A Study On The Financial Support For Agricultural Insurance In China

Modern agriculture is faced with various severe risks of business day by day. The sustainable development of agriculture is especially threatened by the seriously natural calamities that take place frequently. As an important economic compensation system, agricultural insurance has the function that can't be ignored in stabilizing agriculture and increasing peasant's income. But agricultural insurance in our country is in a trend of shrinking at present, which is unfit for the status of the agriculture development in China, and not suit with the fierce international market competition of agricultural product, too.An important reason why the development of agricultural insurance in our country has been in low-level state of all the time is the lack of financial support of the government. The properties of agricultural insurance determine that it must be a kind of policy insurance, and it is impossible to seek the outlet from the commercial management of the insurance companies. The policy support of the government especially the financial subsidy is its requirement of smoothly development. But in China, agricultural insurance has been run concurrently by the commercial company all the time. Except that business tax is free, there are not any supports else of government. Although the importance of the agricultural insurance of the financial subsidy has already got the general concern theoretically at present, but the concrete thinking of subsidy has not taken shape yet, so has not the practical operation scheme. In this case, there are important realistic meanings in promoting the fast development of agricultural insurance even the whole agricultural production from drawing lessons from the subsidy mode of the foreign agricultural insurance and search for the effective way of financial subsidy for it in our country.This text is divided into six parts:Part 1 introduces some basic conception of the agricultural insurance, and point out its essence characteristic and important function. It also analyzes the development state of agricultural insurance in our country, which also analyze the reason to cause this situation from peasant, insurance company and government. Finally the conclusion that agricultural insurance need government's support is educed.Part 2 analyzes the financial subsidy of agricultural insurance by economic theories. It explains the accurate public products attribute of the agricultural insurance, and validates the conclusion described above through market balance theory of micro economics and the game theory analytical method.Part 3, which summarize the kinds of financial support for agricultural insurance in foreign countries, and some references and enlightenments have been got from their...