The Impact Of Interlinked Credit And Insurance On Farmers’ Choice Of New Agricultural Technology

In china, the rigid constraints of rural farmland, fresh water and other resources isincreasing. In the background of increasing pressure on ecological environment protection, inorder to achieve Urban-rural integration and agricultural industrialization and modernization,the development of technological is the fundamental way. Farmers are the main application ofmodern agricultural technology. Their choice behavior of new technology affected by manyfactors. We study the application of new agricultural technology from the perspective offarmers. It will have a positive and direct effect on improving the conversion rate ofagricultural scientific and technological achievements. However, With agriculture graduallyinto the high input, high-cost, high-risk period of development, Financing and agriculturalrisk management has become a bottleneck of new technology applications. The interactionmechanism of agricultural insurance and agricultural credit is an innovative form of financialsupport for agriculture policy. It can effectively alleviate the double constraints of credit andrisk in farmers. Therefore, This article choose to carry out field research in Hengdong countyof Hunan province. We obtain the relevant data of household through surveys and interviews.On this basis, we research the interaction mechanism of agricultural insurance and agriculturalcredit and its impact on farmers new technology options.Based on the literature and theoretical Review, this paper analyzes the status ofagricultural credit, agricultural insurance and the development of new technologies firstly.Application of new technologies affected by their quality, capital levels and risk constraints.In this case, credit support and risk protection needed urgently. interaction mechanism ofagricultural insurance and agricultural credit not only to share the risks for agriculturalproduction, and can effectively alleviate credit constraints. Second, we analyze the interactionmechanism from an economic perspective, and present the policy environment in the earlystages of development, the specific practices and the main mode. Third, through the researchand basic statistical analysis of sample area, Some characteristics of the respondents werefound. They are older and not highly educated, their acreage is differences, their annualhousehold income is low, their awareness of insurance is not strong. Farmers’ choices of newtechnology are affected by individual characteristics, economic production characteristics andinstitutional environment. Fourth, this paper analysed the influencing factors in the adoptionof new agricultural technology with optimal scaling regression method. The results show thatthese factors including level of education, the arable area, household annual income, technicalinformation, formal risk coping mechanisms and credit availability have a significant impact on the application of new technologies. On this basis, we add the interaction mechanism inmatched logistic regression, in order to examine whether it affected farmers’ new technologyoptions and to what extent. The possibility to choose new technologies of the farmers whoadopt the interaction mechanisms is not the choice of the mechanism of farmers2.969times.In the process of promoting farmers choose a new technique, interaction mechanism ofagricultural insurance and agricultural credit has an important positive impact. Finally,Combined results of the analysis and actual situation of the interaction mechanism, this paperpresents policy recommendations from many aspects of farmers themselves, rural finance andinsurance markets, government. It is also provide solutions for the rural financial marketdevelopment and promotion of agricultural technology.