On July 11, Chongzhou Yangliu Farmers Professional Cooperative, Chongzhou Jixian Tiandikuan Family Farm and other large rice growers in Chongzhou City signed a rice income insurance policy with Jintai Insurance Co., Ltd. Sichuan Branch. The first batch of insurance is for 6620 acres of rice and provides a double risk protection with 8.606 million yuan for planting production and prices of rice. It is also the first batch of food crop income insurance policies signed in our province. At the same time, these large rice growers also signed loan intent credit letters with the Sichuan Branch of the Postal Savings Bank. This move marks the official launch of the pilot project of comprehensive financial service innovation for the province’s “Loan for Guaranteeing Grain and Benefiting Farmers”.

　　This project, promoted by the Provincial Department of Agriculture, is a comprehensive financial support for rice income insurance initiated by the government, banks and insurance. The government supports rice growers to insure their rice income by subsidizing premiums and financial interest subsidies. The bank provides low-interest credit support for rice growers. The two-year pilot will be conducted in three grain-producing counties (cities), namely Chongzhou City, Santai County and Linshui County. Rice growers participating in the insurance pay 20% of the insurance premiums, and the Ministry of Agriculture and Rural Affairs and the pilot areas will bear 80% of it by financial subsidies to of the premiums. The Sichuan Branch of Postal Savings Bank will provide rice growers with bank loans with interest rate less than 6%, so as to support them to carry out moderate scale operations and develop high-quality rice. The implementation of the project aims to explore a modern grain industry system that adapts to the realities of our province and grain production and better safeguard food security and increase farmers’ income.

　　According to reports, the rice income insurance under the “Loan for Guaranteeing Grain and Benefiting Farmers” project covers not only all the direct materialization costs of rice planting, but also part of the labor cost and land rent cost. On the basis of traditional rice planting insurance, it has double-factor setting for claim of the yield loss and price drop loss. During the rice market, the insurance company will settle the claim when one or two of the market purchase price average and the actual mu yield average are lower than the agreed value.