As a traditional Chinese saying goes, “Farmers mainly depend on heaven or the weather for food.” Areas hit by severe disasters can see their whole year of hard work swept away. To combat the winds of fate, the upcoming policy to establish an agricultural insurance system in piloting regions will soon help farmers to tackle the uncertainty…Full Article: ECNS.cn May 2017

Key Point

  • In April 2017, China’s State Council decided to establish an agriculture insurance pilot program in 13 major grain-producing provinces such as Anhui and Hubei. The government-backed insurance would financially protect farmers from natural disasters.

ChinaAg Comments

  • In December 2016, Alibaba’s Ant Financial became the second largest shareholder in China’s CFPA Microfinance Management Company. Ant Financial will also set up a joint-venture with China United Insurance Holding that will support the country’s agriculture sector.
  • In March 2015, it was reported that agricultural insurance covered 69% of corn and rice crops, and 49% of wheat crops in China.
  • In 2013, China’s Ministry of Finance allocated CNY 12.69 billion (~US$2.04 billion) on agricultural insurance subsidies.
  • In March 2013, China had roughly 20 agricultural insurance service providers. Previously, this number had been as low as six companies.
  • In 2012, China’s agricultural insurance premiums totaled CNY 24.1 billion (US$3.87 billion).
  • From 2007 (year of initial pilot) to 2011, the Chinese government spent CNY 26.4 billion (US$423 million) on agricultural insurance subsidies for farmers.

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