A flock of sheep grazes on the grassland in Inner Mongolia. [Photo provided to chinadaily.com.cn]

North China's Inner Mongolia autonomous region officially announced that it will invest more than 40 million yuan ($6 million) into premium subsidy funds to carry out a pilot program for grassland insurance.

This was stated at the Inner Mongolia Autonomous Region Grassland Insurance Pilot Implementation Plan, which was jointly released by the Inner Mongolia Forestry and Grassland Administration and the Inner Mongolia Finance Department.

According to the plan, grasslands covering a total area of 37.98 million mu (2.53 million hectares) in 12 banners and counties in eight leagues and cities in the autonomous region will be involved in the grassland insurance pilot project.

According to the top authority of Inner Mongolia's forestry and grassland administration, the pilot areas cover three types of grassland: temperate meadow grassland, temperate typical grassland, and temperate desertification grassland. The insurance liability covers drought, fire, pests and rodents, and sandstorms. 

The pilot period for the grassland insurance is three years, and afterward, it will be gradually implemented throughout the entire region.

By the end of 2020, Inner Mongolia had already piloted grassland insurance in Urad Rear Banner in Bayannuur city.

More than 1 million mu of grassland operated by 70 herdsman households in the banner received risk protection services.

Grassland insurance aims to protect the grassland ecosystem while also providing insurance protection for herdsmen who might fall into poverty or return to poverty due to disasters.