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The Model of Beijing’s Pig Target Price Insurance System (No.66, 2019)


By Qin Zhongchun, Research Department of Rural Economy, DRC

Research Report, No.66, 2019 (Total 5566) 2019-5-7

Abstract: Since 2013, Beijing, the capital of China, has made positive explorations in establishing the target price insurance system relating to pigs, and accumulated valuable experience. The main features of the system are that the local Party Committee and government take the initiative to help farmers share market losses by designing the above-mentioned system in a scientific and rational manner, strengthening the cooperation between relevant departments and institutions, and implementing a standardized, specialized, modernized and dynamic management mode. Without the involvement of the futures market, such an effective operation mode, based on agricultural product target price insurance system, offers policy-based market insurance support for farmers. The system has taken the following major measures. 1. By keeping an overarching goal, the system attaches importance to protecting the interests of pig breeders and ensuring the non-grain food supply for urban citizens also known as “vegetable basket products”. 2. It lays stress on scientific laws and strictly designed subsidies to rationally avoid market risks.3. It provides conditional support by way of defining the criteria of supporting objects and guiding farmers to pay for insurance. 4. Through specialized operation, it has strengthened public management services and organized insurance companies to undertake insurance projects. 5. Bolstered by modernization and information platform, it has constantly enriched big agricultural data. 6. Through dynamic adjustment, it has constantly improved insurance contracts in line with the changing situation.

Key words: target price, insurance system, pig, model, Beijing Municipality