By Tess Stynes
Deere & Co. agreed to sell its crop-insurance business to
Farmers Mutual Hail Insurance Co. of Iowa, following a strategic
review of the unit that began in September.
The deal, expected to close in the first quarter of next year,
includes the sale of John Deere Insurance Co. and John Deere Risk
Protection Inc., which together comprise the crop insurance
business of John Deere Financial.
Terms weren't disclosed.
Don Preusser, president of the crop-insurance business said West
Des Moines-based Farmers Mutual has been serving farmers for more
than 120 years.
Meanwhile, Deere has been involved in the crop insurance
business for nine years.
Deere, the world's largest producer of farm equipment in terms
of sales, has been hit by a slide in revenue lately as farmers
avoid buying expensive new products amid lower expectations for
commodity prices and harvests.
Write to Tess Stynes at tess.stynes@wsj.com
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