Effects Of Policy Agriculture Insurance On Farmers’ Income Growth

One of the important functions of agricultural insurance is to stabilize the income of farmers.The china’s agricultural insurance market developed late and experienced a series of development and exploration.The insurance system and model is improving,and the policy-oriented agricultural insurance system came into being.In 2004,the Central "No.1 document" proposed that the government should establish a policy of agricultural insurance system quickly,select some products and parts of the first pilot,and give some premium subsidies to the farmers who participate in agricultural insurance.This action opened A New Chapter of Policy-oriented Agricultural Insurance in China.Then,local governments immediately began to subsidize agricultural insurance according to their own financial income.Even though they have achieved some results,the effect is limited.In 2007,the central government "No.1document" decided for the first time that1 billion Yuan special subsidy funds provided by the central who select Jilin,Inner Mongolia,Sichuan,Jiangsu,Hunan,and Xinjiang as the pilot provinces.These funds are used to subsidize the five major categories of food crop insurance for wheat,rice,maize,cotton and soybeans,and provide protection for agricultural safe production and stable farmer income.Since then,the scope of agricultural insurance subsidies to further expand,the scope has been achieved full coverage in 2012.However,does the government’s measure produce the expected benefits for the income of farmers? Based on this,we summarize the relevant domestic and foreign literatures and find that the effect of policy agriculture insurance on farmer income is different.The research methods and data need to be further improved In previous studies.Therefore,this paper attempts to use the double differential estimation of this modern measurement method.By using the DID Method creatively,this paper carries on the empirical analysis to the data of six counties in the policy agricultural insurance pilot provinces.Finally,this paper has carried out a lot of validity tests from a number of angles to verify the rationality of the selection method and the accuracy of the conclusions.The results show that the policy agricultural insurance implemented in China has improved the income growth rate of farmers about 1.765 ~ 1.818 percentage points,but this effect is lagging the effectiveness.Considering the impact mechanism of policyagricultural insurance on income,we choose the data of the affected samples in the pilot year,and found that the impact of policy agriculture insurance on the income growth rate of farmers is still significant.It can be seen that the subsidy of agricultural insurance has stabilized the income of farmers.This policy protects farmers’ production and income from falling as a result of natural disasters.Therefore,the effect of policy agriculture insurance should be confirmed.From the above conclusions,we propose a four-point policy recommendation.First,the government subsidies of agricultural insurance are necessary.Secondly,the price adjustment mechanism of agricultural products should be improved to better protect the income.Furthermore,the implementation of agricultural insurance should be combined with local characteristics.Finally,the government should expand subsidies scope and type of insurance on the basis of the original.Of course,there are still some shortcomings in this paper.First of all,First of all,our research lacks comprehensiveness because we only examine policy effects from the perspective of farmers.We do not consider the impact of premium subsidies on government expenditure,and the impact on insurance company.Secondly,this article only uses county-level data rather than micro-individual data.While this approach improves the reliability of the conclusions,it also needs to be further precise.These issues need to be addressed in the next research.