The Study On Willingness To Pay For Citrus Policy Insurance Of Farmers In Chongqing

China is a big country of citrus production, citrus productivity and area both rank first in the world. The citrus trees are woody perennials, unlike annual crops. It has unique natural features, and its production changes as the tree get older. Citrus production like other crop production is subjected to the threat of natural disasters. In Chongqing City drought, frost, pests and diseases are the most severe natural disasters in citrus production. Different levels of economic losses brought about by natural disasters, will have a negative impact on citrus production and daily life and thus weaken the citrus farmers’ enthusiasm of the planting citrus. But at present in citrus production disaster compensation is still in the blank, only Chongqing City launched a policy-oriented insurance pilot of the citrus production.In order to understand the acceptability and willingness to pay of citrus agricultural policy insurance we launched the questionnaire survey in Jiangjin district, Zhong County, Kai County and Fengjie County to get the research data required.150survey questionnaires were distributed and124were valid. In the survey, the survey team also visited the management departments of Chongqing City Fruit Research Institute, the navel orange Bureau of Zhong County, to understand the overall development of the citrus industry in Chongqing Municipality and citrus policy insurance carried out in Chongqing and collected nearly a decade of Chongqing citrus production area and yield data, obtained the basic data of Chongqing citrus production and risk zoning.This article first used the citrus production area and yield data of39districts and counties of Chongqing City in recent decades and classified these39counties as high risk areas, high risk areas, medium risk regional and low-risk areas. We chose five indexes to evaluate and classify the degree of risk in the39counties, these indexes are coefficient of variation of citrus yield, the probability of citrus yields to cut by10%, the probability of citrus yields cut by20%, citrus production specialization index, citrus production efficiency index.The39counties are classified as high-risk areas, less high-risk areas, medium-risk areas and low-risk region. Clustering results show that19counties are high-risk area, which means the generally higher risk of citrus production in Chongqing Municipality, and there is a need to take measures to scatter the risks.Citrus policy of insurance played as a risk transfer instruments, In order to understand the citrus farmers’ awareness of this tool and their acceptability, we made use of the data to research the factors that affected the citrus Farmers’ willingness to pay. The binary logistic regression is the method we use. We selected age, education, citrus acreage, total household income, the proportion of the total revenue of citrus, citrus trees yield ratio, the loss of citrus production in the last three years due to natural calamities, risk prevention, the cognition of importance of the citrus policy insurance, the understanding of citrus policy insurance, as well as understanding of the subsidy policy of citrus policy insurance, in all11factors as independent variables, the regression results show that the citrus farmers’ risk awareness, awareness of the importance of insurance, awareness of the insurance subsidy policy are he most significant factors affecting their insured wishes.In this paper, weighted average method, median method, and the spike model approach are three ways to calculate the citrus Farmers’ average willingness to pay for citrus policy insurance, we obtained the average willingness to pay for an acre of citrus trees is between the33.33yuan and42.9yuan, higher than the current level of premiums which is20yuan/acre.Then we drew relevant conclusions and put forward some policy recommendations.