Cargill has agreed to sell its crop insurance unit, the latest move by the giant U.S. agricultural commodity trader and producer to reshape its business amid low crop prices.
The insurance operation will be sold to Silveus Insurance Group, Minneapolis-based Cargill said. Closely held Cargill didn’t disclose terms on the deal, which is expected to close in mid-January. It entered the insurance business in 2007.
The company said it can help farmers manage price risk through its grain marketing and other risk management services.
The sale of its insurance unit caps a difficult year for Cargill. The company, which is still controlled by its founding family, reported its first quarterly net loss in 14 years in August.