B[The Black Sea becomes "another Hormuz" and global food supply sounds alarm] September 21st, due to the conflict in the Middle East, global attention has been focused on the Strait of Hormuz and soaring oil prices. But the Black Sea shipping impasse is further exacerbating the economic damage, not only threatening to drive inflation further higher, but also threatening the food security of fragile countries. Bond investors said that food supply risks have not yet been fully priced by the market, and the market is currently paying more attention to the cost of energy and other commodities. The Black Sea connects Europe and Asia and is an important transportation channel for global crops to some of the world's most populous countries. Russia and Ukraine together account for more than a quarter of global wheat trade, roughly the same share of global seaborne oil that passes through the Gulf Strait of Hormuz.
“The Black Sea is to the global wheat trade what the Strait of Hormuz is to the global oil trade,” said Caitlin Welsh, a food security expert at the Center for Strategic and International Studies think tank in Washington. “The world has underestimated the impact of these attacks.” According to estimates from research institute SovEcon, during the July-September harvest season, Russia and Ukraine’s combined wheat exports may end up being only about half of what they were in the same period last year. B[National Agricultural Technology Extension Service Center: It is expected that 1.43 billion kilograms of new corn seeds will be produced nationwide in 2026] September 11th, according to the 2026-2027 national important crop seed production and supply situation released by the National Agricultural Technology Extension Service Center today, the national corn seed production area will be rationally reduced in 2026, the concentration of advantageous areas will increase, and the variety structure will be accelerated. It is expected that 1.43 billion kilograms of new seeds will be produced, which can meet the seed demand for corn sowing in spring and summer next year. Specifically, the seed production area was 3.585 million acres, a decrease of 270,000 acres from the previous year, a decrease of 7%; the seed production area of three leading companies' main promoted varieties expanded against the trend, and the seed production area of three leading companies dropped by more than 50% due to the shrinking variety market. Small and medium-sized enterprises generally reduced the seed production area by 10% to 35%. Corn seed production continued to be concentrated in the northwest advantageous production areas, accounting for 77% of the country. In terms of unit yield, the national average corn seed yield is expected to be 398.3 kilograms per mu, a decrease of 6.3% from the previous year and the same as the average level in the past five years. (Reporter Liu Jian) B[Four departments: Strengthen risk protection for staple grains, cotton, oil crops, sugar, rubber and other bulk agricultural products to improve the balance of agricultural insurance development among regions] On September 11, the Ministry of Finance, the Ministry of Agriculture and Rural Affairs, the State Administration of Financial Supervision, and the State Forestry and Grassland Administration issued the "Implementation Plan on Accelerating the High-Quality Development of Agricultural Insurance." It mentioned that risk protection for agricultural products in the planting industry should be enhanced. Strengthen risk protection for bulk agricultural products such as staple grains, cotton, oil crops, sugar, and rubber, improve the balance of agricultural insurance development among regions, and improve the premium sharing mechanism below the provincial level. Gradually reduce the proportion of county-level premium subsidies for agricultural insurance in major grain-producing counties, and promote the expansion of full-cost insurance and planting income insurance coverage for rice, wheat, corn, and soybeans. Improve insurance support and protection for agricultural products such as potatoes, rapeseed, peanuts, sugar beets, and highland barley, as well as rice, wheat, and corn seed production. B[Four departments: Accelerate the high-quality development of agricultural insurance and basically establish a multi-level agricultural insurance system by 2030] On September 11, four departments including the Ministry of Finance, the State Administration of Financial Supervision, and the Ministry of Agriculture and Rural Affairs issued the "On Accelerating the High-quality Development of Agricultural Insurance" "Implementation Plan", the goal is to basically establish a multi-level agricultural insurance system that meets the risk protection needs of farmers, is compatible with the development of modern agriculture, and has division of labor between the central and local governments by 2030. It will generally reach the international advanced level and achieve a win-win situation in which subsidies are efficient, industries are guaranteed, farmers benefit, and institutions are sustainable. Policies will be more inclusive and development will be more balanced. The depth of agricultural insurance (premium/added value of primary industry) reaches 1.9%, the density of agricultural insurance (premium/number of employees in primary industry) reaches 1,200 yuan/person, and the intensity of investment in agricultural insurance science and technology (investment in scientific and technological innovation of agricultural insurance institutions/premium) reaches 1%. The coverage rate of agricultural insurance for the three major food crops of rice, wheat and corn has stabilized at around 90%. This will improve the level of protection of characteristic agricultural insurance for characteristic agricultural industries and better play the role of enriching and strengthening farmers. The comprehensive expense rate of agricultural insurance shall not be higher than 20%.
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