On January 5th, in Weinan, Shaanxi, a vital cradle of both Chinese agricultural and commercial civilization, the northern plains stretch out flat and vast, while the Qinling Mountains stand majestically like a screen to the south. The Wei River flows eastward, and the You River surges north, their intersecting valleys nurturing this fertile, thousand-mile "granary." As the local farmers' "money bags," hog farming carries the livelihood hopes of countless families. Linwei District, located in the core area of the Guanzhong Plain, has a long history of hog farming; in the first half of 2025, the number of hogs slaughtered reached 133,800, a year-on-year increase of 8.5%, making the breeding industry a crucial pillar of the regional economy. However, for a long time, the severe price volatility triggered by factors such as rising feed costs, off-peak consumption seasons, and disease outbreaks has remained a "survival challenge" for farmers.
Recently, a hog "insurance + futures" project supported by the Dalian Commodity Exchange (DCE) and implemented by Huishang Futures in partnership with the Shaanxi Branch of Groupama Property Insurance Co., Ltd. was successfully concluded. A claims payout of 3.27 million yuan was accurately delivered to the farmers. This "protective net" woven with financial tools not only securely upheld the farmers' "golden rice bowl" but also demonstrated the tangible benefits of a decade-old mature model in supporting agriculture.
The "enduring challenge" for the Guanzhong farming belt is the survival challenge under price volatility. Weinan's Linwei District is situated in the heart of the Guanzhong Plain, where the fertile soil of the "Eight Hundred Li Qinchuan" has fostered a long-standing hog farming tradition. Farmers here have a deep history of raising pigs; many families rely on a few sows to breed piglets, or operate scaled farms slaughtering thousands of hogs annually, forming the backbone of their household income. Yet, the "cyclical nature" of the hog market is ever-present: rising feed prices, seasonal consumption slumps, disease impacts... each sharp price drop can wipe out the profits from half a year of hard work. Many local small and medium-sized farmers admit: "No matter how well we raise the pigs, we fear not getting a good price; sometimes we just have to grit our teeth and sell at a loss."
Precise hedging combined with a substantial payout resulted in a "timely rain" of 3.27 million yuan in real funds. Targeting the core issue of price volatility, and with strong support from the DCE, Huishang Futures partnered with Groupama Property Insurance to precisely anchor the needs of Linwei's breeding industry, tailoring a scientifically appropriate hog "insurance + futures" protection plan. The scheme utilized enhanced Asian-style put options, covering 15,000 hogs scheduled for slaughter three months later, building a robust risk protection barrier valued at 20.84 million yuan. Of the total premium of 1 million yuan, a multi-support system of "policy guidance + fiscal backing + market participation" was formed: the DCE provided 350,000 yuan in special support, while provincial, municipal, and county-level finances contributed a combined 300,000 yuan in subsidies, effectively reducing the premium burden on the farming entities. This leveraged 1 million yuan in premiums to secure nearly 20.84 million yuan in risk protection, amplifying the leverage effect of financial aid for agriculture.
When the market price for hogs fell below the agreed protection range, the project swiftly initiated the claims process. Ultimately, the 3.27 million yuan payout was accurately disbursed to the farmers, achieving a claims payout rate of 327%. This "real money" not only fully compensated for the losses caused by the price drop but also restored the farmers' confidence and willingness to expand their herds.
The significance of the project extends far beyond the payout figure, lying in the construction of a sustainable agricultural risk management system. As a microcosm of the DCE's decade-long "insurance + futures" model, this project introduced professional financial derivative tools to the grassroots level, allowing farmers accustomed to being at the "mercy of nature" to lock in their earnings for the first time using instruments like OTC options and futures hedging. More importantly, the project bridged the "last mile" of financial services—the covered farming entities included both enterprises that create jobs for surrounding farmers and small-to-medium farms rooted in villages. Through a model of "larger entities leading smaller ones, with a radiating effect," it allowed the "sunlight" of finance to reach the yards of more ordinary farmers. As a local official remarked: "In the past, we relied on experience to manage risks; now, with financial tools providing a safety net, farmers dare to farm and are willing to farm, paving a wider road for rural revitalization."
The winter wind along the Wei River is chilly, but the feed mixers on the farms are already rumbling. With this financial "shield" safeguarding their endeavors, the farmers of Guanzhong are engaging in the new year's breeding production with greater composure, cultivating the fields of hope and quietly awaiting a new year's abundant harvest.
