China's three major grain agricultural insurances of rice, wheat, and corn have been expanded again

Beijing, July 13 (Xinhua) -- Starting this year, China has launched full cost insurance and planting income insurance for three major grain crops (rice, wheat, and corn) in major grain producing counties across the country. The central and local governments provide premium subsidies to insured farmers.

In recent years, China has continuously expanded the implementation scope of full cost insurance and planting income insurance for the three major grain crops of rice, wheat, and corn, which are related to national economy, people's livelihood, and food security, stabilizing the income of grain farmers and ensuring national food security. Previously, the two types of agricultural insurance have achieved full coverage of grain producing counties in 13 major grain producing provinces and regions.

On the 13th, the Chinese Ministry of Finance, Ministry of Agriculture and Rural Affairs, and State Administration of Financial Supervision and Administration announced that starting from 2023, farmers and agricultural production and operation organizations in major grain producing counties can voluntarily choose to insure their products in materialization cost insurance, full cost insurance, or planting income insurance, but are not allowed to purchase them repeatedly.

Among them, the insurance amount of full cost insurance covers the total agricultural production costs such as materialization costs, land costs, and labor costs; The insurance amount of planting income insurance reflects the price and yield of agricultural products, and the coverage level covers agricultural planting income. The insurance coverage targets all farmers and agricultural production and operation organizations, including moderately sized farmers and small farmers.

The Ministry of Finance and three other departments introduced that the insurance premium rate is determined according to the principle of breakeven and low profit, ensuring that the comprehensive cost rate of agricultural insurance is not higher than 20%. The insurance liability of full cost insurance should cover the risks of major natural disasters, major pests and diseases, accidents, and damage to wildlife in the local area. The insurance liability of planting income insurance should cover income losses caused by fluctuations in agricultural product prices and yields.

The protection level of both types of agricultural insurance shall not exceed 80% of the corresponding variety's output value in principle. On the basis of a provincial government premium subsidy of no less than 25%, the central government provides a subsidy of 45% to the central and western regions and the northeastern region (excluding Dalian City), and a subsidy of 35% to the eastern region. The Ministry of Finance requires local finance departments to promptly allocate premium subsidy funds to underwriting institutions and shall not delay payment.