Analysis Of Factors Influencing Xinjiang Cotton Farmers' Willingness To Participate In Insurance

Agricultural insurance is one of the important tools in agricultural risk management,which can effectively enhance the ability of farmers to cope with the risks in natural and market,it is an important measure for farmers to obtain post-disaster compensation,stabilize the loss and resume production,and it is irreplaceable for any pre-disaster prevention measures.Since 2004,the central first document has proposed to strengthen the development of agricultural insurance every year.China's agricultural insurance has a breakthrough development since it was incorporated into the central financial subsidy range in 2007.From 2008,China's agricultural premium insurance have been ranked first in Asia steadily,and ranked second in the world,it is the second largest agricultural insurance market in the world just behind the United States.(Long Wenjun,2014)In spite of the great development of agricultural insurance in our country,coverage rate is still at a low level,only the main crops(rice,wheat,corn,soybean and cotton)coverage rate have reached 50% of the planning area.Under the current agricultural insurance system,although financial subsidies has a high proportion that some areas reached 80~90% and farmers take a low premium.However,the proportion of farmers buying agricultural insurance has been a low level,the contradiction of "insufficient demand and limited supply" have been forming in agricultural insurance market.Based on the above,the general goal of the article is to know why the farmer have a low participation in insurance rate to study the factors which can affect farmers ' willingness of participate in insurance,and give policy advices about it,in order to provide reference for promoting the development of agricultural insurance.Therefore,based on the former studies,taking cotton growers in Xinjiang as an example.I analyzed the cotton insurance in Xinjiang with the survey data,and researched the farmers' willingness to participate.Based on summarizing literature and theory,I designed questionnaires and made descriptive statistical analysis of influencing farmers' willingness to participate in insurance.In addition,construction of logit model to make the quantitative analysis,and empirical analysis the factor of affecting farmers' willingness to participate in insurance by measurement software,then drawing the final conclusion.The results show that the farmers' lack of correct and objective knowledge of agricultural insurance,they don't know about the insurance contract,the terms and conditions,the insurance liability,the claim procedure and the standard of loss.It obviously affected the willingness of cotton farmers to participate.Secondly,in the current environment and production conditions,farmers are more concerned about insurance level relative to agricultural insurance premiums.In addition,the difference development of corps and local cotton insurance that accord with the trend of pluralistic development,however,the compulsory participation policy of corps hinders the willingness of the Corps' employees to participate in the insurance,the local in the production mode and service level behind the Corps,which also affected the local farmers' risk management capabilities.In conclusion,I proposed the following suggestions in order to improve the participating willingness of farmers and the ability of risk management: Cotton households should improve their risk management capabilities to reduce disaster losses;Insurance companies should strengthen propaganda with government departments at all levels,making farmers insight into agricultural insurance with multi-way and multi-measure,so that farmers can recognize the benefits of insurance and the risks of it;Insurance companies continue to innovate insurance types,such as income insurance,price insurance and other risks,and gradually improve the level of insurance protection;The Government should open the agricultural insurance market with positive guidance,and import competition system to break through the situation of only one insurance company in a counties,thus stimulate the insurance company to improve service capability and level;To improve the socialized service system at the local,we should reduce the production and transaction cost of peasant households,spread the risk moderately,and increase the farmers' willingness to purchase agricultural insurance.