Deere Creates Equipment Leasing Program for Russia

Industry analysts said leasing equipment should be an effective way to attract more Russian farmers to the Deere brand. Demand for leased equipment also can drive higher production volumes in Russia and eventually supply the used equipment market in Russia with more Deere machinery.
Courtesy of John Deere

Deere & Co. said it will begin an equipment leasing program in Russia as the company expands its assembly plant near Moscow.

Deere, one of the world's largest manufacturers of farm machinery by sales, said it will establish a leasing company through its John Deere Financial Services division. Deere hopes to broaden its presence in Russia by giving farm, construction and forestry equipment users the option of leasing equipment rather than buying it.

“By establishing a leasing entity in Russia, John Deere will be able to provide retail financing solutions to our customers,” said James Israel, president of John Deere Financial.

“Financing has been a major impediment to Deere's growth in Russia,” said Lawrence De Maria, an analyst for brokerage firm Sterne Agee & Leach Inc. “Leasing puts them in a very good position to get out in front of everybody else.”

Illinois-based Deere and rivals CNH Global NV and Agco Corp. consider Russia a key growth market. All three companies have been increasing their production in Russia by building plants or establishing joint ventures with Russian equipment companies. Deere expects to invest up to $500 million in Russia over the next five to seven years.

– Courtesy of Wall Street Journal