Hot Words

农业保险保费补贴 (nongye baoxian baofei butie)

Subsidy for Agricultural Insurance

A financial aid from central and local governments to promote agricultural insurance, which covers farmers' planting and breeding industries against natural disasters and diseases. With relatively higher rate of incurred loss, the agricultural insurance premium is higher than for other insurances. With State subsidy, the insurance companies could afford charging less from farmers. This subsidy is an effort of the government to cover agriculture against risks under a market-oriented framework instead of only granting relief fund to farmers after disasters.

Since 2004, nine provinces and autonomous regions started their own trial projects of subsidizing agricultural insurance. In 2007, the central government assigned 1 billion yuan to start pilot projects in six provinces and regions.

(China Daily 07/23/2008 page8)