The "price insurance" of crops is guaranteed by farmers' profits.

"if the insurance premium of more than 20 yuan per mu can guarantee the benefit of growing grain, I am certainly willing to pay it." The one who said this was Liu Jianlin, a big grain grower in Xueyan Town, Wujin District, Changzhou City. this year, he planted more than 600 mu of rice, half of the plots produced more than 650 kilograms of rice per mu, and the other half of the plots were not harvested in time because of overcast and rainy weather, the yield per mu was only 450 kilograms. Moreover, the price of rice this year is 0.46 yuan lower than that of last year, so the benefit of growing grain is much worse than in previous years.

The insurance premium mentioned by Liu Jianlin is actually the core of the rural reform experiment in this area-- using insurance to support the target price reform.

Wujin District is the second batch of national rural reform experimental areas, undertaking two reform experimental tasks, one of which is to carry out the pilot reform of agricultural product target price insurance from this year, which is an important part of this round of experiments. Wujin District chose real estate Cuiguan pear and rice as the carrier of agricultural product target price reform, and rice target price is the top priority, bearing the important task of the whole province and even the national grain product target price pilot. On the 18th, the Agriculture and Industry Office of the Wujin District CPC Committee, which undertook the pilot project, held a discussion meeting on the target price insurance scheme for agricultural products in Ningxia. Experts at the meeting believed that Wujin's pilot scheme was basically mature and worth popularizing.

Starting from this year's rice harvest, the rice target price reform experiment in Wujin District also began to run at the same time. Ling Guangyao, deputy secretary of the district party committee, said that more than 2000 mu of rice from Qianhuang Town, Lijia Town, and Xueyan Town were selected as pilot areas in the district. The growers were family farms, cooperatives, and other new agricultural producers, planting more than 100 mu of rice in succession, and the varieties planted were qualified varieties approved by government departments. According to different fields and the average yield of rice in the previous three years, the target price is divided into 1200 yuan and 1500 yuan per mu. According to this target price, grain farmers can have reasonable profit space. If the output value per mu does not reach this amount, it will be made up; if it exceeds it, it will not enjoy the subsidy policy.

If the output falls short of the target price, who will make up for it? Xu Qinfeng, director of the Agriculture and Industry Office of the Wujin District CPC Committee, said that they brought in insurance companies to participate, and the Agriculture and Industry Office and Jiangsu Branch of China people's property Insurance Co., Ltd. jointly formulated insurance clauses. The two target prices are based on the delivery prices of japonica rice in November in the first two years of the Zhengzhou Commodity Exchange. If the output per mu does not reach these two levels, it will be made up by the insurance company. Of course, the premise is that you must take out insurance. According to the investigation, the premium determined is 6%, and the premiums of the two target price grades are 90 yuan and 72 yuan per mu per year, respectively. 70% of the premium is subsidized by the government, and the farmers themselves bear 30%, that is, 27 yuan and 21.6 yuan per mu per year.

Are farmers willing to pay so much premium? "personally, I'm sure I will." Li Chen, head of the Junchen Agricultural Cooperative in Qianhuang Town, said that his cooperative was listed as a pilot unit with a target price this year, and his grain acreage was 292 mu. Over the past 20 years, he has experienced the increase and decrease of grain production and the fluctuation of prices. In most years, he makes money and sometimes loses money when growing grain. If he can wear such a "safety lock", of course he will. He calculated that according to the target price of 1500 yuan, excluding land transfer costs, production costs, and insurance premiums, the profit margin was indeed relatively small; in a normal year, if grain prices no longer decline, the output value per mu would be at least 1700 yuan. But who knows if there will be natural disasters and whether food prices will continue to fall? He said he had benefited from the insurance: in addition to growing grain, he also planted 50 mu of grapes. When the grapes began to hang fruit in the early summer of this year, there was a hail and the grapes were basically out of harvest. However, he was previously insured and received a compensation of 720 yuan per mu, while if the grape was destroyed by natural disasters during ripening period, the compensation amount was 2000 yuan per mu. He believes that the risk of growing grain is actually quite great. If you buy insurance, you can at least keep your capital and small profits. He will certainly be willing to take part in the insurance and will mobilize members of the cooperative to participate.

There is another question: what if, after someone is insured, the crops will no longer be managed as carefully as in the past, resulting in artificially reduced production? "this is actually moral hazard in the insurance business." Hu Shengxiang, senior business director of the Agricultural Insurance Division of PICC Jiangsu Branch, who participated in the formulation of the target price insurance plan, said that the insurance clause states that if it is deliberately abandoned or neglected in field management, and due to seed quality problems or improper application of chemical fertilizers and pesticides, the insurer shall not be responsible for compensation. In the future, when this business is promoted, the grain yield per mu will be determined on the basis of the village, so that the individuals who cause the production reduction will not be compensated. On this issue, Li Chen believes that unless they are the black sheep of the family, normal people will not deliberately reduce production. "growing grain and buying insurance is the same as buying insurance when driving. How many people will deliberately crash their car and let the insurance company settle the claim?"

Xu Qinfeng told the reporter that this year is the trial run year of the target price insurance for rice in Wujin District. Due to the continuous overcast and rainy season this year and the low price of rice, it is estimated that the insurance company will pay an average of 183.3 yuan per mu. But the insurance company is still willing to open up this new business, because they think it is impossible for this to happen every year in the future. This provides the possibility of market-oriented operation for the target price reform. "next year, this reform will be really implemented; when the pilot project is mature, it is expected to be gradually popularized."