A compensation mechanism for large-scale crop yield reduction and total crop failure urgently needs to be established

According to the appraisal, the important reason nearly 10,000 mu of rice in Anhui suffered yield reduction and total crop failure was extreme weather. Although all parties discussed relief plans to reduce farmers' losses, this incident reflects that China's agriculture still has the weak point of depending on the weather. Unpredictable factors leading to large-scale yield reduction are difficult to completely avoid. The importance of establishing crop insurance and a crop variety risk relief mechanism is becoming increasingly prominent.

There has been new progress in the incident of yield reduction and total crop failure of nearly 10,000 mu of rice in Anhui. Recently, Longping High-Tech issued an announcement titled "Explanation Regarding Reports by Some Media," stating that according to public data from the Anhui Provincial Meteorological Center, Anhui Province suffered rare low-temperature and rainy weather from July to August 2014, among which the temperature in Bengbu was the lowest for the same period in half a century. Relevant government departments accordingly issued pest and disease forecasts, and Longping High-Tech also urged agents to send relevant information to farmers. However, due to the impact of the extreme climate of continuous low temperatures and overcast rain, poor control effects, and other reasons, multiple varieties susceptible to rice blast in the above areas experienced yield reduction or total crop failure, including "Liangyou 0293."

The statements in the announcement are basically consistent with the conclusions of on-site field appraisals by the Anhui Provincial Agricultural Commission and other departments. The Agricultural Committee of Wuhe County, Bengbu City, Anhui Province and the Seed Management Station of Huaishang District respectively organized two groups of experts in the autumn of 2014 to conduct two on-site field appraisals of crop seeds. The appraisal conclusion was: the damage in the field was caused by typical neck blast damage; the main reason for the outbreak of the disease was low temperature and continuous overcast rain during the booting and heading stages, the varieties themselves being highly susceptible to rice blast, and inadequate timely preventive measures.

Peng Guangjian, executive president of Longping High-Tech, said that although the company's "Liangyou 0293" product quality meets national standards, in view of the fact that some planting farmers in the Bengbu area of Anhui suffered varying degrees of economic loss in 2014 due to extreme climate, the company will stop selling "Liangyou 0293." At the same time, it will continue to actively communicate with representatives of affected farmers, dealers and agricultural management departments to explore relief plans as much as possible and implement them in stages and batches. The company plans to establish a post-disaster relief fund for the seed industry, extracting a certain proportion of funds from annual profits into the fund to provide relief to farmers suffering from natural disasters.

This announcement is still far from being the end of the incident. Although this is an agricultural disaster event caused by special weather conditions and disease conditions, it reflects the weak nature of China's agriculture in depending on the weather, and once similar incidents occur, farmers are always the biggest victims. Therefore, how to avoid and compensate farmers' losses has prompted reflection in the industry.

The "Seed Law" stipulates that major crop varieties should pass national or provincial approval before promotion and application. Variety approval mainly examines the economic use value of varieties, such as adaptability, high yield and stress resistance, and is organized by the competent approval department, with 3-year trials conducted in different ecological zones nationwide or in individual provinces, autonomous regions and municipalities.

"The variety approval system itself is an expert committee established by the state, with the purpose of checking for farmers and reducing production losses as much as possible. But every variety has its own characteristics, and under special climatic conditions, production losses may occur." A relevant person from the Seed Bureau of the Ministry of Agriculture introduced that in order to prevent agricultural production risks and reduce farmers' losses, agricultural departments have taken the following measures: First, provide risk warnings during variety approval. For example, the approval announcement of "Liangyou 0293" clearly stated that "this variety is highly susceptible to rice blast and is suitable for planting in areas where rice blast occurs lightly." Second, once production losses occur, agricultural departments will organize experts in seeds, plant protection, cultivation, soil and fertilizer, and other fields to conduct on-site appraisal of field losses, determine the causes, and organize consultation and handling. Third, for varieties found to have obvious defects during production, implement variety withdrawal.

The incident of yield reduction and total crop failure of 10,000 mu of rice highlights the necessity and importance of promoting crop insurance. Information from Anhui agricultural departments shows that claims from Anhui Guoyuan Agricultural Insurance Company were basically in place before the Spring Festival this year. The claim amount for the total crop failure of "Liangyou 0293" rice seed this time was more than 200 yuan per mu, while for yield reduction it depended on the situation, with compensation amounts ranging from several tens of yuan to more than 100 yuan.

"There is a need for rational thinking about how to establish a variety risk relief mechanism, one that both protects farmers' interests and allows seed companies to dare to innovate. We cannot simply negate everything as soon as a variety has a problem." Song Min, director of the National Seed Industry Scientific and Technological Achievement Property Rights Trading Center, suggested that a mandatory insurance system for the promotion of new varieties should be established. Premiums could be considered to be borne by enterprises and subsidized by the government. Insurance companies could determine premiums by referring to the method of compulsory traffic accident liability insurance, and gradually increase premiums year by year for enterprises with many accidents, enhancing enterprises' awareness of the quality of their own varieties. The establishment of an insurance relief mechanism is a major reform in variety management extending from pre-event prevention gradually to post-event relief. Establishing a mechanism that allows trial and error can better tap the potential of varieties.