All Tobacco Crops in Chinese Region Covered by Insurance

Source from:  Xinhua News Agency 06/16/2008

All the 280,000 mu (18,667 hectares) of tobacco crops in Luoyang City of central China's Henan Province - a major tobacco-producing region - have been covered by insurance, as a result of efforts by the local government to support tobacco production. Under the insurance policy, tobacco growers in Luoyang only have to pay an annual insurance premium of 2.4 yuan (34 U.S. cents) per mu (per 0.067 hectare) to acquire an insurance compensation of 500 yuan (71.4 U.S. dollars) per mu (per 0.067 hectare) in the maximum, sources with the financial affairs office of the Luoyang City government told reporters recently. Luoyang is the first city in Henan Province to apply the system of policy-related insurance for agricultural production. To well operate pilot projects of policy-related insurance for agricultural production, including tobacco growing, is one of the ten real things that the government of Luoyang City has promised to do for local farmers for the year 2008. The insurer of tobacco production in Luoyang City this year is the Luoyang City Central Branch Company of China United Property Insurance Co., Ltd., with the Luoyang City Branch Company of Henan Provincial Tobacco Company being the insurant, and with the local tobacco growers concerned being the beneficiaries. Under the insurance policy, the total insurance premium for each mu (0.067 hectare) of tobacco crops in Luoyang in 2008 is 24 yuan (3.42 U.S. dollars), of which 12 yuan (1.71 U.S. dollars) will be payable jointly by the finances of the city and county concerned, 9.6 yuan (1.37 U.S. dollars) will be payable by the local tobacco company, and only 2.4 yuan (34 U.S. cents) will be payable by the farmers concerned. Enditem