Research On Effective Cooperation Mode Of Peanut Planting Insurance In China

After joining the WTO, Chinese agriculture is facing fierce internationalcompetition because of defects in the domestic market itself. Chinese agriculture maybe low economic efficiency in a long period, while the production and operation are athigh risk. Considering its weak position, Chinese agricultural industry is facing severechallenges.As the foundation of national economy, agriculture is a special weak industry,which is facing the risks from nature, market, technology, policy and so on. Thus, itsrisk management should be strengthened. Agricultural insurance will play animportant role in safeguarding the development of agriculture. Internationally, theagricultural insurance system has become an important non-price agriculturalprotection tool, and many countries in the world are actively doing experiments andimplementing this policy. This article manages to study the supply and demand wishesin peanut planting insurance in our country from the perspective of microcosmic, sothat effective cooperation mode for the two sides can be established, and theagricultural risks can be spread and transferred to boost the development of China’sagricultural economy.In response to these problems, this article’s main contribution and research workare focusing on the following aspects:Firstly, in the aspect of measuring research on the demand wishes of peanutplanting insurance in Shandong Province, the method of questionnaire survey is usedto extract the factors affecting demand wishes. And Logistic Model is used to make anempirical analysis for the demand wishes. Studies show that age, education and theper capita arable land have little impact on demand wishes. The four factors-annuallosses from natural disasters, a university student at home or not, ever heardagricultural insurance or not, whether purchased the commercial insurance, havepositive impact on demand wishes. While the other four factors-farming life, laborratio, important issues in family and average annual income, have negative impact ondemand wishes.Secondly, qualitative analysis on the supply of peanut planting insurance wishes ismade. The result shows that insurance companies are the key factors affectingagricultural insurance supply in our country. And problems are also existed in thesuppliers, including the defect of reinsurance mechanism, lacking of primaryinsurance staff and inadequate loss assessing and claim technology and risk zoningtechniques in Chinese agricultural insurance. These problems are hindering theinsurance company’s supply wishes to some extent.Thirdly, Evolutionary Game Theory is used to analyze the demander and the supplier in peanut planting insurance. The result shows that the government plays animportant role in both demand and supply in peanut planting insurance. Finally,the correlation in farmers, government, and insurance companies is determined toexert the government’s influence in the development of peanut planting insurance. Itis conducive to the comprehensive promotion of peanut planting insurance. The utilityanalysis of agricultural insurance cooperation mode proves that the business modewhich is led by the government and operated by commercial insurance companies ismore effective. The risks are jointly shared by the government and commercialinsurance companies. Finally, a relatively complete operating mechanism inimplementation of the cooperation mode is built.Fourthly, the supporting conditions of the effective cooperation mode of peanutplanting insurance are analyzed from the four aspects-improving relevant laws andregulations, improving the information feedback system, cultivating new policyholders and establishing the risk prevention and alert system of peanut planting.The innovation of this article is mainly reflected in the following two points:(1) The current domestic academic researches in agricultural insurance are mostlyfocusing on crop insurance such as rice and cotton, and livestock insurance such assow. This article aims on peanut planting insurance as the research object, which is inaccordance with the actual situation in Shandong Province and can enrich theresearch of agricultural insurance.(2) This article tries to use the empirical analysis to research on the factors ofsupply wishes and demand wishes, and the influencing factors. The article also tries touse the game analysis to verify the effectiveness of the supply and demand behaviorin peanut planting insurance. Meanwhile, the article tries to use the utility analysis torecognize the effective cooperation mode of peanut planting insurance, and researchon implementation methods from multi-dimension and multi-level. At last, this articleprovides theoretical basis and policy recommendations for designing effectivecooperation mode of peanut planting insurance.