A Research On Agricultural Insurance Subsidy System

China has been a big agricultural country in the world, the number ofagricultural population in2013to the latest statistics is about six hundred fortymillion, accounting for about47%of the total population.China always attachedimportance to the development of agriculture."Central NO.1Document " focus onagriculture issues in consecutive11years between2004and2014,which reflects thenational commitment to support and develop agriculture. Agricultural science andtechnology, agricultural finance and agricultural insurance are the three pillars ofmodern agricultural development. The agricultural insurance as one of them, has beenused as an important means to support countries in agriculture for a long time.In2007, China’s central government began to carry out agricultural insurancepremium subsidies pilot, lifting the curtain on rapid development of Chineseagricultural insurance. In2006, Chinese agriculture insurance income was only846million yuan. Since the implementation of premium subsidies in2007, the premiumincome between2007and2012was5.184billion yuan,11.07billion yuan,13.39billion yuan,13.57billion yuan,17.38billion yuan,240.6and30.66billion yuan.Comparing to subsidies in2006in which premium didn’t be implemented, the growthrate is higher. But at the same time, there are still many problems in China’sagricultural insurance subsidies, agricultural insurance subsidies system is imperfect,and there is a huge gap between China and the first foreign agricultural insurancecountries in the subsidy legislation, subsidies way, subsidies region and subsidies forefficiency, etc. and. China’s overall situation and the situation of economicdevelopment has led to the imperfection of agricultural insurance subsidy system,and thus hinder the implementation of the agricultural insurance subsidies as well asthe related work’s carrying out.This paper bases on the economic theory of welfare economics and asymmetricinformation theory as the theoretical basis of the study and is in a wide range ofreading a lot of literature. This paper describes the statistics of premiums, premium subsidies and the level of protection on the basis after China began to implementagricultural insurance premium subsidies pilot in2007and analyses the data on avariety of problems in the current system of agricultural insurance subsidies indepth.At the same time this paper draw the experience on the basis of foreignagricultural insurance subsidies for agricultural insurance pilot of countries. Thispaper is on the basis of the actual research as well as the basic national conditions inChina, then put forward a sound system of countermeasures to consummate China’sagricultural insurance subsidies.