PROSPECTUS and				PRICING SUPPLEMENT NO. 1
PROSPECTUS SUPPLEMENT, each		effective at 9:45 am ET
Dated September 3, 1996			Dated 10 September 1996
CUSIP: 24422EGW3				Commission File No.: 333-10561
						Filed pursuant to Rule 424(b)(3)

                        U.S. $1,108,850,000
                  JOHN DEERE CAPITAL CORPORATION

                     MEDIUM-TERM NOTES, SERIES C
            due from 9 Months to 30 Years from Date of Issue
                       (Floating Rate Notes)

Original Issue Date:				13 September 1996

Maturity Date:					14 September 1998

Principal Amount:					$200,000,000

Interest Rate Basis:				USD-LIBOR-Telerate

Index Maturity:					3 Month 										 	
Spread:						Minus 1 basis point (-0.01%)

Initial Interest Determination Date:	11 September 1996
			
Day Count Convention:				Actual/360

Interest Reset Dates:			      Quarterly on the fourteenth
							of December, March, June & 
							September commencing on the
                                          Date of Issue			 

Interest Determination Dates:			Two business days preceding
							such Interest Reset Dates

Interest Payment Dates:				Quarterly on the fourteenth
							of December, March, June and
                                          & September commencing 
                                          December 16, 1996

Redemption Provisions:				None

Plan of Distribution:				J. P. Morgan Securities Inc.
                                          has purchased the Senior Notes
                                          as principal at a purchase 
                                          price of 99.992%
							of the aggregate principal
							amount of the Senior Notes.

J. P. Morgan Securities Inc.

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