=================================================================

                       UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                  WASHINGTON, D.C.  20549

                        FORM 10-Q


QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE
           SECURITIES EXCHANGE ACT OF 1934

    For the quarterly period ended April 30, 1998

             Commission file no: 1-6458
             ___________________________

           JOHN DEERE CAPITAL CORPORATION

         Delaware                    36-2386361
(State of incorporation)   (IRS employer identification no.)

           1 East First Street, Suite 600
                Reno, Nevada  89501
      (Address of principal executive offices)

         Telephone Number:  (702) 786-5527
         _________________________________


    Indicate by check mark whether the registrant (1) has filed 
all reports required to be filed by Section 13 or 15(d) of the 
Securities Exchange Act of 1934 during the preceding 12 months 
(or for such shorter period that the registrant was required to 
file such reports), and (2) has been subject to such filing 
requirements for the past 90 days.
Yes  x  No  

    At April 30, 1998, 2,500 shares of common stock, without par 
value, of the registrant were outstanding, all of which were 
owned by John Deere Credit Company, a wholly-owned subsidiary of 
Deere & Company.

    The registrant meets the conditions set forth in General 
Instruction H(1)(a) and (b) of Form 10-Q and is therefore filing 
this Form with certain reduced disclosures as permitted by those 
instructions.
=================================================================

                   Index to Exhibits:  Page 13


<PAGE>

                 PART I.    FINANCIAL INFORMATION

Item 1.  Financial Statements

          John Deere Capital Corporation and Subsidiaries
      Statements of Consolidated Income and Retained Earnings
                           (Unaudited)
                          (in millions)

                                    Three Months    Six Months 
                                      Ended           Ended
                                     April 30,       April 30,
                                  ------------------------------
                                   1998    1997    1998    1997
Revenues                          ------  ------  ------  ------
  Finance income earned 
    on retail notes               $107.2  $103.4  $211.6  $195.6
  Revolving charge account 
    income                          24.6    22.6    49.9    44.6
  Lease revenues                    44.8    27.7    84.5    50.4
  Finance income earned on 
    wholesale notes                 14.4    11.9    28.3    23.7
  Net gain on retail notes sold     10.5     1.1    12.6     1.8
  Interest income from 
    short-term investments           2.4     2.4     5.0     5.0
  Securitization and servicing 
    fee income                       6.6     7.2    14.4    17.6
  Other income                       3.0     2.8     5.4     3.9
----------------------------------------------------------------
      Total revenues               213.5   179.1   411.7   342.6
----------------------------------------------------------------
Expenses        
  Interest expense                  91.1    78.6   179.4   150.1       
  Operating expenses:        
    Administrative and 
      operating expenses            28.5    26.0    55.0    48.7
    Provision for credit losses     15.2     9.7    24.5    16.2
    Fees paid to Deere & Company     2.7     2.2     5.9     4.4
    Depreciation of equipment on 
        operating leases            25.4    17.5    48.8    31.8
----------------------------------------------------------------
      Total operating expenses      71.8    55.4   134.2   101.1
----------------------------------------------------------------
      Total expenses               162.9   134.0   313.6   251.2
----------------------------------------------------------------
Income of consolidated group 
  before income taxes               50.6    45.1    98.1    91.4
Provision for income taxes          17.9    15.8    34.6    31.9
----------------------------------------------------------------
Income of consolidated group        32.7    29.3    63.5    59.5
Equity in income (loss) of 
  unconsolidated affiliates           .2     (.3)    ---     (.8)
----------------------------------------------------------------
Net income                          32.9    29.0    63.5    58.7
Cash dividends declared            (12.5)  (20.0)  (25.0)  (40.0)
Retained earnings at beginning 
  of period                        723.3   654.1   705.2   644.4
----------------------------------------------------------------
Retained earnings at end 
  of period                       $743.7  $663.1  $743.7  $663.1
================================================================

            See Notes to Interim Financial Statements.

Page 2

<PAGE>

          John Deere Capital Corporation and Subsidiaries
                   Consolidated Balance Sheets
                          (Unaudited)
                     (dollars in millions)

                                 April 30,  October 31,  April 30,
                                   1998        1997        1997
Assets                           --------    --------    --------
  Cash and cash equivalents      $  188.6    $  204.4    $  167.9
  Receivables and leases:
    Retail notes                  4,671.1     4,349.4     4,605.5
    Wholesale notes                 669.7       593.4       522.3
    Revolving charge accounts       627.0       618.5       510.9
    Financing leases                218.1       214.6       194.0
 -----------------------------------------------------------------
      Total receivables           6,185.9     5,775.9     5,832.7
    Equipment on operating 
      leases -- net                 712.2       527.2       402.6
-----------------------------------------------------------------
      Total receivables 
        and leases                6,898.1     6,303.1     6,235.3
    Allowance for credit losses     (85.7)      (85.9)      (89.2)
-----------------------------------------------------------------
      Total receivables 
        and leases -- net         6,812.4     6,217.2     6,146.1
-----------------------------------------------------------------
    Other receivables               133.6       157.9       126.1
    Investment in 
      unconsolidated affiliates      17.5        12.8         5.4
    Other assets                     73.3        66.8        75.4
-----------------------------------------------------------------
Total Assets                     $7,225.4    $6,659.1    $6,520.9
=================================================================
Liabilities and Stockholder's Equity
  Short-term borrowings:
    Commercial paper             $2,131.7    $1,991.9    $2,259.4
    Deere & Company                 229.5       349.9        57.7
    Current maturities of 
      long-term borrowings        1,632.5     1,042.5     1,143.7
    Other notes payable               5.2         2.4        ---
-----------------------------------------------------------------
      Total short-term 
        borrowings                3,998.9     3,386.7     3,460.8
-----------------------------------------------------------------
  Accounts payable and accrued 
      liabilities:
    Accrued interest on 
      senior debt                    41.0        39.2        36.1
    Other payables                  220.2       188.3       167.4
-----------------------------------------------------------------
      Total accounts payable 
        and accrued liabilities     261.2       227.5       203.5
-----------------------------------------------------------------
  Deposits withheld from 
    dealers and merchants           143.9       144.2       131.2
-----------------------------------------------------------------
  Long-term borrowings:
    Senior debt                   1,815.2     1,782.9     1,799.6
    Subordinated debt               150.0       300.0       150.0
-----------------------------------------------------------------
      Total long-term borrowings  1,965.2     2,082.9     1,949.6
-----------------------------------------------------------------
      Total liabilities           6,369.2     5,841.3     5,745.1
-----------------------------------------------------------------
  Stockholder's equity
    Common stock, without par value
      (issued and outstanding -- 
      2,500 shares owned by John 
      Deere Credit Company)         112.8       112.8       112.8
    Retained earnings               743.7       705.2       663.1
    Cumulative translation 
        adjustment                    (.3)        (.2)        (.1)
-----------------------------------------------------------------
      Total stockholder's equity    856.2       817.8       775.8
-----------------------------------------------------------------
Total Liabilities and 
  Stockholder's Equity           $7,225.4    $6,659.1    $6,520.9
=================================================================

             See Notes to Interim Financial Statements.

Page 3

<PAGE>

          John Deere Capital Corporation and Subsidiaries
              Statements of Consolidated Cash Flows
                          (Unaudited)
                         (in millions)

                                       Six Months Ended April 30,
                                       --------------------------
                                           1998           1997
                                       --------------------------
Cash Flows from Operating Activities:
  Net income                            $    63.5       $   58.7
  Adjustments to reconcile net 
    income to net cash provided
    by operating activities:
  Provision for credit losses                24.5           16.2
  Provision for depreciation                 50.3           31.7
  Equity in loss of unconsolidated 
    affiliates                                ---             .8
  Other                                       2.1            (.3)
-----------------------------------------------------------------
    Net cash provided by 
      operating activities                  140.4          107.1
-----------------------------------------------------------------
Cash Flows from Investing Activities:
  Cost of receivables and 
    leases acquired                      (3,591.0)      (3,203.6)
  Collections of receivables              2,679.5        2,555.4
  Proceeds from sales of receivables        243.4           29.1
  Other                                      45.2           33.4
-----------------------------------------------------------------
    Net cash used for investing 
      activities                           (622.9)        (585.7)
-----------------------------------------------------------------
Cash Flows from Financing Activities:
  Increase in commercial paper              139.8          569.5
  Change in receivable/payable 
    with Deere & Company                   (124.4)        (481.5)
  Change in other notes payable               2.8            ---
  Proceeds from issuance of 
    long-term borrowings                    781.0          455.0
  Principal payments on 
    long-term borrowings                   (307.5)         (27.5)
  Dividends paid                            (25.0)         (40.0)
-----------------------------------------------------------------
    Net cash provided by 
      financing activities                  466.7          475.5
-----------------------------------------------------------------
Net decrease in cash and 
  cash equivalents                          (15.8)          (3.1)
Cash and cash equivalents 
  at the beginning of period                204.4          171.0
-----------------------------------------------------------------
Cash and cash equivalents 
  at the end of period                  $   188.6      $   167.9
=================================================================

            See Notes to Interim Financial Statements.

Page 4

<PAGE>

         John Deere Capital Corporation and Subsidiaries
             Notes to Interim Financial Statements

(1)    The consolidated financial statements of John Deere 
Capital Corporation (Capital Corporation) and its subsidiaries 
(the Company) have been prepared by the Company, without audit, 
pursuant to the rules and regulations of the Securities and 
Exchange Commission.  Certain information and footnote 
disclosures normally included in annual financial statements 
prepared in accordance with generally accepted accounting 
principles have been condensed or omitted as permitted by such 
rules and regulations.  All adjustments, consisting of normal 
recurring adjustments, have been included.  Management believes 
that the disclosures are adequate to present fairly the financial 
position, results of operations and cash flows at the dates and 
for the periods presented.  It is suggested that these interim 
financial statements be read in conjunction with the financial 
statements and the notes thereto included in the Company's latest 
annual report on Form 10-K.  Results for interim periods are not 
necessarily indicative of those to be expected for the fiscal 
year.

The preparation of financial statements in conformity with 
generally accepted accounting principles requires management to 
make estimates and assumptions that affect the reported amounts 
and related disclosures.  Actual results could differ from those 
estimates.

(2)    The principal business of the Company is providing and 
administering financing for retail purchases of new and used 
equipment manufactured by Deere & Company's agricultural, 
construction and commercial and consumer equipment divisions.  The 
Company purchases retail installment sales and loan contracts 
(retail notes) from Deere & Company and its wholly-owned 
subsidiaries (collectively called John Deere).  John Deere 
acquires these retail notes through independent John Deere retail 
dealers.  The Company also purchases and finances certain 
agricultural, construction and lawn and grounds care retail notes 
unrelated to John Deere.  In addition, the Company purchases and 
finances recreational product retail notes acquired from 
independent dealers and marine product mortgage service companies 
(recreational product retail notes).  The Company also leases 
equipment to retail customers, finances and services revolving 
charge accounts acquired from and offered through merchants in the 
agricultural, construction, lawn and grounds care and yacht 
markets (revolving charge accounts), and provides wholesale 
financing for inventories of recreational vehicles, manufactured 
housing units, yachts, John Deere engines, and John Deere 
agricultural and John Deere construction equipment owned by 
dealers of those products (wholesale notes). Retail notes, 
revolving charge accounts, direct financing leases and wholesale 
notes receivable are collectively called "Receivables." 
Receivables and operating leases are collectively called 
"Receivables and Leases."

(3)    The Company's ratio of earnings to fixed charges was 1.55 
to 1 for the second quarter of 1998 compared with 1.57 to 1 for 
the second quarter of 1997.  The consolidated ratio of earnings 
to fixed charges was 1.54 to 1 for the first six months of 1998 
and 1.60 to 1 for the first six months of 1997.  "Earnings" 
consist of income before income taxes, the cumulative effect of 
changes in accounting and fixed charges.  "Fixed charges" consist 
of interest on indebtedness, amortization of debt discount and 
expense, an estimated amount of rental expense under capitalized 
leases which is deemed to be representative of the interest 
factor and rental expense under operating leases.

(4)    Beginning in September 1997, certain notes from dealers 
for the financing of "purchase for rental equipment" were 
considered wholesale notes.  Prior to that time, such notes were 
considered retail notes.  During the first six months of 1998, 
$92 million of these wholesale notes were acquired.  Prior period 
volumes and ending balances have not been adjusted to reflect 
this change in policy.

Page 5

<PAGE>

Item 2.    Management's Discussion and Analysis of Financial 
Condition and Results of Operations.

Results of Operations

Net income was $32.9 million for the second quarter of 1998 and 
$63.5 million for the first six months of 1998 compared with 
$29.0 million and $58.7 million for the same periods last year.  
The 1998 second quarter and year-to-date results benefited from 
gains of $10.3 million on sales of recreational vehicle retail 
notes and higher income from a 12 percent increase in the average 
balance of receivables and leases financed during the first six 
months.  These results were partially offset by narrower 
financing spreads, higher write-offs of receivables and higher 
operating expenses.

Revenues totaled $213.5 million and $411.7 million for the second 
quarter and for the first six months of 1998 compared to $179.1 
million and $342.6 million for the same periods a year ago.  In 
addition to gains on sales of receivables, revenues increased due 
to continued growth in operating leases, retail notes on John 
Deere equipment, wholesale notes and revolving charge accounts. 
Lease revenues increased $34.1 million, to $84.5 million in the 
first six months of 1998, from $50.4 million in the first six 
months of 1997, largely due to a number of leasing incentives 
related to John Deere agricultural and construction equipment.  
Finance income earned on retail notes increased $16 million to 
$211.6 million for the first six months of 1998 from $195.6 
million earned in the first six months of 1997.  This increase was 
primarily due to a larger average retail installment portfolio 
financed.  Increases in wholesale note revenues were the result 
of increased activity for John Deere agricultural, construction, 
and lawn and grounds care equipment owned by dealers as well as a 
larger yacht wholesale portfolio (see note 4 to the consolidated 
financial statements for additional information).  Revolving 
charge accounts continue to benefit from strong demand for 
agricultural operating loans and Farm Plan financing.

In March 1998, the Company sold approximately $210 million in 
recreational vehicle retail notes, without recourse, to unrelated 
third parties.  These transactions resulted in gains on notes 
sold of $10.3 million.  The Company continues to offer retail 
installment financing on recreational vehicles. 

Total interest expense for the second quarter increased from 
$78.6 million in 1997 to $91.1 million in 1998.  Interest expense 
increased from $150.1 million for the first six months of 1997 to 
$179.4 million for the first six months of 1998.  The increase in 
interest expense was the result of higher average borrowing costs 
and increased borrowings required to finance the larger average 
portfolio of Receivables and Leases.  Total average borrowings 
during the first six months of 1998 were $5.667 billion, compared 
to $5.150 billion in the first six months of 1997.

Administrative and operating expenses were $28.5 million in the 
second quarter of 1998 and $55.0 million for the first six months 
of 1998, compared with $26.0 million and $48.7 million for the 
same periods in 1997.  This increase was the result of higher 
employment costs associated with administering a larger 
Receivable and Lease portfolio.   Depreciation of equipment on 
operating leases increased to $25.4 million in the second quarter 
of 1998 and $48.8 million for the first six months of 1998, 
compared to $17.5 million in the second quarter of 1997 and $31.8 
million for the first six months of 1997.

During the second quarter and the first six months of 1998, the 
provision for credit losses totaled $15.2 million and $24.5 
million, respectively, compared with $9.7 million and $16.2 
million in the same periods last year.  The increase in the 
provision for credit losses was primarily the result of increases 
in agricultural and construction retail note write-offs in 1998.  
The annualized provision for credit losses, as a percentage of 
the total average portfolio outstanding, was .90 percent for the 
second quarter of 1998 and .74 percent for the first six months 
of 1998, compared with .65 percent and .57 percent for the same 
periods last year. 

Page 6

<PAGE>

Receivable and Lease acquisition volumes were as follows (dollars 
in millions):

                              Three Months
                             Ended April 30,
                            ----------------
                             1998      1997     $ Chng     % Chng
                            -------------------------------------
Retail note volumes:
  Agricultural equipment    $  607    $  610    $   (3)       --%
  Construction equipment       109        85        24        28
  Lawn and grounds care 
    equipment                   46        35        11        31
  Recreational products        100       146       (46)      (32)
                            ---------------------------
    Total retail note 
      volumes                  862       876       (14)       (2)
Wholesale notes                395       260       135        52
Revolving charge accounts      441       324       117        36
Financing Leases                29        30        (1)       (3)
Equipment on operating
  leases                       188       109        79        72
                            ---------------------------
    Total Receivable and
      Lease volumes         $1,915    $1,599    $  316        20
                            ===========================


                               Six Months
                             Ended April 30,
                            ----------------
                             1998      1997     $ Chng     % Chng
                            -------------------------------------
Retail note volumes:
  Agricultural equipment    $1,445    $1,449    $   (4)       --%
  Construction equipment       206       185        21        11
  Lawn and grounds care 
    equipment                   67        58         9        16
  Recreational products        165       210       (45)      (21)
                            ---------------------------
    Total retail note 
      volumes                1,883     1,902       (19)       (1)
Wholesale notes                674       512       162        32
Revolving charge accounts      697       556       141        25
Financing Leases                52        53        (1)       (1)
Equipment on operating
  leases                       284       181       103        57
                            ---------------------------
    Total Receivable and 
      Lease volumes        $ 3,590   $ 3,204    $  386        12
                           ============================



Total Receivables and Leases owned were as follows (in millions):

                          April 30,  October 31,  April 30,
                             1998       1997        1997
                           -------------------------------
Retail notes owned:      
  Agricultural equipment   $ 3,039    $ 2,556     $ 2,870 
  Construction equipment       677        660         639 
  Lawn and grounds care 
    equipment                  220        216         185 
  Recreational products        735        917         911 
                           ------------------------------
    Total retail notes 
      held                   4,671      4,349       4,605 
Wholesale notes                670        593         522
Revolving charge accounts      627        619         511 
Financing leases               218        215         194
Equipment on operating
  leases                       712        527         403
                           ------------------------------
    Total Receivables and 
      Leases owned         $ 6,898    $ 6,303     $ 6,235 
                           ==============================

Page 7

<PAGE>

For the second quarter and first six months of 1998, agricultural 
retail note volumes remained relatively stable when compared to 
the same periods in 1997.  Construction and lawn and grounds care 
retail notes increased in both periods in 1998 over 1997.  
Recreational product retail note volumes declined in both the 
second quarter and the first six months of 1998, due to a 
decrease in yacht retail note volumes when compared to last year.  
During the second quarter of 1997, the Company purchased $17 
million of yacht retail notes from a third party.  

Revolving charge accounts increased significantly in the second 
quarter and first six months of 1998 primarily due to increases 
in agricultural operating loans and Farm Plan volumes, when 
compared to 1997.  Wholesale notes also increased due to higher 
agricultural dealer purchase-for-rental volumes and yacht 
wholesale activity.  Operating lease volumes continued to 
increase significantly over last year due to agricultural low-
rate and guaranteed residual value leasing programs sponsored by 
the Company or John Deere.

Receivables and Leases administered by the Company, which include 
retail notes previously sold, were as follows (in millions):

                           April 30,  October 31,  April 30,
                             1998       1997        1997
                           ---------------------------------
Receivables and Leases 
    administered:      
  Receivables and Leases
    owned by the Company   $ 6,898    $ 6,303      $ 6,235 
  Retail notes sold and 
    securitized (with 
    recourse)*                 782      1,314          720
  Retail notes sold 
    (without recourse)         196        ---          ---
                           ---------------------------------
    Total Receivables and
      Leases administered  $ 7,876    $ 7,617      $ 6,955
                           =================================

* The Company's estimated maximum exposure under all retail note
  recourse provisions at April 30, 1998 was $150 million.

Additional sales of retail notes are expected in the future.


Total Receivable and Lease amounts 60 days or more past due, by 
product and as a percentage of total balances held were as 
follows (dollars in millions):

                         April 30,     October 31,    April 30,
                           1998           1997          1997
                        -----------------------------------------
                        Dollars   %    Dollars  %    Dollars  %
                        -----------------------------------------
Retail notes:            
  Agricultural 
    equipment          $ 10.0    .33%  $ 6.8   .27%  $ 9.6   .33%
  Construction 
    equipment             2.4    .36     2.0   .31     2.1   .33
  Lawn and grounds 
    care equipment         .7    .31      .6   .28      .8   .41
  Recreational products    .1    .02      .3   .03      .1   .02
                        -----          -----         -----
    Total retail notes   13.2    .28     9.7   .22    12.6   .27
Wholesale notes           2.3    .34     2.0   .33     1.6   .31
Revolving charge 
  accounts                8.8   1.41     8.3  1.34     9.9  1.98

Leases                    4.1    .44     2.0   .27     3.2   .53
                        -----          -----         -----  
    Total Receivables 
      and Leases        $28.4    .41   $22.0   .35   $27.3   .44
                        =====          =====         =====

Page 8

<PAGE>

The balance of retail notes owned (principal plus accrued 
interest) with any installment 60 days or more past due was $57.2 
million, $44.4 million and $57.6 million at April 30, 1998, 
October 31, 1997 and April 30, 1997, respectively.  The balance 
of retail notes held on which any installment is 60 days or more 
past due as a percentage of ending retail notes receivable was 
1.23 percent, 1.02 percent and 1.25 percent at April 30, 1998, 
October 31, 1997 and April 30, 1997, respectively.

During the second quarter and the first six months of 1998, 
write-offs (net of recoveries) of Receivables and Leases totaled 
$11.6 million and $18.8 million, respectively, compared with $8.9 
million and $14.4 million in the same periods last year.  
Annualized write-offs, as a percentage of the total average 
portfolio outstanding, were .69 percent for the second quarter of 
1998 and .57 percent for the first six months of 1998, compared 
with .60 percent and .50 percent for the same periods last year.  
Write-offs relating to retail notes increased 30 percent, or $2.3 
million, in the first six months of 1998, when compared with the 
first six months of 1997, primarily due to increased write-offs 
of agricultural and construction equipment retail notes.  
Revolving charge account write-offs in 1998 remain relatively 
stable when compared to last year, while recreational product 
retail note write-offs declined.   

Deposits withheld from dealers and merchants, representing mainly 
withholding accounts from individual John Deere dealers to which 
losses from retail notes and leases can be charged, amounted to 
$143.9 million at April 30, 1998, compared with $144.2 million at 
October 31, 1997 and $131.2 million at April 30, 1997.  The 
Company's allowance for credit losses on all Receivables and 
Leases totaled $85.7 million at April 30, 1998, $85.9 million at 
October 31, 1997 and $89.2 million at April 30, 1997.  Allowance 
for credit losses represented 1.24 percent of the unpaid balance 
of Receivables and Leases financed at April 30, 1998, 1.36 
percent at October 31, 1997, and 1.43 percent at April 30, 1997.  
The Company's allowance for credit losses, as a percentage of 
total Receivables and Leases, has declined during the last twelve 
months due to an ongoing reevaluation of loss experience and 
related adjustments to ensure that the allowance is maintained at 
an adequate level. 

Capital Resources and Liquidity

The Company relies on its ability to raise substantial amounts of 
funds to finance its Receivable and Lease portfolios.  The 
Company's primary sources of funds for this purpose are a 
combination of borrowings and equity capital.  Additionally, the 
Company periodically sells substantial amounts of retail notes in 
the public market and in private sales.  The Company's ability to 
obtain funds is affected by its debt ratings, which are closely 
related to the outlook for and the financial condition of Deere & 
Company, and the nature and availability of support facilities, 
such as its lines of credit.  For information regarding Deere & 
Company and its business, see Exhibit 99.  

The Company's ability to meet its debt obligations is supported 
in a number of ways as described below.  All commercial paper 
issued is backed by bank credit lines.  The assets of the Company 
are self-liquidating in nature.  A strong equity position is 
available to absorb unusual losses on these assets.  Liquidity is 
also provided by the Company's ability to sell these assets.  
Asset-liability risk is also actively managed to minimize 
exposure to interest rate fluctuations.

Total interest-bearing indebtedness amounted to $5.963 billion at 
April 30, 1998, compared with $5.470 billion at October 31, 1997 
and $5.411 billion at April 30, 1997, generally corresponding 
with the level of Receivables and Leases financed.  Total short-
term indebtedness amounted to $3.998 billion at April 30, 1998, 
compared with $3.387 billion at October 31, 1997 and $3.461 
billion at April 30, 1997.  Total long-term indebtedness amounted 
to $1.965 billion, $2.083 billion and $1.950 billion at April 30 
1998, October 31, 1997 and April 30, 1997, respectively.  The 
ratio of total interest-bearing debt to stockholder's equity was 
7.0 to 1, 6.7 to 1 and 7.0 to 1 at April 30, 1998, October 31, 
1997 and April 30, 1997, respectively.  During the first six 
months of 1998, the Capital Corporation issued $200 million of 
5.85% Notes due in 2001, and retired $150 million of floating-
rate notes due in 1998.  The Capital Corporation also issued $581 
million and retired $157.5 million of medium-term notes during 
the same period.

At April 30, 1998, the Capital Corporation, Deere & Company, John 
Deere Limited (Canada) and John Deere Credit Inc. (Canada), 
jointly, maintained $5.015 billion of unsecured lines of credit 
with various banks in North America and overseas, $717 million of 
which was unused.  For the purpose of computing unused credit 
lines, total short-term borrowings, excluding the current portion 
of long-term borrowings, of the Capital Corporation, Deere & 
Company, John Deere Limited (Canada) and John Deere Credit Inc. 
(Canada) were considered to constitute utilization.  Included in 
the total credit lines is a long-term credit agreement for $3.500 
billion.  An annual facility fee on the credit agreement is 
charged to the Capital Corporation based on utilization.

Page 9

<PAGE>

The Company's business is somewhat seasonal, with overall 
acquisitions of Receivables and Leases traditionally higher in 
the second half of the fiscal year than in the first half and 
overall collections of Receivables and Leases traditionally 
somewhat higher in the first half of the fiscal year.

During the first six months of 1998, the aggregate net cash 
provided by operating and financing activities was primarily used 
to increase Receivables and Leases.  Net cash provided by 
operating activities was $140 million in the first six months of 
1998.  Financing activities provided $467 million during the same 
period, resulting from a $492 million net increase in total 
borrowings, which was offset by $25 million in dividend payments 
to John Deere Credit Company.  Net cash used for investing 
activities totaled $623 million in 1998, primarily due to 
Receivable and Lease acquisitions exceeding collections and sales 
of receivables by $668 million.  Cash and cash equivalents 
decreased $16 million during the first six months of 1998.  

During the first six months of 1997, the aggregate net cash 
provided by operating and financing activities was primarily used 
to increase Receivables and Leases.  Net cash provided by 
operating activities was $107 million in the first six months of 
1997.  Financing activities provided $476 million during the same 
period, resulting from a $516 million net increase in total 
borrowings, which was offset by $40 million in dividend payments 
to John Deere Credit Company.  Net cash used for investing 
activities totaled $586 million in 1997, primarily due to 
Receivable and Lease acquisitions exceeding collections by $648 
million.  Cash and cash equivalents decreased $3 million during 
the first six months of 1997.  

The Capital Corporation paid a cash dividend to John Deere Credit 
Company of $12.5 million in each of the first two quarters of 
1998.  John Deere Credit Company paid comparable dividends to 
Deere & Company.  On May 29, 1998, the Capital Corporation 
declared a cash dividend of $12.5 million to John Deere Credit 
Company, which, in turn, declared a cash dividend of $12.5 
million to Deere & Company, each payable on June 9, 1998.


Item 3.  Quantitative and Qualitative Disclosures About Market 
Risk.

See the information under "Management's Discussion and Analysis," 
Note 12 "Financial Instruments" and "Supplemental Information 
(Unaudited)" in the Company's most recent annual report filed on 
Form 10-K.  There has been no material change in this 
information.

Page 10

<PAGE>

                PART II.    OTHER INFORMATION


Item 1.  Legal Proceedings.

           The Company is subject to various unresolved legal
           actions which arise in the normal course of its 
           business, the most prevalent of which relate to state 
           and federal laws and regulations concerning retail 
           credit.  Although it is not possible to predict with 
           certainty the outcome of these unresolved legal 
           actions or the range of possible loss, the Company 
           believes these unresolved legal actions will not have 
           a material effect on its financial position or results 
           of operations.

Item 2.  Changes in Securities and Use of Proceeds.

           Omitted pursuant to instruction H(2).

Item 3.  Defaults Upon Senior Securities.

           Omitted pursuant to instruction H(2).

Item 4.  Submission of Matters to a Vote of Security Holders.

           Omitted pursuant to instruction H(2).

Item 5.  Other Information.

           None.

Item 6.  Exhibits and Reports on Form 8-K.

           (a)    Exhibits.

                  See the index to exhibits immediately preceding
                  the exhibits filed with this report.

                  Certain instruments relating to long-term debt,
                  constituting less than 10% of the registrant's
                  total assets, are not filed as exhibits
                  herewith pursuant to Item 601(b)(4)(iii)(A) of
                  Regulation S-K.  The registrant will file
                  copies of such instruments upon request of the
                  Commission.

           (b)    Reports on Form 8-K.

                  Current report on Form 8-K dated February 17,
                  1998 (items 5 and 7).

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<PAGE>



                         SIGNATURES



Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.


 
                                JOHN DEERE CAPITAL CORPORATION

Date: June 8, 1998         By:  /s/ N. J. Jones
                                    --------------------------
                                    N. J. Jones
                                    Senior Vice President 
                                   (Principal Financial Officer)










Page 12

<PAGE>



                      INDEX TO EXHIBITS



Exhibit                                                 
-------                                                 
  
(4.1) Amended and restated credit agreements among 
      Deere & Company, the registrant, various 
      financial institutions and The Chase Manhattan 
      Bank, Bank of America National Trust and Savings
      Association, Deutsche Bank AG New York Branch, 
      The Toronto-Dominion Bank, Morgan Guaranty Trust 
      Company of New York, Nationsbank, N.A. and The 
      First National Bank of Chicago as Managing Agents, 
      dated as of February 24, 1998 (Exhibit 4.1 to 
      Form 10-Q of Deere & Company for the quarter ended 
      April 30, 1998, Securities and Exchange Commission
      file number 1-4121*).

(4.2) Third Amending Agreements to Loan Agreements 
      among John Deere Limited, John Deere Credit Inc., 
      various financial institutions and The Toronto-
      Dominion Bank as agent, dated as of 
      February 24, 1998 (Exhibit 4.2 to Form 10-Q of 
      Deere & Company for the quarter ended April 30,
      1998, Securities and Exchange Commission file
      number 1-4121*).

(12)  Computation of ratio of earnings to fixed charges 
  
(27)  Financial data schedule                            
  
(99)  Part I of Deere & Company Form 10-Q for the 
      quarter ended April 30, 1998 (Securities and 
      Exchange Commission file number 1-4121*).  










------------------------------
*    Incorporated by reference.  Copies of these exhibits are
     available from the Company upon request.

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