Change is quietly unfolding in the apple orchards of Qixia, Yantai, Shandong. Previously, fruit farmers had little choice but to accept their fate in the face of market price fluctuations. Now, with the support of the "insurance + futures" model, their bargaining power and ability to withstand risks have significantly improved. This transformation stems from a decade of dedicated work on the Zhengzhou Commodity Exchange's "Insurance + Futures" project and is further enhanced by the precise empowerment offered by the "New Farmer Enhancement Plan" launched in 2025.
Qixia apples enjoy high domestic recognition for their excellent quality and complete industrial chain. However, frequent market price volatility has consistently been a key challenge hindering farmers' income growth and threatening industry stability. "Low fruit prices hurt farmers; it was common to see a year's hard work go to waste," said Zhang Ping, head of the Yantai Boshi Da Organic Fruit Professional Cooperative (Boshida Cooperative), echoing the sentiments of local growers.
A turning point arrived in 2025. As a provincial-level model rural cooperative, Boshida Cooperative met the requirements for participation in the Zhengzhou Commodity Exchange's "New Farmer Enhancement Plan." Led by Zhongtai Futures and insured by PICC's Yantai branch, the cooperative successfully applied for this special project. This initiative is precisely targeted at major apple-producing regions, focusing on empowering new types of agricultural businesses. It has become a model for linking and supporting farmers, helping the Qixia apple industry build a robust risk barrier.
"The data clearly demonstrates the project's strong protective power. This project covers 107 farming households and 1,696 acres of planting area, with a total insured volume of 3,392 tons and a guaranteed amount of 28.12 million yuan. The premium follows a multi-party contribution model: the total premium is 2.25 million yuan, with municipal and county-level finances each subsidizing 26%, totaling 1.17 million yuan. The futures company contributed 290,000 yuan, leaving farmers to pay only 340,000 yuan themselves. This significantly reduces the financial burden on farmers, effectively stabilizes their income, and greatly lowers their exposure to price risk," Zhang Ping stated.
It is understood that during the project's implementation, Zhongtai Futures played a leading role. Working closely with the insurance company, they conducted village seminars, explaining the "insurance + futures" model in simple terms farmers could understand and clearly outlining the potential benefits. Leveraging experience from a national investor education base, Zhongtai Futures translated professional jargon into accessible language, making it easier for farmers to learn and comprehend. Throughout the process, each party fulfilled its role: farmers focused on improving cultivation techniques, the insurance company provided coverage, and the futures company managed risk hedging, with no need for farmers to engage in futures trading themselves. Furthermore, all parties collaborated efficiently, utilizing online platforms to streamline insurance applications, loss assessment, and claim settlements, significantly boosting service efficiency.
The project's positive impact is evident across the cooperative's production, operations, and the farmers' mindset. On the production side, freed from worries about market downturns, farmers are more willing to invest. The use of organic fertilizer has increased noticeably, while practices like flower and fruit thinning and standardized management have become routine, leading to a steady improvement in fruit quality. Operationally, farmers are more confident about expanding cultivation and enhancing quality. They are proactively connecting with large downstream supermarkets and exploring forward supply agreements based on the insurance target price, gradually forming an order-based agricultural model. Mentally, farmers have shifted from "gambling on market trends" to "securing stable income," and from "fearing price drops" to "daring to grow high-quality fruit." Cooperative members unanimously agree: "With this insurance, we feel secure. Growing apples feels more promising."
According to Li Li, General Manager of the Network Finance Department at Zhongtai Futures, compared to standard "insurance + futures" projects, the "New Farmer Enhancement Plan" offers distinct advantages and stronger targeting. It provides more precise and robust coverage, better tailored to the needs of cooperatives. Additionally, the insurance has been upgraded to revenue insurance, offering dual protection against both price and yield risks. Furthermore, driven by the "New Farmer Enhancement Plan," the project is progressively building a comprehensive chain model of "Insurance + Futures+Orders+Brand+Credit." This not only stabilizes farmers' income but also helps continuously burnish the Qixia apple brand.
Li Li believes the "insurance + futures" model injects strong momentum into Yantai's apple industry. It effectively mitigates price volatility, prevents situations where "low fruit prices hurt farmers," and strengthens the foundation for rural revitalization at the county level—stabilizing employment, boosting farmer incomes, and promoting the transformation of traditional fruit growing into a modern, financially-enabled sector. This "Yantai Model" is becoming a replicable and promotable "Shandong Example," offering valuable insights for rural industrial revitalization nationwide.
A representative from the Zhengzhou Commodity Exchange stated that 2026 marks the beginning of the 15th Five-Year Plan period. The Exchange will continue to expand the service boundaries of "insurance + futures," innovate service models, promote increased income for farmers and enhanced efficiency for industries, and achieve multi-party wins through financial empowerment, writing a chapter of the era that is both compassionate and impactful on the path to comprehensive rural revitalization.
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