MINNEAPOLIS, MINNESOTA, U.S. — Silveus Insurance Group and Cargill announced on Dec. 29 that they have reached an agreement under which Cargill will sell its crop insurance agency, Cargill Crop Insurance LLC (CCI), to Silveus.
The transaction is expected to close in mid-January. Terms were not disclosed.
“My family has helped farm clients manage risk for four generations,” said Tyler Silveus, chief executive officer (CEO) of Silveus, which is based in Warsaw, Indiana, U.S. “We look forward to getting to know and welcoming to Silveus each farm family, agent, and staff that has been associated with Cargill Crop Insurance.”
Cargill entered the crop insurance agency business in 2007.
“The mission of our grain and crop inputs businesses is to effectively and efficiently help farmers make the most of their investments in agriculture, and help them manage their risks.” said Dave Baudler, president of Cargill AgHorizons U.S., which includes the company’s network of grain elevators and farm service centers in the country. “We believe we can accomplish this mission through our core grain marketing and risk management programs without being directly involved in the sale of Crop Insurance.”
Jeff Klock, president of Cargill Crop Insurance, said, “Cargill chose Silveus because of their strong focus on crop insurance, exceptional capability to serve their customers, and the industry leading tools it has developed to help farmers manage risk. Our customers will have an opportunity to benefit from these tools immediately upon the close of this transaction.”
Silveus said the acquisition of Cargill Crop Insurance is the first significant purchase the company has made in the crop insurance area.
“Acquiring the Cargill business will help us accelerate growth and fuel additional innovation that provides additional value to our farmer clients,” Silveus said.