Analysis Of Factors Affecting Farmers’ Willingness To Participate In Forest Insurance

Forest resources play a vital role for human survival, but forest disasters are unavoidable anywhere in the world. For the possibility of forest disaster, insurance has become an important way to reduce disaster losses of forestry operators. With the development of collective forest right system reform, all regions in our country are beginning to pay attention to forest insurance policies. Policy forest insurance is mainly form of forest insurance in China at the present stage, and is in the implementation of the pilot phase. However, forest insurance development process is facing many problems, such as inadequate supply and demand of forest insurance, low awareness of farmers in forest insurance, low forest insurance participation rate, and also willingness of farmers in forest insurance is largely affected by various factors.Through analysis of 408 household survey data in Shaanxi Province, this paper aims to understand farmers’ willingness to participate in forest insurance, and further study key factors affecting farmers’ willingness to participate in forest insurance. Then we put forward the existing problems in the development process of forest insurance, and make practical recommendations for the development of forest insurance work.This paper first presents research background and research significance of forest insurance, as well as research purpose of this thesis. From an integrated domestic and foreign study on forest insurance, we give a comprehensive review from the concept, influence factors and empirical analysis of forest insurance, and describe contents, research methods, technical route and innovations of this paper; also according to knowledge required in this paper, we discusses the concept, characteristics, the theory of supply and demand of forest insurance, the nature of positive externalities and quasi-public goods about forest insurance.In addition, this paper analyses the existing situation of farmer household participation of forest insurance through the methods of descriptive statistics, and summarizes the issue of farmer household participation of forest insurance from the perspective of government, insurance companies and households. Based on the analysis above, this paper studies the key factors which affect farmers’ willingness to participate forest insurance by using logistic model in SPSS20.0. The results show that there are six factors affecting farmers’ willingness to participate forest insurance, which are whether having the right certificate of forest, whether participating forest insurance, whether developing forest economy, the expenditure of forest, and the general attitude to forest reform. And among these factors, there are three factors having positive impact, including whether participating forest insurance, whether developing forest economy, and the expenditure of forest.Finally, through summarizing the fact that the participation rate of forest insurance is low, more than half farmer households are willing to participate insurance, and taking microcosmic characteristics into account, this paper suggests that government should encourage farmers to develop forest economy, improve the level of subsidies, develop more kinds of forest insurance product, strengthen the propaganda of forest insurance, improve the system of forest insurance and develop relevant laws and regulations.