Study On Famer’s Risk Perception,Resource Endowment And Choice Of Agricultural Insurance Products

Now,the transformation of agricultural production in our country is continuously advancing.However,in today’s era,opportunities and challenges coexist.Facing complex risks and challenges,agricultural risk management is a key link in the development of agricultural production.As an important tool of agricultural risk management,agricultural insurance plays an effective role in avoiding agricultural risk,stabilizing agricultural output value and guaranteeing farmers’ income.In recent years,the variety of agricultural insurance in China is increasing,the scope of insurance is expanding,the level of insurance is improving,and the ability to resist agricultural risk is increasing.However,farmers distributed in different parts of China show different characteristics and have different resource endowments.In view of diversified agricultural production risk,farmers’ demands for agricultural insurance also have certain differences.Therefore,the government put forward the policy requirements of“Expanding surface,Increasing product,Raising standard” for agricultural insurance,and farmers have more diversified choices for agricultural insurance types.This paper studies the selection of different agricultural insurance types by agricultural production subjects so as to provide scientific basis for how to meet the needs of diversified agricultural insurances.Combining behavioral economics theory and insurance demand theory,this paper studies how the actor’s risk perception level affects the theoretical mechanism for the choice of agricultural insurance type,and how the actor’s attitude to the risks affects the theoretical mechanism for the choice of agricultural insurance type.Then,the multivariate logit model was established based on the rural survey data from 13 provinces in China.The effects of risk perception,risk attitude and endowments on the choice of cost insurance,weather index insurance,price insurance and area yield insurance were explained,and the heterogeneity was analyzed.Then,the impact of climate risk on farmers’ choice of agricultural insurance type was expanded.The main research conclusions of this paper:(1)Agricultural producers’ perception of relevant risks and their attitude towards dealing with risks will significantly affect their choice of agricultural insurance types.Producers with higher risk perception have a greater probability of buying weather index insurance.In the face of risks,producers with a preference for risks are more likely to buy cost insurance.(2)Farmers’ resource endowments are also important factors in farmers’ choice of agricultural insurance type.Individual endowments,family endowments and social resource endowments have different influences on farmers’ choices of agricultural insurance types.(3)Heterogeneity of income,scales and purchasing experience of agricultural insurance play an important role in the selection and decision-making of agricultural insurance type.For the farmer with a high proportion of agricultural income,the probability of choosing weather index insurance is more affected by risk perception than the probability of choosing cost insurance.The probability of the farmer choosing cost insurance is more influenced by risk attitude.For the large-scale farmer,the probabilitiy that risk attitude affects farmers’ choice of weather index insurance,price insurance and area yield insurance is significantly negative.For the farmer with purchasing experience of agricultural insurance,compared with cost insurance,if they are more sensitive to risk,they will choose weather index insurance,and risk attitude has a significant positive impact on the probability of farmers choosing regional yield insurance.(4)As an objective factor,climate risk has a reverse action on the choice of weather index insurance.This study lists possible recommendations:(1)Actively promote diversified agricultural insurance products,give full play to the complementary role of various agricultural insurance products,and apply innovative agricultural insurance products.(2)The supply of agricultural insurance should meet the differentiated needs of farmers,pay attention to the heterogeneous selection of farmers and regional differences of farmers,and introduce appropriate agricultural insurance products in a targeted manner.Relevant departments should also actively provide farmers with suggestions on purchasing agricultural insurance.(3)Strengthen the publicity of various agricultural insurance products,and improve farmers’ enthusiasm and initiative in insurance.