<PAGE>
EXHIBIT 12
DEERE & COMPANY AND CONSOLIDATED SUBSIDIARIES
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
Six Months Ended
April 30 Year Ended October 31
----------------------- --------------------------------------------------------------
2000 1999 1999 1998 1997 1996 1995
---------- ---------- ---------- ----------- ---------- ---------- ----------
(In thousand of dollars)
<S> <C> <C> <C> <C> <C> <C> <C>
Earnings:
Income of consolidated group before $ 412,998 $ 307,078 $ 365,135 $ 1,560,032 $1,507,070 $1,286,634 $1,092,751
income taxes and changes in
accounting
Dividends received from 2,809 5,734 5,734 5,555 3,591 7,937 2,023
less-than-fifty percent owned
affiliates
Fixed charges excluding capitalized 314,536 283,130 571,949 531,817 433,673 410,764 399,056
interest
---------- ---------- ---------- ----------- ---------- ---------- ----------
Total earnings $ 730,343 $ 595,942 $ 942,818 $2,097,404 $1,944,334 $1,705,335 $1,493,830
========== ========== ========== =========== ========== ========== ==========
Fixed charges:
Interest expense of consolidated $ 307,027 $ 277,775 $ 557,740 $ 521,418 $ 422,588 $ 402,168 $ 392,408
group including capitalized interest
Portion of rental charges deemed to 7,673 6,226 15,347 12,451 11,497 8,596 6,661
be interest
---------- ---------- ---------- ------------ ---------- ---------- ----------
Total fixed charges $ 314,700 $ 284,001 $ 573,087 $ 533,869 $ 434,085 $ 410,764 $ 399,069
========== ========== ========== ============ ========== ========== ==========
Ratio of earnings to fixed charges* 2.32 2.10 1.65 3.93 4.48 4.15 3.74
</TABLE>
The computation of the ratio of earnings to fixed charges is based on
applicable amounts of the Company and its consolidated subsidiaries plus
dividends received from less-than-fifty percent owned affiliates.
"Earnings" consist of income before income taxes, the cumulative effect of
changes in accounting and fixed charges excluding capitalized interest.
"Fixed charges" consist of interest on indebtedness, amortization of debt
discount and expense, an estimated amount of rental expense which is deemed
to be representative of the interest factor, and capitalized interest.
* The Company has not issued preferred stock. Therefore, the ratios of
earnings to combined fixed charges and preferred stock dividends are the
same as the ratios presented above.
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