(Nov. 26) The U.S. Department of Agriculture said Nov. 25 that the agency will continue crop insurance payments and services despite losses at a Midwest insurance company.

Acceptance Insurance Cos. Inc., the parent company of American Growers Insurance Co., one of the federal crop insurance providers, recently announced a $131 million loss. Both companies are based in Council Bluffs, Iowa, and a press release said it was uncertain if they could continue to operate in the agricultural sector.
The USDA and the Nebraska Department of Insurance will work together to make certain that policies put in place by American Growers Insurance will continue to be served, the USDA said.

Government-backed crop insurance is mostly used on commodity crops such as corn, soybeans and wheat, but it is offered on a growing selection of produce crops, including apples, avocados, blueberries, citrus, cherries, cabbage, onions, stonefruit, potatoes, sweet corn, sweet potatoes and grapes.

The risk management tools available to American’s producers are delivered by 18 private insurance companies, and USDA’s Risk Management Agency acts as regulator and reinsurer, according to a USDA news release.