“Luckily, America’s premier business publication isn’t buying such nonsense and is actually reporting on what’s transpiring in the marketplace, where a string of expensive natural disasters and low commodity prices are reshaping the industry.”
The Wall Street Journal reports Cargill Inc. has agreed to sell its crop insurance business to Silveus Insurance Group. Cargill’s decision to sell its crop insurance division during a time of commodity price slumps lends validity to the NCIS statement.
The NCIS statement points out that the business of insuring crops against financial or physical loss has grown tougher as commodity prices have slumped over the past three years. Premiums are tied to the value of the crop, so as crop values decrease, the crop insurance company’s benefit decreases also. NCIS also reports Wells Fargo & Co. agreed to sell its Rural Community Insurance Services division.
More crop protection talk is expected to crop up this year in the legislature regarding cuts to the crop insurance programs provided by the farm bill. FG
