What Is Crop Insurance?

Crop insurance is targeted at various crops grown artificially. Includes food crop insurance (mainly covering cereal, wheat, potato and legume crops), cash crop insurance (mainly covering cotton, hemp, oil, sugar and other sugar, tobacco and medicinal crops), horticultural crop insurance (Mainly covers crops such as fruits, vegetables and flowers). Crop insurance can cover only one risk, or mixed and all risks. On the subject of insurance, it can be the insurance of the output value of the crops (that is, 5 to 7 of the harvest value of the average annual output in the past three years becomes the insurance amount. Due to the damage caused by the crops, the insured part will be compensated by the insurance company.) It can also be insurance for crop production costs (with the production cost of planting crops as the subject of insurance, the insurance company is responsible for compensating the actual cost losses after the disaster of the crops within the range of planting cost fees). ^[1]

Crop insurance

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Crop insurance is targeted at various crops grown artificially. Includes food crop insurance (mainly covering cereal, wheat, potato and legume crops), cash crop insurance (mainly covering cotton, hemp, oil, sugar and other sugar, tobacco and medicinal crops), horticultural crop insurance (Mainly covers crops such as fruits, vegetables and flowers). Crop insurance can cover only one risk, or mixed and all risks. On the subject of insurance, it can be the insurance of the output value of the crops (that is, 5 to 7 of the harvest value of the average annual output in the past three years becomes the insurance amount. Due to the damage caused by the crops, the insured part will be compensated by the insurance company.) It can also be insurance for crop production costs (with the production cost of planting crops as the subject of insurance, the insurance company is responsible for compensating the actual cost losses after the disaster of the crops within the range of planting cost fees). ^[1]

During crop growth, a considerable part of its harvest depends on the soil environment and natural conditions, the crop's resistance to natural disasters, and the cultivation and management of producers. Therefore, when the value of the harvest is used as the object of insurance, the insured should be left with a certain amount of self-insurance to promote intensive cultivation and strengthen crop management. If the

Types of crop insurance insurance

Crops can be divided into two categories: food crops and cash crops. Similarly, crop insurance is classified by subject matter, including food crop insurance and cash crop insurance.

Subject crops

Grain crop insurance is mainly based on cereal crops, potato crops and legumes; cash crop insurance is mainly based on fiber crops, oil crops, sugar crops, hobby crops, and fruits and vegetables.

Crop insurance underwriting liability

The risk loss of crops can be divided into a reduction in the number of crops, a decline in crop quality, and a decline in crop prices. Generally speaking, crop insurance only covers the loss of crop quantity and quality, and does not bear the price risk.

How to determine the amount of crop insurance insurance

There are two ways to determine the amount of crop insurance in China, one is the crop harvest insurance, and the other is the crop cost insurance. The former takes the expected harvest of crops as the value of the insurance target, and then determines the insurance amount accordingly, similar to the foreign expected harvest system. The latter is based on the cost of crops as the value of the insurance target, and the insurance amount is determined based on this, similar to the foreign production cost insurance system.

Crop insurance

The method adopted abroad is to implement a proportional liability system, and determine the compensation amount according to the ratio of the insurance amount to the insurance value. This method is also used in China.

The plantation industry generally refers to the production industry that cultivates plants to obtain products. The broad planting industry includes two parts: crop cultivation and forest fruit production. The production of the planting industry is the basic source of human living materials. Some of the produced food, oil, sugar, vegetables, wood and fruits are used as living materials, and some are used as industrial raw materials. Plantation production uses natural light, heat, water, and air conditions on the land to obtain products through plant growth functions to convert energy. Therefore, the plantation industry is deeply affected by meteorological hazards in nature, and accidents such as pests and fires Threat of accident. Plantation insurance, as a risk management method that can diversify risks and provide economic compensation in a timely manner after the disaster, is increasingly recognized by people and has played an increasingly important role. Plantation insurance generally includes crop insurance and forest insurance.

(I) Crop Insurance

Crops refer to artificially cultivated plants, including food crops, cash crops, green manure and forage crops. According to the different growth stages of the above crops, crop insurance can be specifically divided into crop insurance in the growing period and crop insurance in the harvest period.

1. Growing crop insurance. Growing crop insurance is based on the insurance of the crops in the process of growing from seedling to harvest. At present, China's growing crop insurance includes: wheat plantation insurance, rice plantation insurance, corn plantation insurance, cotton plantation insurance, tobacco leaf plantation insurance, sugar cane plantation insurance, etc.

2. Harvest crop insurance. Harvest crop insurance is a type of insurance that covers the loss of crop products due to floods, floods, storms and other disasters during the drying, rolling, threshing, and baking processes of crops after harvest, such as wheat field summer grain fire insurance, Flue-cured tobacco flood insurance, etc.