A New Revolution in Rice Insurance: Adopting "Harvest-Area-Based Claims," Premiums Under 1,000 Yuan per Hectare, Payouts Whenever Production Falls Below the Guaranteed Harvest
After the high-grafted pear, mango and aquaculture, the Agriculture and Food Agency recently partnered with Fubon Insurance Company to further expand the crop insurance scope to "rice," with the Council of Agriculture paying 50% of the premium; farmers need to pay a minimum of only 10% of the insurance premium, about less than 1,000 yuan per hectare to be eligible for claims. Among this, the Agriculture and Food Agency emphasized that the biggest difference from other crop insurance this time is the adoption of "harvest-type claims," meaning that when disaster damage occurs there is no need for individual damage assessment; as long as it is calculated according to the "regional concept" of the "difference between the harvest volume of the entire township and the guaranteed harvest volume," the cost claim for the difference can be obtained. This insurance is expected to accept applications until the end of July, and farmers are encouraged to participate actively.
Agriculture and Food Agency Deputy Director-General Zhuang Laoda gave a trial calculation with an actual example: taking the second rice crop as an example, assuming that the average rice harvest per hectare in a township in Taoyuan is 7,000 kilograms, the guaranteed harvest volume would be set at 5,600 kilograms. If a natural disaster causes the actual harvest volume to be 5,000 kilograms, which is 600 kilograms lower than the guaranteed harvest volume, then it would be calculated using the guidance purchase price of 23 yuan per kilogram; the claim amount per hectare would be 13,800 yuan, while farmers would only need to pay less than 500 yuan in premiums.
Agriculture and Food Agency: Rice is easily affected by natural disasters, and "regional claims" are beneficial to farmers
Regarding the expansion of crop insurance to rice, Agriculture and Food Agency Deputy Director-General Zhuang Laoda pointed out that rice is the industry with the largest planted area and the greatest number of farming households in the country. Because its growth period is long and it is cultivated in the open air, it is easily affected by weather and environmental conditions in terms of harvest. In addition, global climate change has led to increasing frequency and intensity of extreme weather, and disaster and disease risks are difficult to predict. Therefore, rice has been included as one of the areas for promoting crop insurance. The Council of Agriculture also first bears half of the premium to reduce the burden on farmers; farmers need to pay a minimum of only 10% of the insurance premium, and whether the remaining 40% is topped up on the premium is then decided by local governments.
As for why rice insurance adopts "regional claims," Zhuang Laoda explained that it is because the rice planting area is vast. In disaster damage determination, if each case were checked one by one through on-site surveys, the operational process could be time-consuming. In addition, after rice crops suffer disaster, there will be subsequent heading and other "delayed disaster damage," making determination difficult. Therefore, the overall disaster situation of the township is used as the basis for judgment, rather than case-by-case on-site survey determination.
In addition, regarding claim details, Zhuang pointed out that it would be calculated based on the difference between the township's "guaranteed harvest volume (that is, the average production per hectare of rice in the township over the past five years multiplied by 0.8)" and the "actual harvest volume." If the actual harvest volume is lower than the guaranteed harvest volume, the claim mechanism will be activated, allowing farmers in the township to obtain claims.
Rice insurance and "natural disaster relief funds" can be implemented in parallel
In addition, the Agriculture and Food Agency also emphasized that rice insurance can be implemented in parallel with the current "natural disaster relief funds." During the pilot period of rice insurance, if a natural disaster occurs, natural disaster relief can still be claimed in the same way. If a severe natural disaster causes a sharp reduction in production, or pest and disease impacts on output, or other parts that disaster relief cannot cover, losses can be reduced by participating in rice insurance. The insurance currently launched is mainly for the second rice crop, with applications accepted until the end of July. Farmers who are interested can promptly go to their local farmers' association or Fubon Insurance Company's service locations in various places to inquire about insurance matters.
Farmers: Tenant farmers face many difficulties, and the problem of no lease contract needs to be resolved
Regarding the launch of rice insurance, a farmer surnamed Sun in Yunlin pointed out that for one jia of land with two rice crops a year, after deducting costs he earns only more than 100,000 yuan, and insurance is an additional expense, so he is not optimistic. In addition, some farmers mentioned the fundamental issue of the "land use consent form." At present, landlords and farmers are still mostly limited to oral agreements. If actual proof of cultivation cannot be obtained, it is simply impossible to insure. If insurance is successfully obtained, there may still be the issue of benefit distribution between landlord and farmer to resolve. They hope the government can think more comprehensively.