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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 Joanne Howard Challenges and Opportunities in Managing Agricultural Operationsfor 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 • #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 2
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 Montenegro,Brazil Horizontina, Brazil Tokoroa, New Zealand Rosario, Argentina 3
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 4
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 5
Greenhouse Gas Accounting Protocols Consistency Company A’s ton of GHG = Company B’s ton of GHG 7
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 8
2006 CO2 Tonnage Breakdown (FY2006 Data) Manufacturing: 89% 10
Enhanced External Communications 2006 Global Citizenship Report External Web Page 11
Industry Perspective: We Contribute • Standardization • Uniform federal framework of climate legislation • Uniform guidelines for GHG inventory and registry • Credit for Early Action 14
We Solve 15
Fuel Efficient Diesel EnginesJohn Deere Power Systems Performance optimized Tier 3 PowerTech Plus™ engines providing industry-leading fuel economy, power, response 16
8430 Tractor:Set new record as most fuel-efficient row crop tractor ever tested in the Nebraska Test Lab 17
Use of Renewable MaterialsJohn Deere Power Systems 25 x ‘25 Renewable Fuels Champion Promoting quality standards, handling, distribution and use of biodiesel fuels 18
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. 20
Precision Farming EquipmentJohn Deere Ag Management Solutions Precision Ag Solutions for Growers Worldwide • GreenStar AutoTrac • iTECPro Multiple precision Ag applications 21
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 22
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 23
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 24
= Operating = In Construction = Planned (Approved) (75.2 MW) (228.5 MW) (233.15 MW) Project Locations 17 April 2007 25
JD Wind 3 26
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 27
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 28
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 29
Questions?For further information:Joanne Howard309 765 5152howardjoannem@johndeere.com 30