Futures empower farmers so good agricultural products are never hard to sell

Located in Neihuang County on the Yellow River alluvial plain, Neihuang naturally has a distinctive sandy-loam soil profile (good permeability), which is very well suited for growing peanuts. This natural advantage has made Neihuang County one of China’s important peanut-producing areas, and it has earned the national agricultural product geographical indication with the characteristics of large fruit and full kernels, bright and clean color, high oil content, and excellent oil quality.

“Although Neihuang’s peanut brand is well known, it’s still hard to withstand the market’s ups and downs in pricing, and issues like ‘high yields but not high income’ often trouble local peanut farmers.” Liu Junming, chairman of Dingsheng Peanut Professional Cooperative (hereinafter referred to as Dingsheng Peanut Cooperative), said that they have more than 3,600 cooperative members, and each one is a capable person who knows how to farm. In 2022, they were also recognized as a national model farmers’ cooperative, but everyone clearly knows in their hearts: “Just knowing how to grow peanuts is not enough.”

“Taking 2024 as an example, although peanuts grew well and produced high yields this year, by the time of the harvest season, the market purchase price per jin dropped by several cents. Converted to per mu, that meant making several hundred yuan less. An old member crouched by the field edge and said bluntly, ‘Chairman, this land just isn’t satisfying to farm.’” Liu Junming lamented.

Just as Liu Junming was thinking about how to make sure everyone would no longer be busy for nothing, in November 2025, a project called the “‘Insurance + Futures’ New Agriculture Improvement Program” was launched in Neihuang County. It was jointly undertaken by New Lake Futures Co., Ltd. (hereinafter referred to as New Lake Futures) and the Henan Branch of Zhongyuan Agricultural Insurance Co., Ltd., with support from governments at all levels in Henan Province and the Zhengzhou Commodity Exchange (hereinafter referred to as the Zheng Shang Exchange). This brought new hope to peanut growers in Neihuang County.

It is understood that this upgraded “insurance + futures” project runs from November 2025 until before the Spring Festival holiday in 2026, covering precisely the key sales period after the peanut harvest season. Based on price insurance, the cooperative banks also provide loans to farmers. In addition, the project provides services for peanut purchase and compensation for price increases—everything from planting to selling is arranged clearly and thoughtfully.

With a try-it-out mindset, more than 1,600 members of Dingsheng Peanut Cooperative took out coverage, covering nearly 20,000 mu of peanut planting area. On the eve of the Spring Festival holiday in 2026, the “‘Insurance + Futures’ New Agriculture Improvement Program” project for Neihuang County’s peanuts ended. The total compensation paid was more than 300,000 yuan, and on average each mu of peanuts received 16 yuan in risk-coverage compensation.

For Liu Junming, this compensation is far more than just economic compensation; even more important is the upgrade of the operating philosophy, as well as the added confidence for the cooperative’s development. Not only has this project helped the cooperative hold onto its harvest, it has also truly broadened the cooperative’s horizons.

“Previously, we only knew how to farm. When prices fell sharply, we could only stand there helplessly. In 2025, New Lake Futures’ staff gave us multiple trainings on ‘insurance + futures’ knowledge, and calculated the economic accounts for us step by step, piece by piece. Now, we basically understand the operating principles of the ‘insurance + futures’ model. Some young members have even learned to check peanut futures quotes on their phones, and when there’s nothing to do they still joke, ‘The peanut futures price has dropped these days—has our insurance started working again?’”

“Now, the cooperative is no longer just a ‘cooperative that knows how to farm’; it is gradually moving in the direction of ‘understanding operations and knowing how to hedge risks,’” Liu Junming said. He added that he and the insured members have become volunteer publicity ambassadors, and whenever they meet people they have to promote the peanut ‘insurance + futures’ program.

“The cooperative needs to continue mobilizing members to take out coverage, and at the same time bring along farmers around the area who have not yet joined the cooperative. The original intention of the project, led and implemented by the Zheng Shang Exchange, is to enable the cooperative to play the role of ‘linking and benefiting farmers,’” Liu Junming said.

“What do you mean by ‘linking and benefiting farmers’?” he said firmly. It means you pave the way yourself first, and then lead everyone onto the road. Now everyone has stronger confidence in farming, and the next step for the cooperative will be to continue expanding the planting area, and also plant more high-quality peanuts—so as to make Neihuang County’s peanut brand shine even brighter.

“Grow well, sell steadily, and also work alongside neighbors in surrounding villages—that’s what it should look like to help comprehensively revitalize rural areas!” Liu Junming said.

A single small peanut, connected to a whole big industry. The story of Dingsheng Peanut Cooperative confirms the practical effectiveness of the “‘Insurance + Futures’ New Agriculture Improvement Program”: peanut farmers in Neihuang County have gone from being afraid of price drops to having confidence, and they have escaped the long-standing dilemma of “growing enthusiastically but worrying constantly.” Today, in Neihuang County’s peanut fields, there is an extra, steady layer of protection, along with more and more new hope.

(The Zheng Shang Exchange)

(Editor: Xu Nannan)

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