Analysis Of Fattening Pigs’ Willingness To Pay

Though transfer and risk diversification, pig insurance enhances the farmers’ ability to withstand natural risks, improves the level of pig farming operations and reduces the risk of pig breeding, in this way it always improves farmers’breeding confidence to ensure the effective supply of the market to a certain extent. Nevertheless farmers’lack of effective demands for fattening pigs insurance, it can’t meet insurance run requirements namely the law of large numbers. Therefore it needs to ascertain farmers’actual willingness to pay for fattening pigs insurance and its influencing factors to gradually increase its rate and meet the requirements of insurance operation, finally to promote the sustainable development of the pig insurance.This study treats fattening pigs insurance as a research object and empirical research on the farmers’willingness to pay. On the base of reviewing research progress of agricultural insurance and pigs insurance home and abroad in recent years, this paper learns from the theory of public goods properties, expected return theory, insurance risk theory and CVM principles of economics to analysis of the overall situation and the problems of the development of pigs insurance in Sichuan Province. It always uses contingent valuation method and Probit model to study farmers’ willingness to pay for fattening pigs insurance and the effect factors. And thus this paper’s purpose is to provide useful lessons to improve fattening pigs’level of insurance coverage and enhance farmers insured wishes and optimize pig insurance system.The main conclusions of the study:(1) Sichuan Province has made considerable development in fattening pigs insurance, but there are still many problems in the concrete implementation of the process, for example insurance terms and conditions are set unreasonable, farmers are lack of enthusiasm and the insurance companies are not enthusiastic.(2) Farmers have low awareness of pig insurance.65.236%of farmers have willingness to pay for fattening pigs insurance and the most concentrated interval is [10,15]yuan/tou, while the willingness to accept is[1000,1200] yuan/tou.(3) The main factors that influencing farmers’willingness to pay are level of education, raising capacity, pig degree of specialization, awareness of pig insurance, trust in government as well as whether to participate in economic organizations.According to the research findings, the following policy recommendations are put forward.(1) The propaganda of pigs insurance should be strengthened and farmers’insured enthusiasm should be raised.(2)The insurance terms should be perfected. It’s appropriate to raise premiums and sum insured and to simplify the claims process.(3)It’s also should support pig specialized cooperatives and encourage farmers to join.(4) Fattening pigs insurance subsidies should be increased.