Iowa-based risk management company receives approval from USDA to provide Federal crop insurance
Johnston, Iowa — August 8, 2017 —Crop Pro Insurance, a new managing general agent (MGA) specializing in crop insurance, recently received Standard Reinsurance Agreement (SRA) approval as an MGA for an “A” rated insurance company from the United States Department of Agriculture (USDA). The approval makes Crop Pro Insurance one of only 16 companies in the world eligible to participate in the Federal Crop Insurance Program.
The SRA status is one step in the company’s overall strategic vision to provide risk management solutions for both traditional and emerging agriculture markets.
“First and foremost, we are committed to serving the needs of the traditional crop insurance market,” said Billy Rose, Chairman of Crop Pro Insurance. “At the same time, agriculture is evolving as new technologies come to market and emerging markets are developing. The SRA approval enables Crop Pro Insurance to offer Federal crop insurance, while Crop Pro also creates and provides risk management solutions. These solutions will help growers and agents manage the potential financial risk in using new technologies and participating in these emerging markets.”
Advancing the future of agriculture through tested industry experience
The Crop Pro Insurance team brings extensive experience in both the agriculture industry as a whole and the Federal Crop Insurance Program specifically.
“Crop Pro Insurance may be a new company but we are not new,” said Joe Young, President of Crop Pro Insurance. “We have decades of proven experience in bringing solutions to agents and growers alike.”
As Chairman of Crop Pro Insurance, Rose will call on over 20 years of experience in the crop insurance industry in building this entrepreneurial venture. Young brings 29 years of industry knowledge and management experience to his position as President of Crop Pro Insurance. Prior to this, he led insurance operations at The Climate Corporation, John Deere Insurance Company and AmTrust Agriculture Insurance Services.
The company will use its expertise in agriculture, technology, and insurance to help growers adjust to changes in the agriculture industry and increase yields and revenue.
Accelerating new technology adoption among growers
The agriculture industry is already working to address consumer demands for non-GMO food and to develop sustainable growing practices that U.S growers are having difficulty meeting and implementing. New technologies are improving non-GMO yields, but non-GMO crop production is not widely practiced by growers due to the perceived risk involved with forgoing more traditional growing practices.
“Eighty percent of non-GMO products consumed in the United States are imported from other areas of the world and new biologicals can replace the use of existing crop protection products,” said Rose. “In order to position the United States as a leader in the non-GMO and sustainable markets, we have to provide growers the support and income assurance they need to confidently embrace new technologies more rapidly.”
Crop Pro Insurance is in a unique position to alleviate risk and accelerate adoption of emerging technologies with progressive private insurance policies designed to increase yields and maximize premiums for growers.
Delivering solutions through a carefully crafted network
Crop Pro Insurance will focus its initial efforts on 13 core Midwestern states. Working with its select network of agents, the company will begin offering differentiated market solutions for the 2018 spring growing season. The company views the agents as vital partners in advancing the agriculture industry as opposed to a delivery system for its products.
“We are building Crop Pro Insurance in partnership with our agents,” said Young. “We are the company bringing differentiated solutions that will make our agencies stand out in the marketplace, helping them retain current customers and attract new customers all while increasing revenues for both growers and agents.”
Crop Pro Insurance presents agencies with traditional and progressive risk management solutions that will protect growers as the industry adapts and changes. These strategies are designed to help agents and growers capitalize on new technologies and increase revenues without sacrificing the reassurance that comes with traditional crop insurance policies.
“We have equity partners who support our vision of serving the traditional crop insurance market while bringing innovative solutions that will help growers de-risk the adoption of new technologies and emerging markets,” said Rose. “Our mission isn’t to be the largest provider. Our mission is to be the best provider.”
About Crop Pro Insurance
Crop Pro Insurance was established to serve the traditional crop insurance market while developing and providing risk management solutions that address emerging markets, preparing agents and growers for future changes in agriculture. Crop Pro is a Managing General Agent (MGA) platform specializing in Federal and private crop insurance whose leadership team has over 200 years of crop management experience. Crop Pro currently operates in the Midwest states through a network of independent agents. Crop Pro’s corporate headquarters are located in Des Moines, Iowa.
Crop Pro Insurance Closes $8 Million Series A to Accelerate AgTech Adoption
Top Ag Investors Back First Insurance and Technology Firm to Help Farmers Alleviate Risk When Deploying Innovative Technologies
DES MOINES, IA — August 8, 2017 — Crop Pro Insurance, an insurance and technology firm dedicated to helping farmers manage risk and maximize profitability, today announced the close of an $8 million Series A round of financing co-led by top agriculture investors Finistere Ventures and Seed 2 Growth Ventures (S2G). Established insurance provider GuideOne Insurance also joined the round.
Headquartered in the heart of Midwest farmlands in Des Moines, Iowa, Crop Pro will use the investment to expand its team and speed the development of products and services that bridge the gap between agricultural and financial technologies.
Crop Pro today also announced that it is the first Ag venture-funded insurance provider to earn approval from the United States Department of Agriculture (USDA) to offer Federal crop insurance products to farmers.
“This is a unique opportunity to bring new technology and business models to the $11B crop insurance market, and we see Crop Pro playing a significant role in connecting AgTech and FinTech,” said Sanjeev Krishnan, CIO and managing director, at S2G Ventures. “Crop insurance is a vital component in ensuring farm risk management, and we are pleased to be partnering with the leading innovator in the sector.”
Crop Pro will offer risk management solutions for emerging and traditional agriculture markets for the 2018 crop season. More than 290 million acres of U.S. farmland are protected through the Federal Crop Insurance Program according to the USDA; with RMA estimating 85 percent of major crops and 73 percent of specialty crops planted acreage are covered.
“Our vision is to help growers minimize risk by delivering proven insurance offerings and new risk management tools through our longstanding network of independent insurance agents. Our investors have the right networks to put us at the nexus of AgTech innovation in financial services,” added Crop Pro Chairman Billy Rose. “As agriculture continues to evolve, we want to empower farmers to use the current wave of advanced technologies to solve longstanding productivity challenges while helping them manage the financial risk.”
Rose and Co-Founder and President Joe Young are veterans of the crop insurance space. With extensive experience in both the agriculture industry as a whole and the Federal Crop Insurance Program specifically, the team will leverage its experience in insurance operations at The Climate Corporation, Crop 1 Insurance and John Deere Insurance Company to advance the future of agriculture and accelerate new technology adoption among growers by providing the needed support and income assurance.
“Crop Pro’s innovative strategy of helping farmers adopt new technologies coupled with new risk management insurance products promises to be a transformative approach. At a time when poor commodity prices and financial uncertainty are meaningful barriers to investment on-farm, Crop Pro’s compelling model has the potential to engage farmers and drive the growth of top AgTech players,” noted Arama Kukutai, managing director and co-founder at Finistere Ventures.
Krishnan and Kukutai will both join the Crop Pro Board and support the company's continued growth as it explores emerging opportunities in Ag.
“Data analytics will transform crop insurance as surely as it will farming itself,” added Rose. “In the future, we also hope to give farmers a way to use their data more effectively to benchmark the efficacy of new technologies, from crop seed to digital agronomy.”
About Crop Pro Insurance
Crop Pro Insurance was established to serve the traditional crop insurance market while developing and providing risk management solutions that address emerging markets, preparing agents and growers for future changes in agriculture. Crop Pro is a Managing General Agent (MGA) platform specializing in Federal and private crop insurance whose leadership team has over 200 years of crop management experience. Crop Pro currently operates in the Mid-West states through a network of independent agents. Crop Pro’s corporate headquarters are located in Des Moines, Iowa.
About Finistere Ventures
Finistere Ventures is a leading California-based agricultural technology and life sciences venture capital investor, with offices in Palo Alto, San Diego and Israel. Its team has developed and invested in some of the most successful AgTech companies of the last 20 years. Visit Finistere.com.
About S2G Ventures
Seed 2 Growth Ventures (S2G) is a multi-stage venture fund investing in food and agriculture in the U.S. The fund’s mission is to catalyze innovation to meet consumer demands for healthy and sustainable food. S2G will identify sectors across the food system that are ripe for change, and form a multi-stage portfolio including seed, venture and growth stage investments.
Connexa Communications for Finistere Ventures
Seed 2 Growth Ventures (S2G)