The green and yellow giant isn’t just a top machinery company its now one of the largest banks in America.
John Deere are known worldwide for their tractors, machinery and distinctive technology innovations but what you might not know is its now one of America’s largest banks. Yes it seems there’s no end to this Ag giant’s reach with it recently been announced that it’s the fifth biggest Agricultural lender in the USA and the only non banking lender.
John Deere’s lending has been running for a number of years in the US in particular since the financial crash of 2008 wherein it refocused its efforts on leasing high end equipment and machinery rather than pushing for outright sales.
Business it seems took off for as reported in the Wall Street Journal the business now has a loans book of some $2.2 bn and works in non-machinery sectors including seed, fertilizer etc.
So successful has the new venture been that it now accounts for a third of the companies income.
The move seems to have paid of for the company but America’s farmers are not so lucky with many fearing they are getting into new cycles of debt and with no assets like big machinery if times get bad there is little to sell off to make money.
With parts of America facing drought any thought of farmers paying off their debts and getting back on top of things is a long way off and as a result the loans business for Deere will continue.
The question to ask is with business so good for Deere may they move into domestic banking? We will just have to wait and see.