context: Full-cost and revenue insurance trials were rolled out in major staple-grain-producing counties, with similar products piloted in four soybean-planting counties in 2022. Expanded in 2023, the nationwide implementation of full-cost insurance and revenue insurance for the three major crops (rice, wheat and corn) was announced in May 2024.
Cost insurance and revenue insurance policies will be expanded to include soybeans in the latter half of 2024, announced Wang Dongwei 王东伟 Mof (Ministry of Finance) deputy minister on 31 July.
The move is aimed at reinforcing national food security and ensuring the supply of key ag products, Wang said at an SCIO (State Council Information Office) press conference on advancing high-quality development.
- ag insurance expansion
- premium scale increase
- premiums reached C¥1.4 tn in 2023
- nearly 80 percent covered by government subsidies
- scale expected to rise to C¥1.6 tn in 2024
- premiums reached C¥1.4 tn in 2023
- coverage expansion
- insurance covers 16 major ag products
- grains, cotton, sugar, soybeans
- over 500 regional specialty products.
- provides risk protection for approximately 160 million farming households
- totalling C¥4.5 tn
- insurance covers 16 major ag products
- subsidy budget
- central government subsidies amount to C¥56.2 bn
- C¥19.3 bn allocated for comprehensive three major grain (wheat, rice and corn) cost and income insurance
- central government subsidies amount to C¥56.2 bn
- premium scale increase
- strengthening ag credit guarantee services
- current status
- 1.1 million ag credit guarantee projects as of 30 June 2024
- balance of C¥395 bn
- 1.1 million ag credit guarantee projects as of 30 June 2024
- next steps
- increased support for new agricultural business models
- improved credit guarantees for major crops
- including grains and soybeans
- current status
- implementation of interest subsidy policies
- equipment upgrade support
- 1.5 percentage point interest subsidy on loans for equipment upgrades
- central government investment of C¥20 bn
- expected to generate over C¥6.6 tn in loans
- supporting ag equipment updates and tech improvements
- 1.5 percentage point interest subsidy on loans for equipment upgrades
- high-standard farmland loans
- loan promotion initiatives to enhance agricultural infrastructure
- equipment upgrade support