$	2.56
Average Shares Outstanding
Basic	422.6		435.6
Diluted	423.7		441.9

See Condensed Notes to Interim Financial Statements.

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DEERE & COMPANY

CONDENSED CONSOLIDATED BALANCE SHEET

(In millions of dollars) Unaudited

	April 30		October 31		April 30
	2009		2008		2008
Assets
Cash and cash equivalents	$	4,797.2	$	2,211.4	$	2,287.8
Marketable securities	185.8		977.4		981.8
Receivables from unconsolidated affiliates	48.0		44.7		38.4
Trade accounts and notes receivable - net	4,373.1		3,234.6		4,629.4
Financing receivables - net	13,511.4		16,017.0		15,236.4
Restricted financing receivables - net	3,167.4		1,644.8		2,201.6
Other receivables	635.6		664.9		666.1
Equipment on operating leases - net	1,553.2		1,638.6		1,627.2
Inventories	3,551.0		3,041.8		3,570.8
Property and equipment - net	4,254.8		4,127.7		3,784.0
Investments in unconsolidated affiliates	207.6		224.4		167.4
Goodwill	1,256.7		1,224.6		1,277.5
Other intangible assets - net	145.2		161.4		127.8
Retirement benefits	1,150.4		1,106.0		2,011.6
Deferred income taxes	1,571.9		1,440.6		1,533.2
Other assets	1,391.5		974.7		830.9
Total Assets	$	41,800.8	$	38,734.6	$	40,971.9
Liabilities and Stockholders’ Equity
Short-term borrowings	$	8,929.7	$	8,520.5	$	10,417.3
Payables to unconsolidated affiliates	101.2		169.2		207.1
Accounts payable and accrued expenses	5,589.7		6,393.6		6,533.7
Deferred income taxes	173.5		171.8		192.3
Long-term borrowings	16,850.2		13,898.5		12,752.0
Retirement benefits and other liabilities	3,288.3		3,048.3		3,519.9
Total liabilities	34,932.6		32,201.9		33,622.3
Stockholders’ equity	6,868.2		6,532.7		7,349.6
Total Liabilities and Stockholders’ Equity	$	41,800.8	$	38,734.6	$	40,971.9

See Condensed Notes to Interim Financial Statements.

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DEERE & COMPANY

STATEMENT OF CONSOLIDATED CASH FLOWS

For the Six Months Ended April 30, 2009 and 2008

(In millions of dollars) Unaudited

	2009			2008
Cash Flows from Operating Activities
Net income	$	676.2		$	1,132.5
Adjustments to reconcile net income to net cash used for operating activities:
Provision for doubtful receivables	96.1			40.8
Provision for depreciation and amortization	430.7			408.1
Share-based compensation expense	56.3			54.1
Undistributed earnings of unconsolidated affiliates	(1.7		)	(16.9		)
Credit for deferred income taxes	(73.3		)	(100.6		)
Changes in assets and liabilities:
Trade, notes and financing receivables related to sales	(1,124.6		)	(1,269.8		)
Inventories	(626.5		)	(1,317.8		)
Accounts payable and accrued expenses	(614.4		)	356.6
Accrued income taxes payable/receivable	(28.0		)	318.5
Retirement benefits	38.3			(149.0		)
Other	(10.0		)	20.9
Net cash used for operating activities	(1,180.9		)	(522.6		)
Cash Flows from Investing Activities
Collections of receivables	6,256.6			6,343.8
Proceeds from sales of financing receivables	7.9			31.1
Proceeds from maturities and sales of marketable securities	810.4			1,099.4
Proceeds from sales of equipment on operating leases	226.5			239.4
Proceeds from sales of businesses, net of cash sold				40.1
Cost of financing receivables acquired	(5,443.4		)	(6,189.9		)
Purchases of marketable securities	(12.3		)	(489.8		)
Purchases of property and equipment	(449.1		)	(429.1		)
Cost of equipment on operating leases acquired	(167.3		)	(191.6		)
Acquisitions of businesses, net of cash acquired	(44.3		)	(35.3		)
Other	(40.7		)	(30.2		)
Net cash provided by investing activities	1,144.3			387.9
Cash Flows from Financing Activities
Increase in short-term borrowings	804.3			130.4
Proceeds from long-term borrowings	4,211.6			2,848.0
Payments of long-term borrowings	(1,944.7		)	(1,826.5		)
Proceeds from issuance of common stock	4.1			100.2
Repurchases of common stock	(3.2		)	(1,001.5		)
Dividends paid	(354.5		)	(219.8		)
Excess tax benefits from share-based compensation	.7			54.0
Other	(113.6		)	(9.6		)
Net cash provided by financing activities	2,604.7			75.2
Effect of Exchange Rate Changes on Cash and Cash Equivalents	17.7			68.7
Net Increase in Cash and Cash Equivalents	2,585.8			9.2
Cash and Cash Equivalents at Beginning of Period	2,211.4			2,278.6
Cash and Cash Equivalents at End of Period	$	4,797.2		$	2,287.8

See Condensed Notes to Interim Financial Statements.

17

Notes to Interim Financial Statements (Unaudited)

(1)Dividends declared and paid on a per share basis were as follows:

	Three Months Ended April 30					Six Months Ended April 30
	2009			2008		2009			2008
Dividends declared	$	.28		$	.25	$	.56		$	.50
Dividends paid	$	.56	*	$	.25	$	.84	*	$	.50

*Due to the dividend payment dates, two quarterly dividends of $.28 per share were included in the second quarter of 2009 and three quarterly dividends of $.28 per share were included in the first six months of 2009.

(2)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.

(3)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 April 30						Six Months Ended April 30
	2009			2008			2009			2008
Net income	$	472.3		$	763.5		$	676.2		$	1,132.5
Other comprehensive income (loss), net of tax:
Retirement benefits adjustment	(115.8		)	20.1			(105.3		)	50.6
Cumulative translation adjustment	55.7			82.7			(37.4		)	82.0
Unrealized gain (loss) on investments	.3			(4.5		)	5.9			(1.3		)
Unrealized gain (loss) on derivatives	8.2			16.2			(24.2		)	(17.3		)
Comprehensive income	$	420.7		$	878.0		$	515.2		$	1,246.5

(4)The consolidated financial statements represent the consolidation of all Deere & Company’s subsidiaries.  In the supplemental consolidating data in Note 5 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 5 include primarily Deere & Company’s credit operations.

18

(5) SUPPLEMENTAL CONSOLIDATING DATA
STATEMENT OF INCOME

For the Three Months Ended April 30, 2009 and 2008

(In millions of dollars) Unaudited

	EQUIPMENT OPERATIONS*					FINANCIAL SERVICES
	2009			2008		2009			2008
Net Sales and Revenues
Net sales	$	6,187.0		$	7,468.9
Finance and interest income	15.1			25.2		$	505.9		$	559.3
Other income	84.5			77.6		49.2			63.9
Total	6,286.6			7,571.7		555.1			623.2
Costs and Expenses
Cost of sales	4,756.7			5,508.9
Research and development expenses	255.7			230.2
Selling, administrative and general expenses	565.7			660.4		125.2			108.4
Interest expense	41.8			49.1		236.5			247.5
Interest compensation to Financial Services	69.9			62.2
Other operating expenses	43.2			34.2		135.0			131.4
Total	5,733.0			6,545.0		496.7			487.3
Income of Consolidated Group before Income Taxes	553.6			1,026.7		58.4			135.9
Provision (credit) for income taxes	147.5			361.2		(10.4		)	49.9
Income of Consolidated Group	406.1			665.5		68.8			86.0
Equity in Income (Loss) of Unconsolidated Subsidiaries and Affiliates
Credit	68.3			84.2		.1			.4
Other	(2.1		)	13.8
Total	66.2			98.0		.1			.4
Net Income	$	472.3		$	763.5	$	68.9		$	86.4

*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.

19

SUPPLEMENTAL CONSOLIDATING DATA (Continued)
STATEMENT OF INCOME
For the Six Months Ended April 30, 2009 and 2008

(In millions of dollars) Unaudited

	EQUIPMENT OPERATIONS*				FINANCIAL SERVICES
	2009		2008		2009			2008
Net Sales and Revenues
Net sales	$	10,747.1	$	11,999.5
Finance and interest income	39.7		51.2		$	1,011.7		$	1,127.3
Other income	174.4		181.2		109.9			128.9
Total	10,961.2		12,231.9		1,121.6			1,256.2
Costs and Expenses
Cost of sales	8,299.6		8,871.1
Research and development expenses	475.1		434.5
Selling, administrative and general expenses	1,087.8		1,210.4		244.3			213.1
Interest expense	87.3		95.1		481.3			509.2
Interest compensation to Financial Services	118.0		115.8
Other operating expenses	122.6		82.1		281.1			262.8
Total	10,190.4		10,809.0		1,006.7			985.1
Income of Consolidated Group before Income Taxes	770.8		1,422.9		114.9			271.1
Provision (credit) for income taxes	211.3		493.4		(.6		)	87.6
Income of Consolidated Group	559.5		929.5		115.5			183.5
Equity in Income of Unconsolidated Subsidiaries and Affiliates
Credit	112.8		179.9		.3			.6
Other	3.9		23.1
Total	116.7		203.0		.3			.6
Net Income	$	676.2	$	1,132.5	$	115.8		$	184.1

* 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.

20

SUPPLEMENTAL CONSOLIDATING DATA (Continued)

CONDENSED BALANCE SHEET

(In millions of dollars) Unaudited

	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	April 30 2009		October 31 2008		April 30 2008		April 30 2009		October 31 2008		April 30 2008
Assets
Cash and cash equivalents	$	2,538.7	$	1,034.6	$	2,033.2	$	2,258.5	$	1,176.8	$	254.6
Marketable securities	3.6		799.2		812.8		182.2		178.3		168.9
Receivables from unconsolidated    subsidiaries and affiliates	521.3		976.2		298.3						.1
Trade accounts and notes receivable - net	970.8		1,013.8		1,581.4		4,065.7		2,664.6		3,619.0
Financing receivables - net	3.7		10.4		6.7		13,507.7		16,006.6		15,229.7
Restricted financing receivables - net							3,167.4		1,644.8		2,201.6
Other receivables	563.7		599.3		600.4		75.0		67.7		68.8
Equipment on operating leases - net							1,553.2		1,638.6		1,627.2
Inventories	3,551.0		3,041.8		3,570.8
Property and equipment - net	3,127.9		2,991.1		2,797.4		1,126.9		1,136.6		986.6
Investments in unconsolidated subsidiaries and affiliates	2,892.7		2,811.4		2,376.8		5.8		5.5		6.3
Goodwill	1,256.7		1,224.6		1,277.5
Other intangible assets - net	145.2		161.4		127.8
Retirement benefits	1,147.2		1,101.6		2,005.1		4.4		5.4		7.5
Deferred income taxes	1,642.8		1,479.4		1,535.6		76.6		80.2		67.1
Other assets	468.2		456.7		408.8		924.9		519.6		424.9
Total Assets	$	18,833.5	$	17,701.5	$	19,432.6	$	26,948.3	$	25,124.7	$	24,662.3
Liabilities and Stockholders’ Equity
Short-term borrowings	$	1,492.9	$	217.9	$	251.6	$	7,436.8	$	8,302.7	$	10,165.7
Payables to unconsolidated subsidiaries and affiliates	101.2		169.2		207.0		473.3		931.5		259.8
Accounts payable and accrued expenses	5,045.6		5,675.8		6,035.6		1,212.3		1,165.2		1,075.0
Deferred income taxes	103.6		99.8		111.6		217.4		191.0		150.2
Long-term borrowings	1,969.6		1,991.5		1,991.8		14,880.5		11,906.9		10,760.2
Retirement benefits and other liabilities	3,252.4		3,014.6		3,485.4		37.1		34.8		35.7
Total liabilities	11,965.3		11,168.8		12,083.0		24,257.4		22,532.1		22,446.6
Stockholders’ equity	6,868.2		6,532.7		7,349.6		2,690.9		2,592.6		2,215.7
Total Liabilities and Stockholders’ Equity	$	18,833.5	$	17,701.5	$	19,432.6	$	26,948.3	$	25,124.7	$	24,662.3

* 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)

STATEMENT OF CASH FLOWS

For the Six Months Ended April 30, 2009 and 2008

(In millions of dollars) Unaudited

	EQUIPMENT OPERATIONS*						FINANCIAL SERVICES
	2009			2008			2009			2008
Cash Flows from Operating Activities
Net income	$	676.2		$	1,132.5		$	115.8		$	184.1
Adjustments to reconcile net income to net cash provided by (used for) operating activities:
Provision for doubtful receivables	14.9			4.3			81.2			36.5
Provision for depreciation and amortization	260.7			242.2			197.1			200.8
Undistributed (earnings) loss of unconsolidated subsidiaries and affiliates	(117.1		)	305.6			(.3		)	(.6		)
Provision (credit) for deferred income taxes	(112.4		)	(107.1		)	39.1			6.6
Changes in assets and liabilities:
Receivables	23.1			(563.8		)	(12.9		)	(3.7		)
Inventories	(522.6		)	(1,195.4		)
Accounts payable and accrued expenses	(424.5		)	454.9			29.9			24.6
Accrued income taxes payable/receivable	4.2			316.8			(32.2		)	1.7
Retirement benefits	35.1			(153.2		)	3.4			4.3
Other	39.5			70.1			15.9			11.4
Net cash provided by (used for) operating activities	(122.9		)	506.9			437.0			465.7
Cash Flows from Investing Activities
Collections of receivables							16,185.9			16,091.7
Proceeds from sales of financing receivables							18.0			52.3
Proceeds from maturities and sales of marketable securities	799.8			1,079.7			10.6			19.7
Proceeds from sales of equipment on operating leases							226.5			239.4
Proceeds from sales of businesses, net of cash sold				40.1
Cost of receivables acquired							(16,737.2		)	(16,741.3		)
Purchases of marketable securities	(7.6		)	(456.8		)	(4.8		)	(32.9		)
Purchases of property and equipment	(410.7		)	(270.1		)	(38.4		)	(159.0		)
Cost of equipment on operating leases acquired							(307.7		)	(357.1		)
Acquisitions of businesses, net of cash acquired	(44.3		)	(35.3		)
Other	(8.4		)	(120.5		)	(32.4		)	(16.3		)
Net cash provided by (used for) investing activities	328.8			237.1			(679.5		)	(903.5		)
Cash Flows from Financing Activities
Increase (decrease) in short-term borrowings	1,213.2			117.9			(408.8		)	12.4
Change in intercompany receivables/payables	465.0			161.5			(465.0		)	(161.5		)
Proceeds from long-term borrowings							4,211.6			2,848.0
Payments of long-term borrowings	(20.5		)	(4.0		)	(1,924.2		)	(1,822.5		)
Proceeds from issuance of common stock	4.1			100.2
Repurchases of common stock	(3.2		)	(1,001.5		)
Dividends paid	(354.5		)	(219.8		)				(506.1		)
Excess tax benefits from share-based compensation	.7			54.0
Other	(7.0		)	3.3			(106.7		)	52.3
Net cash provided by (used for) financing activities	1,297.8			(788.4		)	1,306.9			422.6
Effect of Exchange Rate Changes on Cash and Cash Equivalents	.4			58.0			17.3			10.7
Net Increase (Decrease) in Cash and Cash Equivalents	1,504.1			13.6			1,081.7			(4.5		)
Cash and Cash Equivalents at Beginning of Period	1,034.6			2,019.6			1,176.8			259.1
Cash and Cash Equivalents at End of Period	$	2,538.7		$	2,033.2		$	2,258.5		$	254.6

* 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.

22

EX-99.2

Exhibit 99.2

(Furnished herewith)

Deere & Company

Other Financial Information

For the Six Months Ended April 30,	Equipment Operations						Agricultural Equipment						Commercial and Consumer Equipment						Construction and Forestry
Dollars in millions	2009			2008			2009			2008			2009			2008			2009			2008
Net Sales	$	10,747		$	11,999		$	7,759		$	7,458		$	1,647		$	2,166		$	1,341		$	2,375
Average Identifiable Assets
With Inventories at LIFO	$	9,954		$	9,410		$	5,875		$	5,082		$	1,774		$	1,894		$	2,305		$	2,434
With Inventories at Standard Cost	$	11,221		$	10,574		$	6,768		$	5,885		$	1,947		$	2,070		$	2,506		$	2,619
Operating Profit	$	935		$	1,559		$	983		$	1,114		$	10		$	162		$	(58	)	$	283
Percent of Net Sales	8.7		%	13.0		%	12.7		%	14.9		%	.6		%	7.5		%	(4.3		)%	11.9		%
Operating Return on Assets
With Inventories at LIFO	9.4		%	16.6		%	16.7		%	21.9		%	.6		%	8.6		%	(2.5		)%	11.6		%
With Inventories at Standard Cost	8.3		%	14.7		%	14.5		%	18.9		%	.5		%	7.8		%	(2.3		)%	10.8		%
SVA Cost of Assets	$	(666	)	$	(628	)	$	(406	)	$	(353	)	$	(110	)	$	(118	)	$	(150	)	$	(157	)
SVA	$	269		$	931		$	577		$	761		$	(100	)	$	44		$	(208	)	$	126
For the Six Months Ended April 30,																			Financial Services
Dollars in millions																			2009			2008
Net Income																			$	116		$	184
Average Equity																			$	2,614		$	2,373
Return on Equity																			4.4		%	7.8		%
Operating Profit																			$	115		$	272
Change in Allowance for Doubtful Receivables																			$	13		$	7
SVA Income																			$	128		$	279
Average Equity																			$	2,614		$	2,373
Average Allowance for Doubtful Receivables																			$	178		$	180
SVA Average Equity																			$	2,792		$	2,553
Cost of Equity																			$	(189	)	$	(219	)
SVA																			$	(61	)	$	60
The Company evaluates its business results on the basis of accounting principles generally accepted in the United States. 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 generally 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.

23

EX-99.3

Exhibit 99.3

(Furnished herewith)

Second Quarter 2009 Earnings Conference Call 20 May 2009 Exhibit 99.3 (Furnished herewith) 24

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 accounting principles generally accepted in the United States of America (GAAP). 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. 25

A Great Global Business with Sustainable SVA Growth Act on global market opportunities Leverage global scale Optimize global product line results Standardize processes Share resources Reduce costs 26 AG DIVISION C&CE DIVISION AG & TURF DIVISION AG DIVISION

Second Quarter Overview -38% $763 $472 Net Income -36% $1.74 $1.11 Diluted EPS -17% $7,469 $6,187 Net Sales -17% $8,097 $6,748 Net Sales and Revenues Change Q2 2008 Q2 2009 (in millions of dollars except per share amounts) 27

Second Quarter Overview Net Sales Equipment operations net sales: Down ~ 17% in Q2 2009 vs. Q2 2008 Currency translation: ~ (6) points Price realization: ~ +6 points 28

*Percentage change from same period in previous year, excluding purchased product. **Worldwide Agriculture and Turf Division, effective May 1, 2009. Production Tonnage* (3) (1) +3 U.S. and Canada AG (18) Worldwide A&T ** (9) (28) Q3 2009 Forecast (23) (44) (62) Worldwide C&F (14) US. and Canada A&T ** (17) (28) (20) Outside U.S. and Canada (10) (19) (18) Total U.S. and Canada (21) (36) Worldwide C&CE (8) (6) Worldwide AG (12) (22) (17) (19) Total Worldwide FY 2009 Previous Forecast FY 2009 Forecast Q2 2009 Previous Forecast Q2 2009 Actual % Change Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 29

2009 Company Outlook Third Quarter 2009 Forecast Net sales down ~ 26% vs. Q3 2008 Currency translation: ~ (6) points Price realization: ~ +5 points Fiscal Year 2009 Forecast Net sales down ~ 19% vs. FY 2008 Currency translation: ~ (5) points Price realization: ~ +6 points Previous forecast down ~8% vs. FY 2008 Currency translation: ~ (6) points Price realization: ~ +6 points Net income of ~ $1.1 billion, with more risk on the downside Previous forecast of ~ $1.5 billion Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 30

Worldwide Agricultural Equipment Second Quarter Overview -19% $782 $635 Operating Profit* -6% Production Tonnage -4% $4,700 $4,498 Net Sales Change Q2 2008 Q2 2009 (in millions of dollars) *Operating profit impacted by: Lower shipment and production volumes Higher raw-material costs Unfavorable impacts of foreign exchange Higher research and development expenses Improved price realization Decremental Margin ~ 73% 31

World Farm Fundamentals Global Stocks-To-Use Ratios Source: USDA - 12 May 2009 Corn Wheat Cotton Soybeans Lowest level since 1972/1973 Lowest level in USDA 36-year history 32

$0.54 $9.60 $5.25 $3.80 2009/10 Forecast $0.50 $10.00 $6.80 $4.20 2008/09 Forecast $0.57 $8.00 $5.35 $3.35 Previous 2009/10 $0.55 $9.35 $6.85 $4.00 Previous 2008/09 $0.59 $10.10 $7.35 $4.20 2007/08 Cotton (per pound) Soybeans (per bushel) Wheat (per bushel) Corn (per bushel) U.S. Commodity Price Estimates Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 33

Deere & Company Forecast as of 20 May 2009 U.S. Farm Prices Source: Actual data from Wall Street Journal (dollars per bushel) $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 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-09 Apr-09 Jul-09F Oct-09F Jan-10F Apr-10F Jul-10F Oct-10F Wheat Corn Soybeans 34

U.S. Farm Cash Receipts 313.1 13.5 137.3 162.3 Previous 2009 315.9 10.2 134.5 171.2 2010 Forecast 303.3 12.1 123.1 168.1 2009 Forecast 332.1 13.2 138.2 180.7 Previous 2008 334.0 12.4 137.8 183.8 2008 Estimate 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 20 May 2009 (Previous Forecast as of 18 February 2009) 35

U.S. Net Farm Cash Income (249.0) (246.7) (260.9) (226.0) Cash Expenses 85.7 334.7 18.8 315.9 2010 Forecast 74.6 321.3 18.0 303.3 2009 Forecast 90.8 351.7 17.7 334.0 2008 Estimate 87.4 313.4 16.6 296.8 2007 Net Cash Income Gross Cash Income Other Cash Income Total Cash Receipts (in billions of dollars) Deere & Company Forecast as of 20 May 2009 36

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 Future of Argentina’s farming sector will depend more on political decisions than on economic conditions Deere & Company Forecast as of 20 May 2009 1.5 0.3 2.4 4.0 0.6 14.3 2010 Forecast 2009 Forecast 2008 2010 Forecast 2009 Forecast 2008 Argentina Brazil (in billions of U.S. dollars) 37

Worldwide Agricultural Equipment Order Cancellations in Second Quarter U.S. and Canada: Very few cancellations Western Europe: Very few cancellations South America: Cancellations in Q2 2009 somewhat higher than typical Central Europe and the CIS* countries: Following high cancellations in Q1, cancellations in Q2 have moderated * Commonwealth of Independent States 38

Worldwide Commercial & Consumer Equipment Second Quarter Overview -56% $154 $68 Operating Profit* -36% Production Tonnage -24% $1,424 $1,089 Net Sales Change Q2 2008 Q2 2009 (in millions of dollars) *Operating profit impacted by: Lower shipment and production volumes Unfavorable effects of foreign exchange Higher raw-material costs Improved price realization Lower SA&G expenses Decremental Margin ~ 26% 39

Worldwide Agriculture & Turf Division Deere & Company Outlook Fiscal Year 2009 Forecast Net sales projected to be down ~ 14% Currency translation: ~ (6) points Previous forecast: Worldwide Agricultural Equipment down ~ 2% Currency translation: ~ (7) points Worldwide Commercial and Consumer Equipment down ~ 14% Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 40

Agriculture & Turf Equipment Retail Sales Industry Outlook – Fiscal 2009 U.S. and Canada Ag: Flat to down slightly Previous forecast flat to up ~ 5% Western Europe Ag: Down 10% - 15% No change from previous forecast Central Europe and the CIS* countries Ag: Markets have continued to deteriorate, sales expected to be sharply lower Previous forecast down significantly Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) * Commonwealth of Independent States 41

Agriculture & Turf Equipment Retail Sales Industry Outlook – Fiscal 2009 South America Ag: Down 20% - 30% Previous forecast down 15% - 25% North American turf equipment and compact utility tractors: Down ~ 20% Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 42

Worldwide Construction & Forestry Second Quarter Overview $166 ($75) Operating Profit/(Loss)* -62% Production Tonnage -55% $1,345 $600 Net Sales Change Q2 2008 Q2 2009 (in millions of dollars) *Operating loss impacted by: Significantly lower shipment and production volumes Higher raw-material costs Improved price realization Lower SA&G expenses Decremental Margin ~ 32% 43

Worldwide Construction & Forestry Deere & Company Outlook Fiscal Year 2009 Forecast Net sales projected to be down ~ 42% Previous forecast down ~ 24% Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) -6.9% -22.5% 551 -3.5% 2009 Forecast -12.8% Non-Residential Spending (annual percentage rate) 848 Housing Starts (thousands) +3.1% +1.4% 2010 Forecast Government Spending (annual percentage rate) GDP Growth (annual percentage rate) U.S. Economic Indicators* *Source: Global Insight – April 2009 44

U.S. Economic Indicators *Source: Global Insight – April 2009 45 Non-Residential Spending $0 $50 $100 $150 $200 $250 $300 $350 $400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (billions of real dollars) Housing Starts 0 500 1,000 1,500 2,000 2,500 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (thousands) GDP Growth -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (annual percentage rate) Government Spending $0 $50 $100 $150 $200 $250 $300 $350 $400 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 (billions of real dollars)

Credit Credit Loss History Low losses driven by: Strong farmer cash flows Rigorous underwriting standards Historically strong used Ag equipment values * Year-to-date April 2009 annualized Ag and C&CE dealer reserves Robust collection practices 0.75% 46 Provision for Credit Losses / Average Owned Portfolio 0.00% 0.50% 1.00% 1.50% 2.00% 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

Credit Owned Portfolio Write-offs Annualized 0.67% 2.94% 1.93% 0.07% Q2 2009 0.52% 1.22% 0.76% 0.17% 10-Year Annual Average 1.19% 2.95% 1.08% 0.48% 10-Year Annual Peak 0.35% Total Owned Write-offs C&F – Retail C&CE – Retail AG – Retail 1.25% 1.20% 0.03% Q2 2008 47

Liquidity Management Note: As of 30 April 2009, Enterprise incremental capacity to issue commercial paper was $2.4 billion $3.5 $2.0 $1.1 $0.8 $1.9 $3.0 $0.4 $0.8 $0.2 $0.4 $0.2 $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 John Deere Credit Worldwide Maturities JDCC* & JDCI** Funding (billions of dollars) Medium-Term Notes ABS TLGP MTN €MTN Ag Retail Note Conduit Medium-Term Notes ABS CAD MTN MTN Retail Notes Q2 ’09 Funding Q1 ’09 Funding FY ‘10 Maturities FY ‘09 Maturities Ag Retail Note Conduit * John Deere Capital Corporation (United States) ** John Deere Credit Inc. (Canada) 48

Credit Second Quarter 2009 Net income of ~ $68 million vs. ~ $84 million in Q2 2008 Higher provision for credit losses Lower commissions from crop insurance Narrower financing spreads Benefits from investment tax credits related to wind energy projects Fiscal Year 2009 Forecast Net income of ~ $250 million No change from previous forecast Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 49

Consolidated Trade Receivables & Inventory 375 A&T 700 700 325 2009** Forecast 250 250 175 150 75 2009** Previous Forecast 276 Total, as reported 400 Total, constant exchange C&F C&CE AG (in millions of dollars) 545 302 571 Q2 2009* Actual * Change at 30 April 2009 vs. 30 April 2008 ** Change at 31 October 2009 vs. 31 October 2008 Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 50

Consolidated Trade Receivables & Inventory Continued strong asset management in 2009 51 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 '09 Q1 Q2 Receivables & Inventory to Previous 12 Months Sales Prior Year Current Year

 more than industry a single digit a single digit low double digits Deere** Flat 4WD Tractors 17% Combines 12% 26% Industry* Row-Crop Tractors Utility Tractors * As reported by the Association of Equipment Manufacturers ** As reported to the Association of Equipment Manufacturers April 2009 Retail Sales U.S. and Canada 52

(at 30 April – in units as a % of trailing 12 months retail sales) 2008 2009 12% 15% Combines 25% 18% Row-Crop Tractors As reported to the Association of Equipment Manufacturers Deere Dealer Inventories U.S. and Canada 53

April 2009 Retail Sales Western Europe double digits double digits Deere Combines Tractors Based on EU Government Reporting of Registrations 54

 double digits First-in-the-Dirt double digits Settlements Construction & Forestry double digits Commercial & Consumer Equipment Deere April 2009 Retail Sales U.S. and Canada 55

Material Costs and Freight Equipment Operations Second Quarter 2009 Up ~ $180 million vs. Q2 2008 Third Quarter 2009 Forecast Flat vs. Q3 2008 Fiscal Year 2009 Forecast Up ~ $300 million vs. FY2008 By division Agriculture & Turf ~ $250 million Construction & Forestry: ~ $ 50 million Previous forecast up $400 - $500 million vs. FY2008 Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 56

Research & Development Expense Equipment Operations Second Quarter 2009 Up ~ 11% vs. Q2 2008 Currency translation ~ (4) points Fiscal Year 2009 Forecast Up ~ 2% vs. FY2008 Currency translation ~ (3) points Previous forecast up ~ 3% Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 57

Selling, Administrative & General Expense Equipment Operations Second Quarter 2009 Down ~ 14% vs. Q2 2008 Global growth initiatives: ~ 3 points Variable incentive compensation ~ (8) points Currency translation ~ (5) points Fiscal Year 2009 Forecast Down ~ 10% vs. FY 2008 Global growth initiatives ~ 3 points Variable incentive compensation ~ (6) points Currency translation ~ (4) points Previous forecast down ~ 4% vs. FY 2008 Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 58

Foreign Currency Spot Rate Change vs. USD 30 April 2009 vs. 30 April 2008* *Based on daily closing rates from Reuters Second quarter pretax impact of translation and transaction (trade flow) currency movements ~ $150 million 59 -40% -30% -20% -10% 0% 10% 20% 30% Russia (RUB) New Zealand (NZD) Sweden (SEK) United Kingdom (GBP) Mexico (MXN) Brazil (BRL) Australia (AUD) Turkey (TRY) India (INR) Canada (CAD) Euro (EUR) Argentina (ARS) South Africa (ZAR) Switzerland (CHF) China (RMB) Japan (JPY)

Tax Rate Equipment Operations Second Quarter 2009 Effective tax rate of ~ 27% Discrete items Third and Fourth Quarter 2009 Forecast Effective tax rate of ~ 36% Fiscal Year 2009 Forecast Assumes tax rate of ~ 31% Previous forecast ~ 35% Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 60

Other Information Fiscal Year 2009 Forecast Equipment Operations Capital Expenditures ~ $800 million No change from previous forecast Depreciation and Amortization ~ $500 million No change from previous forecast Pension/OPEB Contributions ~ $185 million Previous forecast ~ $180 million Pretax cost related to voluntary separation program ~ $50 million Preliminary estimate, application window still open Pretax cost associated with Welland facility closure ~ $60 million Financial Services Capital Expenditures ~ $100 million, primarily Wind No change from previous forecast Deere & Company Forecast as of 20 May 2009 (Previous Forecast as of 18 February 2009) 61

Appendix 62

Credit Owned Portfolio 60+ Past Dues 0.36% 0.56% 0.61% 0.24% April 2009 0.29% 0.35% 0.40% 0.23% 5-Year Annual Average 0.36% 0.56% 0.61% 0.28% 5-Year Annual Peak 0.26% Total Owned 60+ Past Dues C&F – Retail C&CE – Retail AG – Retail 0.40% 0.48% 0.20% April 2008 63

Credit Owned Portfolio Non-Accruals 0.60% 1.23% 2.64% 0.45% April 2009 0.45% 0.53% 1.16% 0.54% 5-Year Annual Average 0.60% 1.23% 2.64% 0.59% 5-Year Annual Peak 0.41% Total Owned Non-Accruals C&F – Retail C&CE – Retail AG – Retail 0.54% 0.32% 0.58% April 2008 64

Share Repurchase as Part of Publicly Announced Plans Total $ Amount (in billions) Shares Repurchased* (in millions) FY2009 $0.0 0.0 Q1 $0.0 0.0 Total Q4 Q3 $0.0 0.0 Q2 $1.7 21.2 2008 Total $ Amount (in billions) Shares Repurchased* (in millions) Actual $0.2 5.9 2004 $5.6 114.5 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 30 April 2009 period ending shares: 422.8 million * All shares adjusted for two-for-one stock split effective 26 November 2007 65

Deere’s third quarter 2009 conference call is scheduled for 9:00 a.m. central time on Wednesday, August 19, 2009 66