The variety of pilot projects continues to increase, and the coverage areas continue to expand. "Insurance + Futures"——
Provide protection for small and medium-sized farmers to enter the big market (Economic Focus)
Our reporter Zhao Zhanhui
"People's Daily" (10th Edition, January 3, 2023)
core reading
In recent years, "insurance + futures" has continuously increased its support and guarantee for agricultural varieties, and the guarantee effect has become more significant, showing a development trend of both quantity and quality.
As the enthusiasm of agriculture-related entities to participate in insurance continues to increase, "insurance + futures" needs to be further innovated to expand the breadth and depth of serving the agricultural industry chain and continue to provide financial assistance for rural revitalization.
The report of the 20th National Congress of the Communist Party of China proposed to improve the agricultural support and protection system and improve the rural financial service system.
As an important innovation in financial support to agriculture and rural areas, the business model of "insurance + futures" has been piloted for many years.
"Insurance + Futures" is an agricultural insurance product involving price risk developed jointly by insurance institutions and futures institutions. The basis for insurance underwriting and claims settlement is that insurance institutions provide price or income insurance products to agricultural entities, and disperse the price risks involved in insurance products in the futures market through futures institutions.
The variety of pilot projects continues to increase, the coverage area continues to expand, and the protection effect is more significant. According to the 2021-2022 (May 1, 2021-April 30, 2022) data released by the China Futures Association, the "insurance + futures" project has grown. Quickly, a series of new highlights appeared.
Both quantity and quality are improved, and the protection network is weaved wider and denser
Recently, Liu Shuyang, a fruit farmer in Majiazhuang Village, Guanli Town, Qixia City, Shandong Province, added a considerable sum of money to his account.
"Unexpectedly, I got more than 75,000 yuan in compensation, which basically covered the loss." During the recent harvest season, the price of apples fell, and this "insurance + futures" claim made Liu Shuyang turn his worries into joy. 4,200 yuan paid the premium for the 42 mu of orchard, which is really worth it.”
"Market price fluctuations are extensive. It is difficult for general agricultural insurance to disperse the large-scale risk of falling prices. The futures market provides a platform for hedging price risks. Insurance companies carry out price risk transfer in the futures market, that is, 'reinsurance'. From ordinary farmers to the channel of risk transfer in the futures market, to achieve multiple benefits.” The relevant person in charge of Zhengzhou Commodity Exchange said that in 2021, Zhengzhou Commodity Exchange will cooperate with relevant departments to carry out the apple “insurance + futures” pilot project in Shandong Province, with more than 570 apples. The 32,000 mu of apples from famous farmers provided price guarantee.
Today, the "insurance + futures" protection network is getting wider and wider, covering more and more varieties, regions and agricultural groups.
From corn to red dates, from eggs to pigs, from feed to urea...the number of varieties covered by the "insurance + futures" project continues to increase.
According to data from the China Futures Industry Association, as of April 30, 2022, "insurance + futures" has provided risk protection for 15 agricultural-related varieties, involving a spot quantity of 8.9618 million tons and an insured value of 42.198 billion yuan.
From decentralized pilots to county coverage, the pilot area of the project is getting wider and wider. As of April 30, 2022, the "Insurance + Futures" project has covered 244 prefecture-level cities and 703 counties in 31 provinces, covering 1.6377 million rural households There are 975 households, farmers' professional cooperatives, 682 family farms, and 970 other agriculture-related enterprises.
The insurance net of "insurance + futures" has become more and more dense, and the service content and business model have been continuously innovated, so that the "background" is stronger and the guarantee is better.
From "price insurance" to "income insurance", not only the price is guaranteed, but also the output is guaranteed.
Since 2019, Dalian Commodity Exchange has carried out 44 county-level "insurance + futures" income insurance projects in 8 major corn and soybean producing areas.
In 2021, Zhengshang will explore "insurance + futures" income insurance for apple varieties in Huangling County, Yan'an City, Shaanxi Province.
From "income insurance" to "profit insurance", it not only protects the sales side, but also protects the cost side.
In recent years, industry organizations have further innovated and introduced breeding profit insurance that protects both the risk of rising feed costs and the risk of falling prices of live pigs and eggs, further protecting the actual income of farmers.
"More small and medium-sized farmers have effectively connected with the big market." Ran Li, deputy secretary-general of the China Futures Association, said that "insurance + futures", an innovative financial support model based on the basic national conditions and agricultural conditions of small farmers in a big country in my country, provides small and medium-sized farmers with Futures and derivatives, a market-based risk management method, have enhanced their ability to resist market risks and improved agricultural quality, efficiency and competitiveness.
Consolidate joint efforts, boost enthusiasm for insurance participation, and promote agricultural industrialization
Two sets of data released by the China Futures Association show the positive changes in the "insurance + futures" project from 2021 to 2022: First, there are 1,907 projects in the current period, with an insured value of 42.198 billion yuan, of which commercial projects (without futures exchanges) 1,353 supported projects, with an insured value of 21.31 billion yuan, and 554 projects supported by futures exchanges, with an insured value of 20.89 billion yuan. The exchange support fund is 492 million yuan, and the insured entity pays 790 million yuan in premiums.
"These two sets of data reflect the rapid development of commercial projects and the diversification of project insurance premium composition, indicating that under the joint efforts of government departments, exchanges, futures companies and other parties, the enthusiasm of agricultural-related subjects to actively participate in projects has continued to increase. The awareness of agricultural risks and derivatives is constantly increasing.” Ran Li analyzed.
The enthusiasm for insurance comes from the strong support of policies and premium funds.
Ran Li introduced that the No. 1 Central Document mentioned the "insurance + futures" model for many years. Encouraged by policies, futures exchanges and futures companies provided long-term financial support for project insurance premiums, and local governments and social assistance units supported project insurance premiums. The efforts are also constantly increasing, effectively reducing the cost of farmers participating in "insurance + futures" and increasing their willingness to participate.
The enthusiasm for insurance also comes from the sense of gain.
From 2021 to 2022, the "insurance + futures" project will realize a cumulative compensation amount of 1.34 billion yuan.
"Corn in Huachuan, Heilongjiang, apples in Yanchang, Shaanxi, natural rubber in Baisha, Hainan, and white sugar in Menglian, Yunnan, have all been successfully piloted for many years, continuously optimizing risk protection for relevant agricultural entities, and also improving other agricultural entities to actively understand, Willingness to participate in the project." Ran Li said.
The good protection effect of "insurance + futures" not only improves the enthusiasm for insurance participation, but also further stimulates the enthusiasm for production.
Guarantees are woven into a network from point to surface, and production is from small to large-scale industries. Under the escort of "insurance + futures", Yixian County, Jinzhou City, Liaoning Province has completed such a transformation.
In 2015, DCE launched the first pilot project of "insurance + futures" in Yixian County in China; in 2016, the insured farmers who tasted the sweetness of insurance began to expand the area of corn planting; in 2017, local cooperatives were established and large-scale production began ; In 2018, a spot company was established to extend to the downstream of the industrial chain... The "insurance + futures" project drove agricultural production from small to large, from decentralization to industrialization and scale.
According to statistics from the China Futures Industry Association, among the 703 counties covered by the project in 2021-2022, 231 of the original 832 national-level poverty-stricken counties were involved, including 44 counties supported by the national rural revitalization. "Insurance + futures" continued Provide financial support for rural revitalization.
Continue to innovate and continuously improve the breadth and depth of serving the agricultural industry chain
In Wucheng County, Shandong Province, Wucheng Rural Commercial Bank used the "insurance + futures" policy credit enhancement function to increase the amount of credit loans or pledge loans for project participants, and issued loans of 28 million yuan to insured farmers to guarantee initial planting investment. Financing problems for farmers.
In Yanchang County, Shaanxi Province, six major apple producing areas piloted the basic model of "insurance + futures" to introduce leading agricultural enterprises, farmers' professional cooperatives, and family farms as spot purchase enterprises to develop contract agriculture, promote the solution to the difficult problem of apple sales, and stabilize the Industry chain interest linkage mechanism.
In Haicheng City, Liaoning Province, the "insurance + futures" pilot explored the insurance of pig breeding income that combines traditional breeding insurance and pig price insurance, and used artificial intelligence technology to identify the number of live pigs and monitor the breeding situation, effectively solving the traditional pig breeding insurance protection low level problem.
"Insurance + Futures + Order", "Insurance + Futures + Bank", "Insurance + Futures + Artificial Intelligence"...In recent years, the "Insurance + Futures" business has explored model innovation in relatively mature pilot areas, breaking through barriers such as industry and technology, It has expanded the breadth and depth of serving the agricultural industry chain.
Innovation is also the key word for the "insurance + futures" model to continue to serve rural revitalization.
"In the future, we will continue to innovate the service chain of 'insurance + futures + N'." Ran Li said that futures companies should improve their internal skills, effectively improve their professional pricing and trading capabilities and product design capabilities, and strengthen their cooperation with insurance companies, commercial banks, and leading agricultural companies. The cooperation of enterprises and other subjects will improve the comprehensiveness of financial services, and explore the provision of risk management services for the entire industrial chain for the agricultural industry on the basis of ensuring farmers' income.
From the perspective of the exchange, in the future, the innovation of the "insurance + futures" model should take into account both standardization and specialization, and further explore transformation and upgrading.
"We should fully combine the characteristics of varieties and the operation of futures and spot markets, and explore the path and mechanism for the transformation and upgrading of 'insurance + futures' price insurance for local advantageous and characteristic agricultural products to income insurance by category, so as to effectively improve the level of insurance protection and help characteristic industries grow bigger and stronger. "The relevant person in charge of Zhengzhou Commercial Institute said.
(People's Daily)