The Effects Of Agricultural Insurance On Food Production

The large-scale implementation of Crop Insurance in China has been more than fiveyears. During this period, Crop Insurance is heavily subsidized by the Government, andnow it is the third large insurance only less than motor vehicle insurance and commercialproperty insurance. However the combined effects of Crop Insurance require amultifaceted, multi-angle assessment. Because the grain production is very important, thepaper studies the impact on food production.In this paper, the mathematical modeling are based on the production function andexpected utility theory and the marginal analysis techniques. In the process, some of theassumptions of the basic model are gradually relaxed. The single output productionfunction is extended to a multi-output production function. On the basis of the generalequilibrium conditions, the effects of agricultural insurance on food production, acreageand structure, pesticides and fertilizers, and other factors are discussed. It is very complexthat the impacts of agricultural insurance on pesticides, fertilizers and other input factors.We cannot draw definitive conclusions. We need to analyze the actual situation. Subsidiesfrom the government increase the number of farmers who participate in agriculturalinsurance. In Chapter IV, this article discusses some factors that are not included in themodel. In addition, the empirical analysis of agricultural insurance on grain yields andacreage is made with the data from Suzhou. We draw that the agricultural insurance has anegative impact on rice acreage in Suzhou area.