Research On Agricultural Drought Index Of Wheat-based Insurance Risk Zoning In Shandong Province

Agriculture has been the importance issue of our country, particularly with regard to security of food production, the key issue is to protect the healthy development of national economy and social stability. However, agriculture has its particularity, extremely vulnerable to natural disasters and losses, as China’s Shandong Province, a major agricultural province, because of its special geographical and climatic conditions,vulnerable to natural disasters, especially the threat of drought, because of protection development and the interests of the health of farmers in agriculture, reduce the losses caused by natural disasters, the government has been actively pursuing the policy of agricultural insurance. However, traditional agricultural insurance and moral hazard and adverse selection and other technical and management issues. While the new agricultural insurance that is weather index insurance policy can effectively overcome the traditional problems of agricultural insurance.Therefore, we selected Shandong Province as the study area, select the main food crops of wheat in Shandong Province as the research object.In this paper, the theory of agricultural insurance risk zoning and drought index insurance, based on the status of drought risk of wheat in Shandong Province, summarized the specific measure of wheat Drought in Shandong Province, including rainfall, wetlands,green coverage area, irrigation area, agricultural machinery power, water conservancy facilities in an area, per capita annual income of farmers and nine gross national product.Collecting 2001--2014 in Shandong Province in each specific drought index data on the basis of its analysis of factors, analyze and summarize the impact of drought in wheat in Shandong Province two main factors, namely, dry conditions, and disaster prevention and mitigation; Principal factors relevant data on the extent of wheat in arid regions of Shandong Province cluster analysis of drought in Shandong Province 17 cities of the regional division, divided into high-risk areas of drought, sub-high-risk areas of drought,drought four different drought-risk areas of moderate-risk areas and low risk areas of drought. According to empirical results of factor analysis and cluster analysis, Shandong Province wheat drought index insurance covering design, calculation, Shandong Province,wheat drought index insurance pure rates, premiums, trigger values and compensation values. Finally, the net rate of wheat in Shandong Province drought index insurance and pure premiums be revised, and the relevant recommendations of wheat in Shandong Province drought index insurance promotion.Based on the divided degree of risk in different regions of wheat drought in Shandong province, and based on different risk zoning drought, drought index insurance rates wheat around the city in Shandong province were determined. Insurance companies so as to provide an effective basis for the development of agricultural insurance rates for different risk partitioning, but also enriched the theory of weather index insurance, providing favorable conditions for the development of agriculture in Shandong Province and Shandong provincial government’s disaster prevention and mitigation.