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Deere responds to high demand, boosts combine manufacturing

The backlog of orders for combines received some welcome relief when Deere & Company announced that it is investing approximately $35 million to boost the manufacturing capacity of the John Deere Harvester Works.

The capacity of this manufacturing facility, located in East Moline, Illinois, will increase 30% after completion of this upgrade in early 2009. "This initiative will help John Deere meet the growing demand worldwide for large combines," says Markwart Von Pentz of Deere.

The total cost for the expansion, which includes new manufacturing equipment and "work processes," is around $35 million, according to a Deere report. Earlier in the year, Deere set out to similarly expand the manufacturing capacity of it high horsepower tractor plant in Waterloo, Iowa.

"With manufacturers tightly controlling production of new tractors and farm equipment and with commodity prices remaining high, most folks rightly assume we'll be looking at continued rising prices for new equipment," says Peterson, the author of the F.A.C.T's Report. "Of course the rising price and limited availability of new equipment helps drive used equipment values higher and higher. We've been on this path since mid 2004 and honestly, I don't see this cycle breaking any time soon. Hard as it is to believe, I think used equipment values will continue to rise."

The backlog of orders for combines received some welcome relief when Deere & Company announced that it is investing approximately $35 million to boost the manufacturing capacity of the John Deere Harvester Works.

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