| Zigong is a large agricultural city which is vulnerable to natural disasters in Sichuan Province. Frequent drought, flood, hail and pest impact seriously on agricultural production and the attempts of peasants to shake off poverty. So it is crying out for establishing a set of mechanism to prevent and reduce loss from natural disasters. Policy-related agricultural insurance is an important part of the policy of modernization drive, which is also a general way for almost all countries to support agriculture development. About 80 years ago, some developed countries brought Policy-related agricultural insurance into practice which played an important role in promoting agricultural production. Thus launching policy-related agricultural insurance in Zigong City is an important way to effectively reduce agricultural risk, to prevent peasants from impoverishing when they face unexpected natural calamities, to preserve peasants' benefit and to maintain stability in rural area.From the technology aspect of the policy-related crop insurance, this article takes paddy, corn, wheat and rapeseed in each borough and county as study targets to estimate the agricultural production risk and divide the risk zone, and calculates the insurance premium rates of four crops in every borough and county. Then it designs insurance premium subsidy scheme and analyzes the impact on government's financial expenditure and peasants' income by the scheme. In the end, this article puts forward pertinent advice for developing policy-related crop insurance in Zigong City. According to the research, several conclusions are summarized as below:(1) Four crops production in each borough and county has different risk levels which decide agricultural insurance must follow the principle of adjusting measures to local conditions and executing by zone widely collect agricultural production and disaster information, and divide different risk area according to the characteristics of risk and the principle of insurance business.(2) Crops production risk zone division is the base of ratemaking for crop insurance. Usually the higher the risk level of crop production is in the area, the higher whose net premium rate will be. Based on the empirical Analysis, the difference of the levels of insurance premium rate in every borough and county are obvious, so are the increase of premium rates under different levels of protection. Take the corn for example, under 100% guarantee level, the PPR of Daan Borough is 5.07 percent which is 10 percent lower than that of Fushun County which is 15.76 percent. In Fushun County, the PPR increases 15.76 percent from 50% guarantee level to 100% guarantee level, and that is much larger than other districts. The higher PPR of Fushun County is accordant with its higher risk level of production.(3) The policy-related agricultural insurance system is a demand for a higher level of protection which can availably protect and raise the peasants' income. The results of every simulated scheme reveal that the extent of crops income change of peasants has great difference before and after they join the insurance, the crops income of the peasants who have joined the insurance can get relevant guarantee; besides, the financial support from government is high available as a whole. |
