Shanghai has further improved its policy governing agricultural insurance, expanded the coverage of agricultural products under insurance and subsidy, adjusted the methods of and standards for insurance and subsidy, implemented the policy of differential fiscal subsidy, and explored the insurance mechanism that features the integration of general preferential basic insurance and supplementary insurance. The relevant policies are as follows:

1.From 2004 on, more subsidies shall be given to wheat, watermelon and muskmelon insurance;

2.Rice, pigs, milk cows and poultry shall be subsidized by 35 percent of the premium; vegetables (protected vegetables, vegetables for export and vegetable seeds), wheat, woods, watermelon and muskmelon, and freshwater breeding shall be subsidized by 30 percent of the premium;

3.The municipal financial department shall implement the method of differential subsidy and provide subsidies that should be shouldered by the local governments in accordance with the financial strength of the districts (county); and

4.The government at the municipal, district (county) level shall implement the general preferential basic insurance on rice, pigs, milk cows and poultry for qualified farmers (agricultural producers) and shall mobilize them to buy supplementary insurance.