Deere and Co, the world’s largest equipment maker, said it reached definitive agreement to sell its crop insurance unit to Farmers Mutual Hail Insurance Co., of West Des Moines, Iowa. “The agreement will result in Deere selling both John Deere Insurance Company and John Deere Risk Protection, Inc., which together made up the crop insurance business unit,” said Deere in a statement from its headquarters in Moline, Illinois. Deere entered the crop insurance business nine years ago. A strategic review led to an announcement several months ago that the unit would be sold. Deere did not mention a sales price for the deal, which requires approval by regulators.
With the acquisition, Farmers Mutual Hail would have sales in 39 states and more than $1 billion in gross written premiums, said AgWeb.