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    Home > Food News > Food Articles > Laying hen farmers have "double insurance" for income

    Laying hen farmers have "double insurance" for income

    • Last Update: 2023-02-02
    • Source: Internet
    • Author: User
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    The "Policy Laying Hen Futures Income Insurance" was officially signed a few days ago and landed in Pingdu City, Qingdao City, Shandong Province
    .
    This insurance became the first government-led and subsidized layer hen futures income insurance
    in China.

    "Due to the rise in chicken feed prices, chicken farms spend 20,000 yuan more on 60,000 catties of feed a day, and through laying hens to earn 'insurance + futures', insurance companies lock in profits in the futures market in advance, helping to recover this loss
    .
    " Chen Xizuo, chairman of Qingdao Chenshi Weiye Agriculture and Animal Husbandry Co.
    , Ltd.
    , said that the chicken farm is currently raising 300,000 laying hens, with an average daily output of 15 tons of eggs, and with the "double insurance" of "insurance + futures" of laying hen income, the chicken farm earns more than 600,000 yuan
    in one month.

    The "double insurance" mentioned by Chen Xizuo is the "policy layer futures income insurance"
    carried out by the Qingdao branch of China Pacific Property & Casualty Insurance Co.
    , Ltd.
    , the Pingdu Municipal People's Government, Qingdao Laying Hen Industry Association and Zhongtaihui Financing Capital Investment Co.
    , Ltd.
    Laying hen futures income insurance can effectively prevent the risk of falling egg prices and rising feed costs, and provide "double insurance"
    for the layer hen industry.
    Based on the pilot experience of "insurance + futures" in Pingdu City in the early stage, this model further explores and innovates, linking the government, insurance, futures and farmers, and using innovative financial services "three rural areas"
    .

    Relying on the market-oriented operation of insurance companies, the government provides policy support for premium subsidies and compensates
    for the market risks of agriculture through insurance.
    The use of "insurance + futures" to increase the leverage of fiscal funds, leverage the capital market by 20 times, so that farmers can get more risk compensation
    .
    At the same time, it can achieve 100% compensation for the project, and if the egg price decreases, there is no upper limit on how much compensation is reduced; In the event of a rise in the price of corn and soybean meal, there is no upper limit on how much compensation will increase, so as to maximize the efficiency of
    fiscal funds.

    In the layer hen futures income insurance project, the Qingdao Laying Hen Industry Association organized breeding enterprises as the insured entity to purchase egg price insurance from the Qingdao branch of China Pacific Property & Casualty Insurance Co.
    , Ltd.
    , and the premium is composed of two parts: government subsidies and farmers' own funds, of which 62.
    5% are subsidized by the government and 37.
    5%
    are paid by farmers.
    During the period when eggs are on the market, when the price of eggs falls or feed costs rise, farmers can be paid by insurance companies
    .
    It is understood that the first business of the project can guarantee 3,000 tons of eggs, 4,000 tons of corn and 2,000 tons of soybean meal, effectively guaranteeing the income
    of chicken farmers.

    In recent years, Qingdao has clarified the development idea of animal husbandry of "implementing six major projects, improving the level of six modernizations, and carrying out ten major upgrading actions", adhering to the principle of "stabilizing pigs, expanding cattle, increasing sheep, strengthening poultry, strengthening milk, and cultivating new", continuously optimizing the structure of animal husbandry, and making every effort to build a 100-billion-level animal husbandry industrial chain to ensure the safety
    of the city's "vegetable basket".
    At the same time, we will pay attention to the role of finance in promoting the high-quality development of animal husbandry, and make overall use of financial instruments such as credit, insurance, guarantees, funds, and bonds to ensure the sustainable growth of animal husbandry and promote the increase of income of breeding and farmers
    .

    This time, through the pilot of layer hen futures income insurance, with the help of over-the-counter options and other derivative tools, the compensation risk is transferred to the futures market, which is "reinsurance" for price insurance, changes the original method of transferring agricultural product price risk and the state subsidy method for agricultural products, uses insurance and futures market to undertake and transfer agricultural product price risk, and finally disperses the price risk transfer to the financial capital market, resolves the price risk of farmers, and ensures the enthusiasm of
    farmers 。 Through demonstration, more farmers can understand the knowledge of futures, "insurance + futures", futures delivery, etc.
    , and improve the awareness and level
    of farmers using financial instruments to prevent price fluctuation risks.

    The egg futures income project was jointly innovated and launched by Pingdu Municipal Bureau of Agriculture and Rural Affairs and Qingdao Branch of China Pacific Property Insurance Co.
    , Ltd.
    , Zhongtaihui Financing Capital Investment Co.
    , Ltd.
    and Qingdao Laying Hen Industry Association, which is an innovative measure of insurance model and promotes the more effective development of
    agricultural insurance.
    This model is highly replicable, and insurance companies and futures companies can give full play to their financial advantages and improve the ability of
    financial services "three rural areas".

    (Hou Dan, Han Meng, Zhang Bingqian, Feng Zhi)

    China Food News(December 23, 2022, Version 04)

    (Responsible editor: Zhu Meiqiao)

     

     

     

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