Nanhua Futures General Manager Jia Xiaolong: Deepening "Bank-Insurance-Futures" to Strengthen the Food Security Safety Net

Organized by the Dalian Commodity Exchange, the “Silver-Exchange Insurance” seed-sowing and grain-collection model innovation development seminar was successfully held in Harbin recently. Jia Xiaolong, Secretary of the Party Committee and General Manager of Nanhua Futures Co., Ltd., attended the meeting and delivered a keynote speech, systematically expounding the practical results and promotion value of the “Silver-Exchange Insurance” model in addressing pain points such as farmers’ difficulties in financing, difficulties in selling grain, and high risks, and clarifying Nanhua Futures’ strategic direction to continue to deepen agricultural finance innovation and serve national food security.

In his speech, Jia Xiaolong said that this seminar closely follows the spirit of the 2026 Central “No. 1 Document”, focusing on the development of an income protection mechanism for grain-growing farmers. It is of great significance for promoting multi-party coordination among “banks + insurance + futures + enterprises” and helping achieve high-quality agricultural development. Jia Xiaolong pointed out that since the Dalian Commodity Exchange launched the soybean “Silver-Exchange Insurance” project in 2023, Nanhua Futures has taken the lead in implementation and participated in operations in depth. It has already built a full-chain closed-loop service system and has effectively turned financial instruments into a stabilizer to safeguard farmers’ income.

Jia Xiaolong introduced that the “Silver-Exchange Insurance” model brings breakthrough value to the agricultural industry chain from four aspects. First, through a “full-chain” closed loop, it fundamentally addresses the pain points of farmers’ “difficult financing” and “difficult grain sales”. At the front end, banks provide dedicated loans to planting entities with income-insurance policies and purchase orders from leading enterprises as guarantees, solving the urgent need for “startup capital”. At the back end, leading enterprises sign basis orders and cooperate with the “second price adjustment” mechanism, granting farmers flexible rights to sell grain—both with a minimum guarantee and no upper cap. Taking the 2023 Qiqihar Nenghe Xiangyu project led by Nanhua Futures as an example, the project not only provides high protection of up to 725.12 yuan/mu, but also, in the later stage, increases farmers’ income by 120,000 yuan through the “second price adjustment” segment. This vividly demonstrates that “Silver-Exchange Insurance” not only helps farmers “sell their grain”, but also enables them to “sell at a good price”.

Second, through “closed-loop” risk control, it ensures the safety of the supply chain and the capital chain, achieving deep integration between finance and the real economy. When settling grain payment, leading enterprises first pay the funds to the bank to repay the loans; if there is any remaining balance, it is then paid to the insured entities. If the loans fail to fully cover the amounts, the insurance company directly makes up the shortfall from the claims payout. This mechanism greatly reduces banks’ credit risk and increases the enthusiasm of financial institutions to serve the “agriculture, rural areas, and farmers”. In 2023, Nanhua Futures led and participated in a total of 3 “Silver-Exchange Insurance” projects. In the Qiqihar Nenghe project, although the plots suffered damage from disasters, the insurance company’s claims payout of 5.3 million yuan (with a payout rate close to 300%) seamlessly connected with the bank’s repayment mechanism, covering the bottom line of risk and protecting the interests of all parties.

Third, “’Silver-Exchange Insurance’ plays the role of a ‘ballast stone’ in serving national strategies and ensuring food security through ‘high-standard’ demonstration,” Jia Xiaolong said. In 2024, among the 8 “Silver-Exchange Insurance” projects in Heilongjiang approved by the Dalian Commodity Exchange, Nanhua Futures led 2 and participated in 1. In particular, for projects implemented on farms under the Beidahuang Group, Nanhua Futures directly benchmarked the standards for central fiscal revenue insurance. Among them, the Qiqihar? Actually the two projects are: the Heihe Nenjjiang Heshan Farm project and the Jixi Mishi City Bawu Wufang Farm project—both with total premiums each close to 4 million yuan, covering a soybean planting area of more than 60,000 mu, and with a guarantee amount as high as several tens of millions of yuan.

It is worth noting that in 2024, Nanhua Futures also participated in the country’s first corn “Silver-Exchange Insurance” seed-sowing and grain-collection special project. By replicating and promoting this successful model from soybeans to the corn sector, it provided a guarantee amount of over 70 million yuan for large-scale family farms. This marks that the “Silver-Exchange Insurance” model is expanding from a single crop to multiple categories, and its replicability and promotional value have been further validated.

Fourth, Jia Xiaolong said that “Silver-Exchange Insurance” achieves a leap from “test fields” to “showcase rooms” in serving the national strategy of building an agricultural powerhouse nationwide through “cross-regional” replication. In 2025, Nanhua Futures, together with other companies, successfully implemented a corn “Silver-Exchange Insurance” project in Tacheng, Xinjiang. The project insured a corn planting area of about 30,000 mu, covering more than 60,000 local farmers, and provided a guarantee amount of 48 million yuan or more. The final project’s insurance claims payout rate was close to 59%, effectively playing the risk protection role and solidly safeguarding the planting income of insured farmers.

Looking ahead to 2026, Jia Xiaolong pointed out that Nanhua Futures will continue to rely on the Dalian Commodity Exchange platform, with Heilongjiang as the core base, to fully promote full-capacity application of “Silver-Exchange Insurance” projects and their nationwide rollout. It will continuously optimize the integrated services of “bank + insurance + futures + orders + supply chain finance”, using a more mature financial closed-loop system to safeguard grain farmers’ income and stabilize industry expectations, thereby making greater contributions to improving farmers’ income protection mechanisms and strengthening the national food security line.

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