As an innovative measure for my country's capital market to serve "Sannong" in recent years, "Insurance + Futures" has been written into the Central No. 1 document for seven consecutive years since its first launch in 2016. Since 2016, ZCE has actively led and guided futures companies and other institutions to continuously carry out the pilot projects of "insurance + futures", with a total investment of nearly 317 million yuan, and supported the development of 127 "insurance + futures" pilot projects in the main production areas of related varieties. , providing a risk protection amount of nearly 12 billion yuan for 250,000 farmers. The pilot construction has achieved remarkable results, and the demonstration driving effect has become increasingly apparent. From now on, this newspaper will launch a series of reports on the fruitful tour exhibition of the "insurance + futures" landing project of Zhengzhou Commodity Exchange, so stay tuned.
Red dates are known as the "King of Fruits". In the southwest of Xinjiang, there is a small town filled with a strong jujube fragrance, which is Maigaiti County. This county seat on the edge of the Taklimakan Desert is home to 13 ethnic groups. In 2021, the total output of 560,000 mu of red dates in Maigaiti County will reach 260,000 tons, accounting for about 20% of the country's total output. It is a veritable "Jujube Capital". In recent years, with the gradual development of the jujube futures market, especially the success of the jujube “insurance + futures” project in Maigaiti County, the jujube industry, which local farmers depend on for a living, has a financial means to resist the risk of market price fluctuations. . And futures, a financial term that may only be explained clearly by professionals, has now become a idiom that many jujube farmers often recite in McGatti County.
The problem of poor harvest in a good year needs to be solved urgently
Walking into Haman Kuoyidi Village, Yangtake Township, Maigaiti County, neat rows of red jujube trees stand in the field. It is now the dormant period of jujube trees. Aimier Tumur, a 45-year-old villager, is pruning his 15-mu jujube garden in winter and applying basic fertilizers to prepare for the upcoming budding period of jujube trees.
"I started jujube cultivation in 2010. There are three people in my family. My wife and I have been taking care of this jujube garden. The jujubes we grow are so sweet!" he said cheerfully. Maigaiti red jujube fruit is plump, delicate in flesh, sweet and mellow, and rich in nutrients. This is the taste of Maigaiti's water, soil, climate, and the hard work and sweat of Maigaiti people.
In 2010, the currency price of red dates purchased in McGaiti County was 15-16 yuan/kg, the shipping price for the same grade of merchants was about 32 yuan/kg, and the selling price of some enterprises could reach 35-38 yuan/kg. The huge planting income opened the prelude to the expansion of local red dates. The county began to promote jujube planting technology on a large scale and carried out agricultural planting technology training, and Amer also joined the jujube planting army at this time. That year, the income of red dates was more than 20,000 yuan. Thinking of the good years in the past, he was overjoyed.
Unexpectedly, the good times will not last long. With the continuous expansion of the planting area of jujubes in Xinjiang and the continuous improvement of planting technology in recent years, the production of jujubes has increased year by year, and the price of jujubes has been weakened year by year. Since 2015, the price of red dates has been in a continuous downturn, and the price is only 6-8 yuan/kg.
"The production of red dates has gone up, but the price has come down, and the cost of planting has skyrocketed, such as labor costs, fertilizers, etc. are all rising. I remember that in 2018, the cost of planting one mu of land was more than 3,200 yuan, and the average yield of jujube trees in my family was per mu. 450 kilograms, one kilogram only sells for 6.5 yuan, not only can’t make any money after a year of hard work, but also a net loss of 300 yuan per mu.” Aimier said helplessly. He once planned to transfer the 15 acres of jujube orchards out to work, but in the face of the jujube trees that he has been caring for for many years, he has deep reluctance and more unwillingness.
Aimair's experience is just a microcosm of the date farmers in McGatti County. Due to changes in industrial structure and consumption environment, the price fluctuation of red dates continues to increase, which has a great impact on local people's livelihood and economic development. How to help farmers resist market risks is an urgent problem for the local jujube industry.
In April 2019, jujube futures were successfully listed on the Zhengzhou Commodity Exchange, which brought a huge turning point for solving the dilemma of the jujube industry in Maigaiti County, and provided new ideas for solving the jujube problem by market-oriented means.
Open up a new path for jujube farmers to stabilize and increase income
The golden autumn and September are the harvest season of Magiti. The jujube orchard is full of fruits, and with a flick of the ground, jujubes are falling all over the ground, which is a good harvest scene. One day at the end of September 2021, the hall of the county guest house was very lively. With the guidance and support of the Zhengshang Office, the Shandong Provincial Aid to Xinjiang Work Headquarters and the Maigaiti County Party Committee, the launching ceremony of the red jujube "insurance + futures" county coverage project is here. held with grandeur.
"Insurance + Futures" is an insurance product that uses the price discovery and risk management functions of the futures market to transfer the price fluctuation risk of red dates to the futures market for hedging. As an innovative measure in my country's capital market to serve "agriculture, rural areas and farmers" in recent years, "insurance + futures" can effectively help jujube farmers stabilize and increase their income, relieve their worries, and provide a new path for the sustainable development of Xinjiang's jujube industry.
So, why don't jujube farmers directly use futures tools to hedge their risks?
"Compared to directly participating in the futures market, insurance products are much more familiar to jujube farmers, and they do not need to consider futures rules such as margin occupation and forced liquidation, which is easier for jujube farmers to understand and accept." Deputy Secretary of the Party Committee of Zhongtai Futures, Li Xuekui, chairman of Luzheng Capital, explained to the Futures Daily reporter.
Insurance has the advantage of people's trust and coverage in rural areas, while futures have market-based price discovery and risk hedging mechanisms. Through the cross-border integration of the two, the "insurance + futures" model not only provides insurance companies with an innovative way to transfer risks in the capital market, and achieves the purpose of "reinsurance", but also gives full play to the professional risk management capabilities of futures companies. Open up the "last mile" of futures services for "agriculture, rural areas and farmers".
Since its first launch in 2016, "Insurance + Futures" has been written into the Central No. 1 document for seven consecutive years, fully proving its positive role in helping farmers ensure stable income and serving rural revitalization. By participating in the "insurance + futures" project, the jujube farmers get rid of the anxiety of "relying on the sky for food and not being able to sell at a high price in a good year".
"Insurance + futures" supporting borders and helping farmers bear fruit
In 2020, ZCE supported Xinjiang's first red jujube "insurance + futures" county coverage project to settle in Maigaiti County. This is not only another effective attempt to innovate financial services for "agriculture, rural areas, and farmers", but also an important step in the development of the Maigaiti agricultural industry. a big thing. The final project achieved effective compensation, effectively guaranteed the planting income of jujube farmers, and was highly recognized by the local government and jujube farmers.
Amel still remembers the scene of buying insurance for red dates for the first time. "This is the first time that I have enjoyed income protection since planting dates for so many years. Now that I have jujube 'insurance + futures', I am no longer afraid of falling prices!" he said sincerely.
The No. 1 Central Document in 2021 proposes to play the role of "insurance + futures" in serving the development of rural industries. In June 2021, ZCE issued the "Notice on Launching the Pilot Construction of "Insurance + Futures" in 2021, and continued to support futures companies to carry out the "insurance + futures" county coverage project of red dates in Maigaiti County.
As the futures company leading the organization of the project declaration work, Zhongtai Futures attaches great importance to this, and immediately established a special working group to fully exchange opinions with the local government on the "Megiti jujube 'insurance + futures' project", and actively coordinate the participation of all parties involved. He successfully reached a cooperation intention with China Insurance Xinjiang Branch and 3 futures companies, and submitted the "Xinjiang Maigaiti Red Date "Insurance + Futures" County Coverage Project Plan to Zhengzhou Commodity Exchange. The project was finally approved by ZCE at the end of July 2021, and the order was successfully issued at the end of September.
The project invested a total insurance premium of more than 20 million yuan and a total insured amount of 334 million yuan, providing price risk protection for about 50,000 mu of red dates of more than 4,000 jujube farmers in Maigaiti. According to the project requirements, the insurance premium per mu is 414.2 yuan, and the jujube farmers only need to pay 32 yuan per mu, and the rest will be subsidized by the Zhengzhou Chamber of Commerce and financial funds, so as to truly realize the "big guarantee" with "small investment".
Amel, who had tasted the sweetness, learned that he could buy insurance for red dates again, and was the first to sign up and pay the fee. "Everyone in Murakami is rushing to buy it now, which is indeed a good thing," Amer said with a thumbs up happily, "Although I can't tell the true meaning of 'insurance + futures', but now when it comes to red dates' "Insurance + futures", everyone can't close their mouths with laughter! Even if the market price falls, we are not afraid, there is an insurance company to compensate, our date farmers are relieved!"
At the end of December 2021, the project was successfully completed. According to the standard of 138.1 yuan per mu, the insured farmers received a total of 6.683 million yuan in compensation.
Under the leadership of ZCE, the project has mobilized more financial power and financial funds to participate in the "Sannong" service. ZCE supported 10 million yuan, Shandong Provincial Aid to Xinjiang Work Headquarters contributed 4 million yuan, and Zhongtai Futures and other participating institutions jointly raised funds of 4.5 million yuan. A good situation of "Leveraging the power of finance to promote rural revitalization".
