Fiscal Subsidy System Research On Policy-oriented Agricultural Insurance In Shaanxi Province

Shaanxi Province is a big agricultural province,As a less developed western provinces,Natural disasters make great impact on disaster-prone agricultural activities of farmers. As an effective means of agricultural risk defense, Agricultural insurance stabilizes the agricultural industry and agricultural production. Testified by theoretical arguments, agricultural insurance has the characteristics of quasi-public goods. Spillover of the positive externalities causes the farmers and insurance companies are not willing to participate in agricultural Insurance. Government subsidies can promote the development of agricultural insurance. In 2004,Shaanxi Province begun to carry out Pilots of Policy-oriented agricultural insurance, now it's been six years .Nowadays, Policy-oriented agricultural insurance have been carried out in many cities and counties and has run very well. But in the process of development there are still some problems about efficiency and equity.This article draws government subsidies experience of agricultural insurance from domestic and foreign counties. Combined with government subsidies experience of agricultural insurance carried out in Shaanxi Province, sum up deficiency of Shaanxi provincial government subsidies of agricultural insurance.1 there is three types of insurable earnings which are meant to insure the cost, the output and the income. In Shaanxi Province Agricultural Insurance companies are carrying on guaranteed cost as the payment standard. Even the total loss of agricultural insurance case was claimed that the amount of the payment is only tens of dollars more than premium .Compared with other Property insurances, Agricultural insurance is different on that Agricultural output is mainly due to the survival of farmers from the cost of living. It is hard to maintain survive of farmers to just insure the cost. It proposed to increase the strength of government subsidies.2 According to the standard of Hazard rating Shaanxi Province will be divided into four different regions, using the extended linear expenditure system model to analyze farmers' payment ability of each disaster district. According to these two factors, solve the problems of same ratio of premium in different areas. Improve the efficiency of financial subsidies.3 Based on both analyses; optimize Subject, object subsidies, allowances and funding. Etc of existing system of governmental subsidies and construct new system of governmental subsidies of policy-oriented agricultural insurance, which is meant to make some theoretical guidance to policy-oriented agricultural insurance in Shaanxi Province.This thesis also proposed a number of policy recommendations in order to solve some problems encountered by Policy-oriented agricultural insurance or give some recommendations.