Design Of Wheat Income Insurance Products In Henan Province

Wheat is one of the main crops and main rations of urban and rural residents in Henan Province,the fluctuation of production and price has a great impact on the income of wheat growers.For a long time,the government has paid great attention to preventing wheat production risks and introduced wheat production insurance to reduce the yield risk of wheat growers.However,with the development of agricultural marketization and scale,traditional agricultural production insurance can no longer meet the needs of farmers.At the same time,as the country's purchase price of food crops continues to open(the state canceled the temporary purchase of corn and lowered the minimum purchase price of rice in 2016,the minimum purchase price of wheat was lowered in 2018),Price risks will have an increasing impact on wheat growers.Although China's current price support policy has played a role in stable production,many problems have arisen,In order to avoid the future adjustment of agricultural product price support policies to damage the interests of farmers,the “Central No.1” document proposes to explore the establishment of a target price system for agricultural products based on market prices,To this end,China's insurance companies have developed various agricultural product price index insurance to deal with the price risks faced by agricultural products.However,for staple food crops such as wheat,price index insurance is difficult to become the mainstream product form of agricultural insurance because of systemic risks,and agricultural income insurance as a kind of policy agricultural insurance can simultaneously guarantee the yield and price risks of growers,it can also use the negative correlation between production and price to avoid systemic risks.Income insurance is in line with the reform of the pricing mechanism of agricultural products market as stipulated in the “Central No.1” document in recent years,and can become the mainstream product of agricultural insurance in China in the future.Based on this,this paper firstly develops wheat income insurance products from Henan Province from the needs of ordinary farmers and new agricultural management entities,the inevitable requirements of ensuring national food security in the new era,and the practical needs of the market in the formation mechanism of food prices;From the rich wheat yield and price data of Henan,the status quo of agricultural insurance development in Henan Province,the standardized wheat futures price data and the relevant policies of the government in recent years,the feasibility of carrying out wheat income insurance products in Henan Province is theoretically analyzed.Secondly,based on the overview of the development of agricultural income insurance products in the United States and the product system,the development status of domestic agricultural product price insurance products and the terms of the contract,summarize the successful experience of agricultural insurance at home and abroad,and design the Henan wheat income insurance products from the aspects of insurance subject,insurance period,insurance liability,insurance amount,insurance rate and compensation treatment,and form the complete wheat income insurance contract clause for the first time.In the process of designing insurance amount and insurance premium rate,the information asymmetry theory and non-life insurance actuarial theory are used to design the expected yield,expected price and harvest price,the main ideas and key processes for determining the income insurance rate of wheat are given,and using ARIMA time series analysis method to analyze and forecast the wheat yield data of Henan Province from 1978 to 2017,and calculate the insurance yield of wheat income insurance in 2018,the insurance price and harvest price were designed using the 2012-2018 wheat June and September futures contract transaction price data,and calculated the insurance price of 2018 wheat income insurance,the amount of insurance per mu and the amount of compensation per mu.Finally,this paper makes predictions and puts forward corresponding suggestions for the dilemma that may be encountered in the pilot project of Henan wheat income insurance products.The expected dilemma has three aspects: imperfect futures market and data collection cause product deviation from reality,the lack of coordination between the various departments in Henan Province has led to a slow implementation of the product,the unreasonable selection of the wheat income insurance pilot area has put the product into an unfavorable situation.Corresponding suggestions: continuously improve the futures market and agricultural information collection database,strengthen the coordination between various departments in Henan Province,and rationally select the wheat income insurance pilot area.