Performance Of The Financial Subsidies For China’s Agricultural Insurance

Agriculture is a fundamental industry, but still weak. And agricultural insurance is one of the WTO’s "Green Box" tactics to protect and support the development of agriculture. In2004,the government carried out the work of policy agricultural insurance,in2007,Sichuan, Anhui, Jilin, Inner Mongolia, Jiangsu and Xinjiang started premium subsidies pilot,in2011, Sichuan and Inner Mongolia carried out the performance evaluation of crop insurance subsidies. After the introduction of financial subsidies,the indicators of the premium income, reparations, coverage area and the insured farmers have achieved significant growth. However, its development is also a lot of problems, mainly subsidies standards and scale making it rigidly uniform,inadequate insurance demand, some local government or insurance agency cheating agricultural insurance subsidies etc. we can effectively regulate the financial subsidies for agriculture insurance and achieve the optimal scale, reasonable allocation and utility maximization.Since2011, many scholars have evaluated the performance of agricultural insurance subsidies, but mainly analyzed survey data for some provinces and cities. The first chapter is the preface, including research background and significance of this thesis, literature review, theoretical tools and research methods,and thesis innovation,and shortage of points and the subsequent improvement. Based on the perspective of farmers and the government, this paper reflects the effect of financial subsidies from the perspective of farmers, and studies the performance of subsidy policy from DEA method. Through this analysis, the paper can grasp the key points of the agricultural insurance subsidies policy performance, and provide useful lessons for the healthy and sustainable development of agricultural insurance.The research ideas and contents of this paper are as the following: The first chapter is the introduction part, including the background and significance of the research, the literature review, theoretical tools and methods and innovation, the shortcomings and improvements.The second chapter describes the theoretical basis and development situation of Chinese agricultural insurance subsidy policy analysis, including basics of financial subsidies, practical significance of performance evaluation, theoretical analysis and subsidy policy conditions Analysis.Form quasi-public goods theory, welfare economics, agricultural protection theory and weak agricultural risk insurability theory, the part is an analysis of the need for agricultural insurance subsidies. Introduces the development and change of the fiscal subsidy policy of agricultural insurance, and then study the effects after the fiscal subsidy policy of agricultural insurance.Form the perspective of farmers,the third chapter reflects the performance of the agricultural insurance subsidies through three single indices, including the status of farmer participation in agricultural insurance policies, Loss compensation for farmers and Influence of policy agricultural insurance in China on their income levels. In the second part, the paper studies the present situation and the reason analysis. The third part analyzes the impact of policies on Farmers’ income stability.Based on the government perspective, the fourth chapter is to evaluate the financial performance of agricultural insurance subsidies by DEA method, including the selection of indicators and data sources and empirical analysis. The first part describes the indicators selection and two sets of data; the second part analyzes the efficiency of the two sets of data.The fifth chapter describes the agricultural insurance policy recommendations of improving our system of financial subsidies to, including strengthening the system of government subsidies agricultural insurance and the suggestions of improving the system of financial subsidies of agricultural insurance. The first part presents three proposals:strengthen the propaganda of agricultural insurance and raise awareness of insurance of farmers; expand the network of rural agricultural insurance, improve the operation mechanism of agricultural insurance——based on the part of the government and farmers payment premiums. The second part also made three recommendations:improve the level of large-scale operation in agriculture, and construct of a new farming System; suit one’s measures to local conditions, implement the difference subsidy policy; gradually expand the variety of subsidies and adjust the security level and the level of agricultural insurance.The innovation of this article may be as the following:First, this paper Uses DEA analysis method to evaluate the performance of government financial subsidies.Because the policy is complex, and affected by the many factors,DEA can comprehensively, objectively evaluate the policy efficiency. In addition,because the relationship of input and output index and it is difficult to fin relation epuation,DEA can simplify the analysis and reduce the error. Second, this paper use the rate of compensation to measure the status what farmers can get compensation from the policy agricultural insurance, and people rarely analysis of this indicator. Third, the policy recommendations put forward to strengthen and improve the land trust to improve the degree of the scale of operations of farmers,and the governmentcan try to introduce reimbursement system for premiums paid for the operation of the mechanism.Inadequacies of this paper is as the following:First, because of the relative new topics and relative lack of relevant data, based on the government’s effect Evaluation, Lack of the detailed data for each province and comparability and further research. Second, when analyzing the effect of Inner Mongolia municipalities, the latest data could not be found and this article uses the historical data. Since the topic is newer and this paper lacks of relevant data, finding all provinces latest date to carry out a comprehensive comparative analysis is meaningful. When the latest data of Inner cities could be used, the study would be timelier.