<SUBMISSION>
<ACCESSION-NUMBER>0000315189-99-000001
<TYPE>424B3
<PUBLIC-DOCUMENT-COUNT>1
<FILING-DATE>19990107
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>DEERE & CO
<CIK>0000315189
<ASSIGNED-SIC>3523
<IRS-NUMBER>362382580
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1031
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>424B3
<ACT>33
<FILE-NUMBER>033-54165
<FILM-NUMBER>99502281
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE JOHN DEERE PLACE
<CITY>MOLINE
<STATE>IL
<ZIP>61265
<PHONE>3097658000
</BUSINESS-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<TEXT>

PROSPECTUS AND			PRICING SUPPLEMENT NO. 1
PROSPECTUS SUPPLEMENT,		Effective at 12:00 PM ET
each dated July 14, 1994	December 15, 1998
CUSIP: 24420ECE9			Commission File No.: 33-54165
					Filed pursuant to Rule 424(b)(3)

(Correct Filing-previously filed on 17 December 1998
under John Deere Capital Corporation CIK number)

		U.S. $500,000,000

	DEERE AND COMPANY

	 MEDIUM-TERM NOTES, SERIES C

Due from 9 Months to 30 Years from Date of Issue

	----------------------------------------------

The Medium-Term Notes offered hereby will be Senior Notes as
more fully described in the accompanying Prospectus and Prospectus
Supplement and will be denominated in U.S. Dollars.



INTEREST PAYMENT DATES:			Each March 15, September 15, 
commencing on March 15, 1999, 
and at Maturity

PRINCIPAL AMOUNT:                   $50,000,000

DATE OF ISSUE:				December 18, 1998

MATURITY DATE:				January 15, 2002

INTEREST RATE:				5.35% PER ANNUM

REDEMPTION PROVISIONS:			NONE

PLAN OF DISTRIBUTION:			JP Morgan Securities Inc.
                                    has purchased the Senior Notes as 
                                    principal at a price of 99.876% of 
                                    the aggregate principal amount of 
                                    the Senior Notes.

                           
SETTLEMENT:					Through the Depository Trust Company

JP Morgan Securities Inc.


</TEXT>
</DOCUMENT>
</SUBMISSION>
