Zhengzhou Commodity Exchange’s “Insurance + Futures” pilot program will start in 2023
Continue to serve agricultural development and rural revitalization
The reporter learned that in order to implement the spirit of the “No. 1 Central Document” in 2023, serve to comprehensively promote the national strategy of rural revitalization, and help build an agricultural power, in accordance with the relevant work arrangements of the China Securities Regulatory Commission, on April 21, the Zhengzhou Commodity Exchange ( (hereinafter referred to as the Zhengzhou Commercial Exchange) issued the “Notice on Launching the “Insurance + Futures” Pilot Work in 2023″ and continued to carry out the “Insurance + Futures” pilot work in 2023 with the theme of “Worry-Free Agricultural Insurance”.
It is understood that since the launch of the “insurance + futures” pilot project in 2016, the Zhengzhou Commodity Exchange has supported a total of 148 “insurance + futures” pilot projects, which have achieved good demonstration effects and social impact, and are helping farmers resist prices. It has played a positive role in reducing fluctuation risks and stabilizing planting income.
In 2023, Zhengzhou Commodity Exchange’s “Insurance + Futures” pilot work will continue to be improved and optimized, with three key support directions: first, to consolidate and expand the results of poverty alleviation, and give priority to supporting projects in key rural revitalization counties; second, to Give full play to the role of the futures market in supporting agriculture, and give priority to supporting projects that innovate and optimize the “insurance + futures” model; third, promote the in-depth participation of local governments and give priority to projects with fiscal coordination and linkage. The specific project categories are provincial financial joint projects, county (township) coverage projects and “New Rural Improvement Plan” projects.
The pilot varieties of the county (township) coverage project are apples, red dates, sugar cane, sugar beets, and peanuts. The project’s insurance types include price insurance and income insurance based on the “insurance + futures” model. The pilot areas are the main producing counties of the varieties. The underwriting period for such projects is 3 months, and the insurance target price is flat value or moderately out-of-value. Except for sugar cane insurance, the termination date will be no later than February 28, 2024. , and no later than January 31, 2024 for other varieties. The underwriting period of the income insurance project is reasonably arranged based on the growth cycle of the variety. The settlement price period is 1-2 months. The price end time is consistent with the insurance expiration time. The target income (or its determination method) must be determined in advance. The insurance termination date is not Later than November 30, 2023.
According to the notice, in 2023, the Zhengzhou Commodity Exchange will launch a special project of the “New Farmer Promotion Plan” focusing on new agricultural business entities. The service targets are family farms or members of farmer cooperatives. Family farms must be in the relevant directory system of the agricultural department, and cooperatives must It is a national-level cooperative. The project varieties are apples, red dates, peanuts, sugar cane, and sugar beets. The project insurance is price insurance based on the “insurance + futures” model. There are 8 products in total, and applications can be applied nationwide. The underwriting period for such projects is 2 to 5 months, and the insurance target price should be at par or moderately out of value, and the target price (or its determination method) must be determined in advance. The insurance termination date shall be no later than January 31, 2024. .
Over the years, Zhengzhou Commodity Exchange’s “Insurance + Futures” pilot project has continued to “increase products, expand coverage, innovate, and optimize”, focusing its service targets on households out of poverty and new agricultural business entities, and a two-pronged approach to help rural revitalization. In 2022, Zhengzhou Commodity Exchange will increase the popularization of futures risk management functions and continue to enhance the modern awareness, market awareness and risk awareness of new agricultural business entities. In the peanut project jointly carried out with the Henan Provincial Department of Finance, except for poverty alleviation, the insured targets are all large-scale households with a planting area of more than 10 acres; in the apple project jointly carried out with the Shandong Provincial Department of Agriculture and Rural Affairs, the insured targets are basically family farms , cooperatives, which has effectively promoted the pilot counties to cultivate modern business concepts among new agricultural business entities.
In order to support the development of local advantageous and characteristic industries, Zhengzhou Commodity Exchange plans to jointly carry out projects with relevant departments in five provinces including Henan, Shandong, Liaoning, Guangxi and Hubei in 2023, involving peanuts, apples, sugar cane, cotton and rapeseed, etc. Variety.
It is understood that in 2022, the “Insurance + Futures” pilot project of Zhengzhou Commercial Exchange in conjunction with local government co-construction model has achieved remarkable results, promoting new progress in regular financial support. Zhengzhou Commercial Exchange and provincial government departments such as Henan, Shandong, Guangxi, and Liaoning jointly issued documents to deploy the pilot construction, introduce government funds, strengthen project organization and guarantee, and work together to promote the expansion of the pilot. In addition, the cotton price insurance pilot projects carried out by the Xinjiang Production and Construction Corps, Hubei and other places all use cotton futures prices as the basis for calculating (part of) the insurance settlement price. As the price factor of specialty agricultural product price index insurance, futures prices are increasingly used in new agricultural insurance and have been recognized by local governments and industrial entities.
In order to further encourage project premium sources to receive normalized and institutionalized support, the Zhengzhou Commercial Exchange’s “Insurance + Futures” pilot project in 2023 has made corresponding regulations on the upper limit of the support ratio. Among them, the self-paid premiums paid by insured entities in county (township) coverage projects should not be less than 10% of the project unit’s premium budget, and the proportion of self-paid premiums paid by insured entities in the “New Rural Improvement Plan” project should not be less than 15% of the project unit’s premium budget. %, and encourage qualified regions to appropriately increase their self-payment ratio. The support ratio of Zhengzhou Commercial Exchange shall not exceed 50% of the total premium budget of the project; for projects applied by Yanchang County and Maigaiti County, the upper limit of the exchange’s support ratio shall be 60% of the total premium budget.
It is worth mentioning that in January 2023, the National Rural Revitalization Administration published the “Rural Revitalization Brief””Newspaper – Special Issue on East-West Cooperation and Targeted Assistance” published a special article, introducing that Apple’s “insurance + futures” has explored a path of assistance for Jingning County that is “adapted to local conditions, distinctive themes, financial empowerment, and industrial revitalization.” In February 2023, You Liangying, a representative of the National People’s Congress and one of the “Top Ten Farmers in the Country”, gave a speech on the Alar red date project of Zhengzhou Commodity Exchange at the “Futures Serving the Real Economy and Helping Rural Revitalization” conference held by the Alar Municipal Government and Green Dahua Futures in Beijing. The affirmation means that the project has given jujube farmers a “reassurance”. It can be said that ZCE is based on the futures market and has gathered the joint efforts of many parties to serve agricultural development and rural revitalization through “insurance + futures”, and its results have become increasingly prominent.
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