Cargill is exiting the crop-insurance business.
The company struck a deal with Warsaw, Ind.-based Silveus Insurance Group. This is Cargill’s latest move to revamp its business portfolio.
In the past year Cargill has sold its U.S. pork operations, spun off a hedge-fund unit, acquired a Norwegian fish-feed producer and streamlined its executive team. Cargill says its agricultural retail division will focus more directly on buying grain from farmers and selling them other risk-management services.
Jeff Klock, president of Cargill Crop Insurance, says the company chose Silveus because of its strong focus on crop insurance and the tools the company has developed to help farmers manage risk.
Silveus CEO Tyler Silveus says this is the first significant purchase the company has made in the crop insurance area and says the acquisition will accelerate the company’s growth and innovation.
Cargill entered into the crop insurance business in 2007. The terms of the deal have not been disclosed but is expected to be finalized in mid-January.
Source: www.brownfieldagnews.com