Millions of China's Farmers Now Buy Climate-Change Insurance

Weeks before the harvest started last summer, Li Ping's rice paddies were hit by extreme weather.

Temperatures of 95 degrees Fahrenheit baked Longtan village in north China for over a month, causing leaf yellowing and damaging grain production. As a result, Li's rice yields decreased by 20 percent compared with normal years.

"Li is one of hundreds of millions of Chinese farmers who are now using insurance as a tool to hedge against the risks of climate change. China is the world's second-largest agricultural insurance market after the United States by premium income, and it is scrambling to spread the use of climate-related insurance into other sectors."