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Industry Perspective. Joanne Howard Challenges and Opportunities in Managing Agricultural Operations for a Low-Carbon Economy 18 July 2007. John Deere Today. An American icon – founded in 1837 – growing outside the United States for more than 50 years.

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industry perspective

Industry Perspective

Joanne Howard

Challenges and Opportunities in Managing Agricultural Operationsfor a Low-Carbon Economy

18 July 2007

john deere today
John Deere Today

An American icon – founded in 1837 – growing outside the United States for more than 50 years

  • #1 provider to agricultural and forestry businesses worldwide
  • #2 construction equipment provider in North America
  • Quality leader in lawn, grounds and turf care equipment
  • A leading worldwide manufacturer of off-highway diesel engines
  • One of the largest equipment finance companies in the U.S.
  • Key investor in alternative energy sources
  • Exciting new entities: John Deere Agri Services, Intelligent Mobile Equipment Technologies, Landscapes, Wind Energy


john deere today1
John Deere Today

Minneapolis, MN

Valley City, ND

Tampere, Finland

Fargo, ND

Zweibruecken, Germany

Edmonton, Alberta

Joensuu, Finland

Welland, Ontario

Bruchsal, Germany

Langley, British Columbia

Enschede, Netherlands

Klemme, IA

Rock Valley, IA

Horst, Netherlands

Waterloo, IA

Des Moines, IA

Gummersbach, Germany

Dubuque, IA

Stadtlohn, Germany

Horicon, WI

Ottumwa, IA

Davenport, IA

Mannheim, Germany

Springfield, MO

Moline, IL

Jiamusi, China

Coffeyville, KS

East Moline, IL

Greeneville, TN

Kernersville, NC

Tianjin, China

Fuquay-Varina, NC

Augusta, GA

Orenburg, Russia

Torreon, Mexico

Monterrey, Mexico

Pune, India

Thibodaux, LA

Saltillo, Mexico

Madrid, Spain

Richards Bay, South Africa

Saran, France

Catalao, Brazil

Brisbane, Australia

Arc-les-Gray, France


Horizontina, Brazil

Tokoroa, New Zealand

Rosario, Argentina


2006 net sales revenues 22 148 billion
2006 Net Sales & Revenues: $22.148 Billion

Credit 8%

Construction & Forestry 26%

Other 2%

Agricultural 46%

Commercial & Consumer 18%

Investing nearly $2 million per day in research and development


we contribute we solve
We Contribute…We Solve
  • Our Factories/Buildings
  • Direct / Indirect Emissions
  • Customers/Dealers
  • Carbon sequestration: agricultural, forestry, mowing opportunities
  • Product
  • Engine Emissions
  • Biofuel Usage
  • Research & Development
  • Renewable energy sources
  • Biomass Activities


greenhouse gas accounting protocols
Greenhouse Gas Accounting Protocols


Company A’s ton of GHG = Company B’s ton of GHG


deere s direct vs indirect emissions
Deere’s Direct vs. Indirect Emissions

Largest Direct Processes

  • Foundry
  • Heat Treat
  • Painting
  • Powerhouses
  • Testing Operations

Deere’s GHG Emissions

69% Indirect

31% Direct

Purchased Electricity & Steam


enhanced external communications
Enhanced External Communications

2006 Global Citizenship Report

External Web Page


industry perspective we contribute
Industry Perspective: We Contribute
  • Standardization
    • Uniform federal framework of climate legislation
    • Uniform guidelines for GHG inventory and registry
  • Credit for Early Action


Fuel Efficient Diesel EnginesJohn Deere Power Systems

Performance optimized Tier 3 PowerTech Plus™ engines providing industry-leading fuel economy, power, response


8430 Tractor:Set new record as most fuel-efficient row crop tractor ever tested in the Nebraska Test Lab


Use of Renewable MaterialsJohn Deere Power Systems

25 x ‘25 Renewable Fuels Champion

Promoting quality standards, handling, distribution and use of biodiesel fuels


Conservation Tillage Equipment

"The single-disc fertilizer openers provide efficient fertilizer placement with minimal soil disturbance." — Grant Troop, Quarryville, Pa.

"The pneumatic down pressure feature on my 1770NT planter easily adjusts from the tractor cab and provides more down pressure options than you will ever find that you need." — Kenneth Wisehart, Shirley, Ind.


Precision Farming EquipmentJohn Deere Ag Management Solutions

Precision Ag Solutions for Growers Worldwide

  • GreenStar AutoTrac
  • iTECPro

Multiple precision Ag applications


Nutrient Application Equipment and SolutionsJohn Deere Agri Services

Turning information into insight and strategies that add value and strengthen businesses across the agri-food supply chain

  • OptiGro
  • Soil Information Systems


financial services john deere wind energy
Financial ServicesJohn Deere Wind Energy
  • Provide advice, debt and equity investment and the foundation for a successful project through:
    • Long-term, comprehensive project management services
    • Turbine supply
    • A stream-lined project approval process and technical support
    • Expertise in agriculture, financial services and wind energy technology


wind climate benefits
Wind Climate benefits
  • A single turbine displaces 2700 tons of Carbon Dioxide annually
  • Current fleet of installed turbines in US
    • Avoid 19 million CO2 tons annually
    • Avoids burning 16 million tons of coal each year or 50 million Barrels of Oil
  • Avoids consumption of Water in fossil fuel generation
    • Avg. per person consumption for energy: 100,000 gallons of water


= Operating = In Construction = Planned (Approved)

(75.2 MW) (228.5 MW) (233.15 MW)

Project Locations

17 April 2007


one farmer s sentiments on wind energy
One Farmer’s Sentiments on Wind Energy

"I think it's one of the greatest things that ever happened.

It's good for my pocketbook. It's good for the environment.”

-- Chuck Goodman, retired farmer near Alta, Iowa; Has three wind turbines on his land


we solve summary
We Solve: Summary
  • Fuel-efficient diesel engines
  • Use of renewable materials in products
  • Corn- and soy-based plastics for some combine and tractor components
  • Conservation tillage equipment: planters, air seeders, drills
  • Precision farming equipment: GreenStar AutoTrac and iTEC Pro
  • Nutrient application equipment and solutions: OptiGro and Soil Information System
  • Wind energy service provider


industry perspective we solve
Industry Perspective: We Solve
  • Technology Policies and Measures:
    • Renewables - use / research / standards
  • Emission Offsets:
    • Ensuring robust and reliable participation by agricultural and forestry sectors in climate policies
      • Offsets should include a variety of options, e.g. soil, plant, forest sequestration, methane capture, renewable energy
      • Offsets must be verifiable
      • Development of a single, nationwide standard for verifying and accounting for agriculture and forestry offsets is needed