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The Ministry of Finance, the Ministry of Agriculture and Rural Affairs, and the China Banking and Insurance Regulatory Commission recently announced that it will expand the scope of implementation of complete cost insurance and planting income insurance for the three major food crops of rice, wheat and corn, stabilize the income of grain farmers, support the development of modern agriculture, and ensure national food security
China will target major grain-producing counties in 13 major grain-producing provinces and regions, including Hebei, Inner Mongolia, Liaoning, Jilin, Heilongjiang, Jiangsu, Anhui, Jiangxi, Shandong, Henan, Hubei, Hunan, and Sichuan.
Among them, full cost insurance, that is, agricultural insurance in which the insurance amount covers the total cost of agricultural production such as direct materialized costs, land costs, and labor costs
The insurance coverage targets all farmers, including farmers with moderate scale operations and small farmers
The relevant person in charge of the Ministry of Finance introduced on the 29th that full cost insurance and planting income insurance should be carried out.
The person in charge said that with the rapid development of moderately large-scale agricultural operations, farmers' risk protection needs are increasing, but the level of protection is still dominated by direct materialized costs, which are about 40% of the total production cost, which is difficult to meet the increasing risk protection of farmers Demand
The person in charge emphasized that "farmers grow grain, and insurance escorts them.