The Deere & Co. board of directors today authorized the company to repurchase up to $5 billion of additional common stock. The repurchases will be made at the company’s discretion in the open market, and will supplement the existing 40 million-share authorization announced in May 2007.

The board of directors also increased the quarterly dividend rate by 12 percent, or 3 cents per share, over the previous level.

Deere also announced that it will invest approximately $35 million to increase manufacturing capacity by 30 percent at its East Moline, Ill., combine harvester factory. The project is expected to be completed in early 2009. The investment will include machine tooling and fixtures, improved work processes and improvements to the existing paint system.

Earlier this year, Deere announced that it was investing in its Waterloo plant to expand manufacturing capacity. The expansion was made due to strong worldwide demand for agricultural equipment, including the high-horsepower tractors that are made in Waterloo.