The Rate Of "Natural Rubber Futures" Dropped To 10% In Baisha County

How does rubber futures affect spot price?

Faced with such a profound professional problem, Lu banglang, a villager in Baoting Li and Miao Autonomous County of Hainan Province, neither cares nor "understands". But it sounds like "tall" rubber futures do have a real connection with him.

In 2018, Baoting, Hainan Province, launched the natural rubber "insurance + futures" targeted poverty alleviation project of the former Institute, covering all the local poor households. According to the actual production cost of natural rubber in Hainan Province, the insurance guarantee price is set, and the price difference is calculated according to the futures market price to compensate the farmers. In that year, Baoting county "lifted the hat from poverty".

On September 3, 2020, in the "gully" of Baoting County, the rubber farmer Lu banglang got up early in the morning to complete the task of tapping a whole day, harvesting 25.584 kg of glue, selling 255.84 yuan.

On the same day, the price of rubber futures decreased by 1.2683%. If put in the usual, rubber futures prices will directly affect Lu banglang's glue income. But on this day, he got the glue income, and at the same time, he got an additional compensation of 81.75 yuan, which was not a small income for the poor Lu banglang.

Baisha Li Autonomous County of Hainan Province, which also implements the "insurance + futures" targeted poverty alleviation project, has achieved "poverty alleviation and removal" in 2019, the third year of the operation of the targeted poverty alleviation project.

The year 2020 is the end of China's all-round victory in poverty alleviation. What is the role of the "insurance + futures" project in the poverty alleviation work in Hainan? What are the highlights? To what extent does it affect the income of poor households?

With these problems, the 21st century economic reporter recently visited Baoting Li and Miao Autonomous Counties and Baisha Li autonomous counties in Hainan.

Workers in Haijiao group in Baisha Li Autonomous County, Hainan Province, rough process the glue. Visual China

New exploration of financial targeted poverty alleviation

In Baoting County, rubber industry is the main source of local rubber farmers' income, especially for some poor households. However, in the past decade, rubber price has been "fluctuating and falling", which has seriously affected the production enthusiasm and economic income of rubber farmers. The phenomenon of "abandoning pipe" and "abandoning cutting" has become prominent, and the rubber production has declined, and the development of rubber industry is facing challenges.

"It's very hard to cut glue. I have to get up at two or three o'clock in the morning to collect glue at seven or eight o'clock. What's more, rubber harvesting also has weather requirements, and the annual income is very limited. Compared with previous years, the price of glue has dropped a lot Speaking of tapping income, Baoting County rubber farmers Zheng Haikang sighed to reporters.

However, with the help of the "insurance + futures" project, Zheng Haikang has a guaranteed income. "Today's harvest is OK. Today's dry rubber price is 10.03 yuan / kg, with a guaranteed minimum of 15 yuan / kg."

Zheng Haikang's "minimum guarantee" is due to his participation in the "insurance + futures" Project Co operated by the joint insurance company and the futures company.

Jingyang, deputy general manager of Agricultural Insurance Division of Hainan Branch of Taibao property and casualty insurance company, told the reporter of the 21st century economic report that the project first paid money from the previous period to help rubber farmers buy Rubber insurance from insurance companies; the insurance companies used the money to purchase rubber put options from risk management subsidiaries of futures companies. Once the price of rubber falls, the insurance company needs to compensate the rubber farmers. The compensation is actually the profit obtained by the insurance company from the purchase of put options. Finally, "insurance + futures" formed a closed-loop, which provided rubber farmers with a way to avoid market price risk, especially those poor rubber farmers with limited tolerance to market fluctuations.

The Shanghai Futures Exchange has found a maximum intersection between the two through the above projects, so that rubber farmers can also enjoy the dividends of financial products.

How does this product work? In fact, the understanding of farmers is not so deep, or it is not important. After that, the insurance company can manage the risk of the insurance company in the insurance market, and then transfer the risk to the insurance company in the insurance market CITIC futures related responsible person explained to reporters.

"Insurance companies, including local village cadres, are more likely to deal with farmers. They have spent a lot of effort in promoting the project to farmers, and the professional operation is carried out by the risk management subsidiary of futures companies." The person in charge said.

With the cooperation of all parties, the project runs smoothly and more and more farmers benefit from it. In 2019, the approved fund of Baoting rubber "insurance + futures" project will be increased to 5.4 million yuan, with 7382 insured households (3000 more than the previous year), including 2674 poor households. Rubber farmers have expressed their recognition and welcome to the project, and expressed their strong desire to extend the guarantee time of the project.

In 2020, the approved funds of Baoting rubber "insurance + futures" project will be further increased to 7.6 million yuan, and the number of insured households will be further increased to 8782, including 2877 poor households. As of July 31, 2020, the compensation amount of the project has reached about 4.2 million yuan (including pending).

Demonstration value of natural rubber "insurance + futures" in poverty alleviation

From 2016 to 2020, the No.1 document of the CPC Central Committee has proposed "expanding the pilot project of" insurance + futures "for five consecutive times. From July to September, 2018, the CPC Central Committee and the State Council issued the guiding opinions on the three-year action to win the battle of poverty alleviation and the strategic plan for Rural Revitalization (2018-2022), which clearly defined the requirements for expanding the pilot project of "insurance + futures" and improving the ability to guarantee agricultural risks.

In 2020, China will usher in the end of poverty alleviation. At this critical point, the "insurance + futures" project carried out in Baoting and Baisha counties in the previous period has a special significance.

The 21st century economic reporter noticed that in order to improve farmers' enthusiasm for tapping, the "price easy claim" system specially developed by Taibao e-agricultural insurance platform interacts with the sea rubber collection system to provide rubber farmers with real-time information query services such as underwriting, claim settlement, compensation payment, daily sales volume, navigation of designated collection outlets of insurance, futures price, etc., and also provides rubber farmers' score for the government Household planting, insurance operation supervision and other management functions.

"As long as tapping can make money, now I can see the income every day. I feel more happy when I know how much I can make up by cutting a knife. Good policies, subsidies. " Lu banglang, holding his mobile phone, said with a smile, pointing to his daily income.

"Insurance compensation is calculated according to the actual amount of rubber sold by rubber farmers every day. Only by producing and selling rubber can rubber farmers get compensation. It encourages rubber farmers' production, guides their enthusiasm for production, and avoids the problem of" relief poverty alleviation. " Jingyang said.

In Baisha Li Autonomous County of Hainan, "insurance + futures" project is also in full swing. The rubber planting area of Baisha County ranks the second in Hainan Province, and rubber industry is an indispensable pillar industry of local economy, and rubber price insurance is more important to stabilize farmers' income.

Fu Guifang, a villager in Yaka town of Baisha County, owns more than 7 mu of rubber forest. It is this rubber forest that supports three members of Fu Guifang's family and successfully supplies his two sons to university.

Fu Guifang has more than 7 mu of rubber forest, and his annual income is about 10000 yuan. Speaking of the two years when she had to support her two sons to go to school at the same time, Fu Guifang shook her head: "it's difficult to maintain a life. I'll get up in the morning and cut rubber until five or six o'clock." He joined the "insurance + futures" program in 2019. Although the amount of income increase was not large, Fu Guifang even remembered that "the income increased by 313.6 yuan last year."

Through the "insurance + futures" project, the enthusiasm of rubber farmers in Baisha County is also significantly improved. In 2018, the production of rubber per mu in Bai'an town will be improved from 60 kg / mu in 2018.

According to incomplete statistics, the project covers 22747 rubber farmers in Baisha County, and the rubber abandonment rate has dropped from 45% in 2017 to 30% in 2018. With the continuous promotion of rubber insurance, the rate of abandoned cutting has further decreased. The latest data show that the rate of rubber abandonment in Baisha County has dropped to about 10%.

"Practice has proved that the development of the natural rubber" insurance + futures "innovation project has guaranteed the income of rubber farmers in our county, directly assisted in poverty alleviation, and answered the path of how to help and how to play a multi-level problem in poverty alleviation." Luo Rui, director of the rubber office of Baisha County, said, "the most direct effect is that with the increase of premium, farmers' willingness to cut rubber further increases. In the future, the project coverage will be further expanded. "

Not only Baoting county and Baisha County, but also the relevant person in charge of the previous issue introduced that this mode will continue to spread and deepen, explore the establishment of a replicable, scalable and sustainable operation mechanism to help poor rubber farmers steadily get rid of poverty, but also better serve agriculture, rural areas and Rural Revitalization.

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