A New attempt to increase Farmers' income by "Futures + Insurance"

As same-season crops, soybean and corn have a typical land competition relationship. Which crop can bring more benefits and greater production benefits to farmers has always been a question of farmers 'trade-off.

In the middle and late August, China Securities News reporters followed the Harbin Agricultural Products Investigation Group jointly organized by Beijing Futures Chamber of Commerce and Nanhua Futures Company to conduct on-the-spot investigation on the planting area, weather and growth conditions of soybeans and corn in Harbin and other regions. The reporter found that the planting area of soybeans and corn has changed, the current corn inventory is still large, farmers are hesitant to sell corn, grain buyers are unwilling to take risks, and some futures companies have launched a new attempt of "futures + insurance", which has mobilized the production enthusiasm of growers and is conducive to the adjustment of local crop planting structure.

It is difficult to find soybeans in the main soybean producing areas of Northeast China

On August 20, the delegation visited farms, traders and agricultural products deep processing enterprises in Helen City, Bei 'an City and Harbin City for six consecutive times, including "Internet + Agriculture" ten thousand mu selenium-rich organic coarse grain standard demonstration base in Heilongjiang Province, Hongxing Farm, Jiusan Group Harbin Huikang Food Co., Ltd. and Beidahuang Tofu Production Base.

Starting from Harbin City, arriving at Bei 'an City via Haihai Suihua City and Helen City, it will drive more than 300 kilometers in 2 days.

Reporters found that along the way sparsely populated, clear sky at a glance, into pieces of crops became the focus of attention, dazzling sunlight through the window made people drowsy, from time to time vehicles whistling past.

However, most of the way is corn field, soybean is rarely seen, which can not help but ask: this is still the world's main soybean production area?

Accompanied by Chen Yingjian, director of Helen City and Helen City Grain Bureau, which is more than 300 kilometers away from Harbin, the delegation came to the "1000-kilometer demonstration zone of modern agriculture in Suihua City" to conduct on-the-spot investigation on the planting and growth of soybeans, and only then did they discover soybeans planted in batches. The soybean growth trend in the demonstration field is good, and the specific data mean value of each aspect is: plant height 100cm, plant node 16, pod number 50, estimated yield per mu 200kg, higher than expected 170kg. Subsequently, the inspection team also randomly sampled nearby soybean fields and found that the soybean's rise was uneven, and the number of pods was mostly between 25 and 40.

Chen Yingjian said that the growth conditions are different, mainly due to the different soybean varieties selected for planting. The demonstration field is selected as "Dongsheng 11", which has higher yield and better lodging resistance. It is understood that at present soybean is in the grain bulging period, more water requirements, and sunny and rainy weather will also have an impact on its growth.

"Chinese soybeans look at Longjiang, Longjiang soybeans look at Helen." Chen Yingjian said that Helen City is known as "the hometown of soybeans". In the first half of the year, agricultural geological survey found that Helen City is located in the whole selenium-rich belt, so "selenium-rich" and "cold black soil" have been the two brand advantages to be explored.

Along the way, Chen Yingjian talked endlessly about the benefits of "selenium-rich" and "non-genetically modified", and pointed to the nearby "Internet + Agriculture" sign and "Solar Energy Traceability System" to describe the future of local agricultural development.

Beidahuang Organic Food and Jiusan Group Non-GMO Soybean Oil are two food brands under Beidahuang Group. Reporters through visits to Helen City agricultural products demonstration belt and red star farm found that in agricultural products planting, the use of non-transgenic seeds, organic fertilizer, artificial weeding, until mature and then through professional processing technology to ensure the quality and safety of products. It is understood that at present, the agricultural products of Beidahuang Group include sauerkraut, miscellaneous grains, soybean oil, drinks and other hundreds of products.

On the way back to Harbin, a heavy rain suddenly fell. Looking at the soybean and corn fields outside the car window, I don't know whether this "timely rain" brought happiness or worry to the farmers.

The general trend of "soybean advance and corn retreat"

It is understood that China has implemented a policy of temporary storage and purchase of agricultural products all the year round. Through direct grain supplement, it has solved the problems of farmers 'difficulty in selling grain and low grain sales, and also ensured farmers' enthusiasm for production. However, the policy of temporary reserve purchase and minimum purchase price implemented all the year round has also cultivated farmers 'dependence on national policies, treating corn planting as hard crops, ignoring the actual planting benefits, and the corn planting area remains high.

The personage inside course of study expresses, temporary reserve corn purchase will disturb the normal mechanism of corn market, for the consideration of guaranteeing national food security, adjust soybean, corn industrial structure is imperative.

Chen Yingjian said that soybean planting area in Helen City increased from 1.65 million mu to 2.2 million mu this year, while corn decreased from 2.2 million mu to 1.55 million mu.

The reporter found that although the planting structure of soybeans and corn has been adjusted, local growers are most concerned about whether the state will cancel the corn purchase policy. Farmers generally have the psychology of "not selling afraid of falling, selling afraid of rising", while grain buyers collectively bear the corn market price, and no one buys corn in the market. In addition, through the visit found that a local storage capacity of 100,000 tons of warehouse has been occupied by corn.

On the afternoon of August 20, at the symposium held by Helen City Municipal Party Committee and Municipal Government, although the grain enterprises and farmers representatives had differences on whether the state would cancel the corn collection and storage policy, they maintained a consistent bearish attitude towards the trend of corn prices in the second half of the year.

Li Yongmin, director of the Green Dahua Research Institute, said that from the current overall economic situation, corn prices lack upward momentum. The long-term implementation of the grain direct subsidy policy by the government has caused too much burden on the state. After the advantages of "futures + insurance" in ensuring farmers 'income and reducing government burden have been verified in developed countries, it is expected that it will be widely used in the future. At this time, corn prices will fall has no dispute, farmers should rush to sell corn as soon as possible before the new grain market, sell a relatively good price, but also through the combination of time and time to obtain higher returns.

"Adjusting the planting structure is a problem that has to be faced now when corn stocks are large and soybean prices are weak." At the symposium, Chen Yingjian repeatedly stressed that it is better to sell well than to plant well. How to help farmers solve the problem of selling grain is the top priority of the current government work. He expects corn production in Helen City to be 850,000 tons this year, while sales of 500,000 tons are the most basic guarantee.

In order to help grain buyers accurately analyze the current situation, he put forward four suggestions to grain buyers: First, grain buyers should not rush to buy grain; Second, to sell fixed production, first sign a contract before purchasing; Moreover, wait until the policy is clear, farmers eager to sell grain when the purchase, it is expected that the best time will be in January to March next year; Finally, it is suggested that we try to do futures, but to control the quota, for the purpose of hedging.

"Futures + Insurance" to Solve Farmers 'Worries

Using "futures + insurance" to serve agriculture, rural areas and farmers is a new topic in the current agricultural and futures markets. The so-called "futures + insurance" simply means that farmers buy insurance from insurance companies, and insurance companies reinsure futures companies.

A staff member of Jiusan Grain and Oil Industry Group Co., Ltd. told China Securities News that at present, Jiusan Group has 12 production subsidiaries in the whole country. Its main products include protein, oil, health food, wild fresh fruit drinks and other nine series of more than 100 kinds of products, mainly refining, processing and packaging the crude oil roughly processed by other factories. The price products of Jiusan Group can be seen in supermarkets all over the country.

He Lin, deputy director of Nanhua Futures Agricultural Products R & D Center, said that from the current point of view, Heilongjiang corn production reduction area is less than expected, this year's estimated output is about 31.7 million tons, minus the industrial, feed consumption, about 18 million tons, insufficient digestion capacity is the biggest problem Heilongjiang faces, is expected to maintain this status quo in the next year or two. It is advisable to do a good job in deep processing of agricultural products, extend the industrial chain, and realize the perfect connection from planting to digestion and then to sales, which can not only solve the digestion problem downstream of agricultural products, but also add channels for farmers to increase income. In addition, financial instruments can be used to control the risks of agricultural production.

In the case of soybeans, if a farmer fears that the price of soybeans will fall, he can go to an insurance company and buy a price insurance. If the price of soybeans falls during the insurance period, the insurance company will compensate the farmer for the loss of income caused by the fall of soybeans when the insurance is implemented. The compensation amount of this part of insurance is the compensation for reinsurance purchased from futures companies before. Futures companies will also earn profits by shorting in the futures market to hedge the risks brought by the fall in soybean spot prices.

He Lin said that at present, Nanhua Futures is carrying out pilot work of "futures + agriculture" with Sunshine Agriculture Mutual Insurance. Taking the realization of farmers 'maximum interests as the starting point, the pilot site is Zhao Guang Farm with good mechanization degree of agricultural reclamation. The quantity is 10,000 tons of domestic soybeans. The execution price is 3800 yuan/ton of soybean futures 1701 contract. The settlement method is the average price of the settlement price in September and October. The pilot time is half a year. Through continuous cooperation with farmers, farms, The insurance company carries out communication and publicity. At present, the work of "futures + insurance" is relatively smooth. It is expected that after the pilot work is completed in November, the overall work will be summarized and the option design will be optimized and innovated.

Analysts said that "futures + insurance" is to create a win-win situation, farmers, futures companies, insurance companies can benefit from it. Soybean growers can get protection on soybean price, thus reducing the risk of price fluctuation in soybean market, while futures companies and insurance companies can also obtain certain return profits by providing services. At present, the new attempt of "futures + insurance" launched by Nanhua Futures and Sunshine Agricultural Insurance for soybean will undoubtedly mobilize the production enthusiasm of soybean growers and accelerate the pace of planting structure adjustment in Heilongjiang Province.