27673--12/17/2010--DEERE_JOHN_CAPITAL

related topics

{gas, price, oil}

{condition, economic, financial}

{regulation, government, change}

{operation, international, foreign}

{regulation, change, law}

International, regional and national trade laws, regulations and policies (particularly those related to or restricting global trade) and government farm programs and policies, could significantly impact John Deere s profitability and growth prospects. Changes in government banking, monetary and fiscal policies could have a material negative effect on John Deere. Changing worldwide demand for food and for different forms of bio-energy could have an effect on the price of farm commodities and consequently the demand for certain John Deere equipment and could also result in higher research and development costs related to changing machine fuel requirements. Negative economic conditions and outlook can materially weaken demand for John Deere s equipment and services, limit access to funding and result in higher funding costs. The Company s consolidated financial results are reported in U.S. dollars while certain assets and other reported items are denominated in the currencies of other countries, creating currency translation risk. Because the Company is a financing company, the Company s operations and financial results could be impacted materially should negative economic conditions affect the financial industry. If John Deere s customers lack confidence in the general economic outlook, they are less likely to purchase John Deere s products. John Deere s business results depend largely on its ability to develop, manufacture and market products that meet customer demand. John Deere s business may be directly and indirectly affected by unfavorable weather conditions or natural disasters that reduce agricultural production and demand for agricultural and turf equipment. The Company is subject to interest rate risks. Changes in interest rates can reduce demand for equipment, adversely affect interest margins and limit the ability to access capital markets while increasing borrowing costs.

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27673--12/17/2010--DEERE_JOHN_CAPITAL_CORP