A Study On The Efficiency Of Agricultural Insurance Subsidies In China

Agriculture is not only the source of human food and clothing, but also the basis of survival.Whether it is from the perspective of economics and society,or from the political point of view, agriculture is the foundation.The development of agriculture is related to the development of the national economy and the stability of society and national independence.Complex risks will affect agriculture.Agricultural insurance is an effective means of managing risk and thus stabilizing the development of agriculture. The research of agricultural insurance has a positive meaning to improve social welfare. As the agricultural insurance has special attributes, and its development is inseparable from the support of the government. Among all the supports for agriculture,the most important way is financial subsidies, Our research on the role of financial subsidies for agriculture insurance is very meaningful. This study focus on the efficiency of agricultural insurance subsidies.Agricultural insurance has a property of quasi-public goods,farmers predict they will get certain insurance claims when agricultural production suffers risk. Agricultural insurance can not only solve production concerns, but also stimulated the enthusiasm of farmers.Farmers accelerate the pace of labor in favor of healthy development of agriculture. Agriculture is a very important part of the national economy, so the development of agricultural insurance has a range of positive effects.However, the private sector can not provide such a positive goods alone.Farmers has a great need for agricultural insurance to against agricultural risk and compensate for the loss, but the market price exceeds the acceptable level of farmers.Considering these two aspects of supply and demand factors, there is an obvious market failure in agricultural insurance。The development needs the support of government.Since the formal implementation of financial subsidies for agricultural insurance premiums,from the expansion of the scope of subsidies, the increase of the species of insurance to the enhance of subsidies strength, that has shown the government’s importance for agricultural insurance.Meanwhile, The continuous development of subsidies also stimulated the enthusiasm of farmers.More importantly, building a panel data regression model from the empirical perspective,and selecting the amount of central government subsidies and premium income as indicator, further quantitatively analyzing can find that due to the central government subsidies,the insurance enthusiasm of farmers is stimulated and the agricultural insurance has a rapid development.Nevertheless, in the financial subsidies for agricultural insurance, there are some problems affecting the efficiency of subsidies. Summarizing the issues and making changes can promote the development of agricultural insurance and the harmonious of economy and society.