Study On Rice Production Risk And Disaster Compensation Mechanism

Hubei province is located in the middle reach of Yangtze river, in the north of Dongting lake, and is the national major rice production area .But in Hubei province, natural disasters are still frequent, rice production risk is high, the rice farmers faced the risk both nature disaster and market risk. Rice insurance is not only the part of agricultural security system, but also has become the most important non-price tool of agricultural protection in the world. Today food safety has become the forever goal of agriculture and the development of social economy, with frequent natural disasters, to ensure that the farmer's income and social harmony, executing the rice insurance in Hubei, and supplemented by disasters relief, which in Hubei province is an inevitable action incorporating into the international agriculture and ensuring farmer living and working in peace and contentment.April 2007, the rice policy insurance firstly makes experiment in Wuhan Huangpi district. In 2008, Hubei rice insurance brought into the policy agriculture insurance experiment province that its premium subsided by central finance. At this time policy rice insurance in Hubei province comprehensively launched. However agricultural insurance is a system of science and engineering, if lack of corresponding technique and agricultural insurance actuarial ability, the implementation of the policy will be greatly affected. Thus the risk assessment method using advanced rice production risk assessment, agricultural insurance zoning, are the premise that design agricultural insurance products and develop agricultural insurance business scientifically.Based on the summary of domestic and foreign theoretical research on agricultural insurance, we studied Hubei rice production risk and rice insurance from farmers' angle in qualitative and quantitative, standard and empirical study approaches. This thesis consists of 6 chapters. We list four main aspects of our research as follows:Research 1: the general situation of rice production and rice production risk in HubeiIn grain production of Hubei, the rice planning area is 50% above, production 70%, and commodity production is 80%, Hubei is the third rice production province of china followed Hunan and Jiangxi province. However, due to the natural disasters, the price of rice and planting cost, the rice plant yield and planting area were largely fluctuation, yield and area have reduced many times in the nearly 20 years. The farmers urgently need measures to reduce production risk, improve planting income and stable production.Research 2: The assessment of rice production risk and risk zoning in Hubei provinceThe study shows: the rice production risk in the main production city is obviously higher than average level of Hubei province, especially in the center area of Jianghan plain, the risk is highest. Beside the reason that we take specialization index as the risk factors, the city of main production city, Xiangfan, Jingzhou, Tianmen, Suizhou, etc, the rice yield fluctuation ,the probability of reduction are far higher than Hubei average level. And according to the rice yield model, the trend of rice yield can be seen as a falling trend.Research 3: The analysis of the current rice compensation system on government relief and agricultural insurance in Hubei provinceProducing relief is the main government aid for rice disaster compensation currently, but it is very limited for rice production loss compensation. Research found that rice producing relief in Hubei exist various problems: fund budget is limited; the local government financial allocation to rice relief funds is lack. Rice insurance start from 2007 and widespread to the entire province in 2008 .Rice insurance is still in the initial stage, but rice insurance has more advantages for loss compensation compared to the disaster relief.Research 4: the risk aversion behavior of rice farmers and the position of agricultural insurance and disaster relief in the sequence of demands in scattering production risksWhen the farmer meet disaster risk, will take various measures against risks .survey found that farmer tend to rely on own strength to against the rice production risk. Affected by the traditional thinking habits, farmers rely less on external forces, even if avoid the risk on external force, they prefer the government relief and government funding. Agriculture insurance lies in the back of all means of avoiding production risks. Farmers think the government relief acts a little meaning and agricultural insurance cognitive also relatively shallow. Farmer's willing to pay agricultural insurance is still at low level.