Agricultural disaster insurance will soon be available in at least 200 of China’s grain-producing counties, the Ministry of Finance has said.
The scheme is geared towards improving these areas’ ability to counter the effects of natural disasters on crops.
The 200 pilot counties are primarily engaged in planting rice, wheat and corn. They are scattered across 13 of the key grain-producing provinces, including top three producers, Heilongjiang, Henan and Shandong.
A wider coverage and improvement of compensation standards for farmers, especially those with relatively big grain cultivation operations, are two of the main goals of the pilot projects.
In particular, the ministry called on the local governments to explore customised insurance for farmers.
Since most of the financial burden and post-disaster reconstruction is shouldered by the government, insurance is seen as an important tool to help the national government save costs.