Empirical Analysis Of The Impact Factors Of Pig Insurance

China is a traditional agricultural country. The output of the livestock breeding accounts for35%of total agricultural output value. The pig industry occupies a very important position in the livestock breeding. It is the important component of the non-staple food supply project. However, in recent years, the pig epidemic disease is increasing year by year, the price came to an alternation between rise and decline. The cost of feed and labor goes up ceaselessly. Farmers have to facing the difficult position---high risk, high investment and small gains.Especially in recent years, with the price of pork fluctuate frequently and greatly, the price of food led by pork increase continually, the consumer price index (CPI) rose sharply. As an important part of the basic life of consumer spending, the fluctuations of pork price not only directly affect consumer spending on food and the change of price level, but also affect the improvement and stability of income of the farmers.Therefore, how to stabilize the price fluctuation in the market, stable market supply, has become the focus of pig farmers, consumers, scholars and government departments concerned, In this regard, the government put forward the policy of the pig insurance, in order to improve the ability of farmers to cope with disease risk and market risk and other risks. During the development of pig insurance, all kinds of factors that impact farmers to buy pig insurance should be comprehensively analysis, in order to maximize the farmers’ willingness to participate.SongZi has become the "campion" county of Hubei Province on the number of slaughtered fattened hogs as early as1996. Recently, it also become the members of the first group of transfer-out hog county of China. Hog Production has become half of SongZi s agriculture.With the large quantity of pig breeding and turn-overing,the chances of disease transmission is very high. Once there was a disease outbreak,it is difficult to deal with the risk if rely only on the government’s unpaid assistance. Under the circumstances, government departments at all levels paid much attention to launch the commercial Pig Insurance. Great achievements have been made since the development of the work,but there are also a lot of problems.Firstly, this paper summarizes the research results of domestic and foreign literature. On the basis of public goods and the nature of moral risk economics theory of rational economic man, risk attitude, agricultural development of the pig insurance through the theoretical analysis, draw the conclusion--the current implementation of the policy of the pig insurance is very necessary.Secondly, the paper investigated the main factors influencing the farmers’ willingness to purchase the pig insurance. According to the economics theory of supply and demand, the decision model of the farmers in the face of the purchase of pig insurance were analyzed.The main factors that influence the farmers to buy the pig insurance will be non price factors. Against this background, using the75questionnaires from the Jieheshi Town, Sijiachang Town, Nanhan Town, Liujiachang Town, Babao Town of Songzi City, we have established the ordered choice model. From the perspective of pig farmers,and conducted the empirical research of the willingness to join the insurance. The analysis will be presented in the following five aspects---the willingness to join the insurance,base situation of the farmer, family characteristics, risk awareness and understanding of insurance and the policy of pig insurance.Then, on the basis of the above analysis, the following conclusion are as follows:First, the subsidy policy can greatly improve the willingness of the farmers to buy the pig insurance. The farmers are rational "economic man",facing the risk of pig breeding condition, the goal of the pursuit of the farmers behavior is to get the maximum benefit.In the face of moral risk under the condition of market failure, as a quasi-public goods nature,the pig insurance need government intervention to better promote the development in good health.Second, many farmers don’t have a good understanding of the pig insurance, and some even do not know, do not have a strong desire to buy.Third, the high age of farmers, the low level of education and the scale of the process hinders the scale of the progress of pig breeding of Songzi. Compared with the past few years, the quantities of backyard farmers have significantly reduced. Many farmers choose to give up the pig feeding. Although when the farmers choose pig feeding,the herds compared with the previous are greatly increased. But farmers in general older age and low educational attainment are not conducive to scientific farming, not conducive to the promotion of standardization, large-scale pig farming.Fourth, the insurance company in the adjustment process is complex and not timely and the period of insurance is too short to other factors affecting farmers willingness to purchase insurance of pigs. On the one hand, under the propaganda promotion from the epidemic prevention station and animal husbandry station,it is necessary to energetically develop the pig insurance,account for more than90%of insurance rate. It has remarkable achievements.On the other hand, because of complexity of claims not timely, the period of insurance is too short for reasons still causing some farmers do not want to participate in the insurance. Fifth,the research finding showcases that the educational level,trust for insurance company and whether to get the subsidies granted for policy considerations have a significantly positive correlation with the willingness to join the insurance. While, the proportion of income from breeding pigs of the total net income has a significantly negative correlation with the willingness. Age, breeding scale, the loss rate of breeding, the attitude of disease’s influence, the understanding of the pigs’insurance do not have significant correlation, but have a positive influence upon the willingness. Annual Per capital income of the family doesn’t have significant correlation with the willingness but still exerts negative influence.Finally, on the basis of previous analysis,the paper puts forward the policy suggestions to promote the development of the policy of the pig insurance.The pig insurance subsidies should be increased and earnestly provide to the farmers, the propaganda offensive should continue to strengthen and pay attention to the social benefiting policy of pig insurance. Farmers should be organized to learn the relevant regulations of pig insurance,in order to enhance awareness on pig insurance and improve their intention. The support of policy should be increased,the government gives the subsidy of the construction cost of pig farm.In the suitable pig farming area, development of ecological farming.standardized farming, large-scale farming.Support energetically the graduates just from the agricultural technical school or Kasetsart University, engaged in large-scale pig farms, and to give policy support. To develop agriculture through science and technology, for the farmers of Songzi area generally affected by low levels of education, the local government departments can set up a technical service team, specialized in agricultural extension activities. Provide professional knowledge training of pig breeding for farmers, helping farmers to answer the common problems in the breeding process and so on, in order to improve the ability of prevention and emergency retail general blight and the scientific breeding level of the professional farmers. Aiming at the problem of complexity of claims should not timely, appropriately increasing the township economic treatment and office staff and primary staff of the pig insurance, to improve working conditions, reduce claims time, improve settlement efficiency, let the farmers get coverage, let farmers pay more trust in insurance of pigs.