Deere & Co. announced this morning that its net earnings in its third fiscal quarter, which ended July 31, rose 23 percent, driven by strong overseas sales of tractors and other equipment, Reuters reported.

The company also credited the strong results to its ability to pass along increased costs to farmers, who are enjoying higher prices for many of their crops thanks to excitement over ethanol and other biofuels.

“The margins were very big,” said Eli Lustgarten, an analyst at Longbow Research.

The company also raised its forecast for fiscal 2007 earnings to $1.7 billion, up from $1.55 billion, saying it expected an increase in its agricultural equipment and commercial and consumer businesses to offset a decline in sales to builders and foresters.

Deere reported earnings of $537.2 million, or $2.37 a share, up from $436.7 million, or $1.85 a share, last year.

Net revenues rose 6 percent to $6.634 billion, lifted by a 30 percent rise in sales outside the United States and Canada, where sales dipped 5 percent despite the ethanol-fueled ramp up in corn production.