A Study On The Factors Influence The Payment Of Agricultural Insurance

As a fundamental industry of the national economy, agriculture’s development affects the national economy’s development directly. Meanwhile, agriculture is a feeble industry, and farmers’output in agricultural faces numerous natural disasters and other risks. However, smallholder farmers mainly on decentralized management, which result Chinese farmers’risk transfer ability was very small. Therefore, how to mitigate the impact of natural disasters on farmers has become an inconvenient issue when promoting the new rural construction. So farmers need a kind of risk management mechanism to transfer agricultural risk and share the economic lost. The agricultural insurance is precisely the risk mechanism that Chinese farmer urgently needed.What’s more, agricultural insurance is one of the "green box’ policies which World Trade Organization allows every country to support, and it is also an important protective measure of ensuring the nation’s stable development of agriculture and the rural. Therefore, China should vigorously promote agricultural insurance. But before agricultural insurance carried on in whole country, which factors are affecting the farmers’payment of agricultural insurance is the question that should be solved at present. In addition, Zhejiang province is an agricultural disaster-prone province, it suffered hundreds of millions economic losses from the natural disaster each year. Frequent disasters not only brought tremendous difficulties to the majority of farmers, but also hindered the economic development of rural areas. Therefore, by analyzing the agricultural insurance of Huzhou, Zhejiang Province, from point to surface and small to large, we can see what influence the purpose intention of the peasant about it.The aims of this essay are to study the factors which influence the payment of farmers’desire of agricultural insurance, under the guidance of agricultural insurance-related concepts and theories. Depending on the nature of agricultural insurance and the realities of Hu Zhou, Zhejiang province, the essay analyzes the factors which affect the farmers’ payment of agricultural insurance mainly from two parts:that is social security factors and farmers’own factors. At the empirical part, we adopt the questionnaire data which generated from December2013to February2014, selecting five easily quantified variables, applying the econometric empirical logistic regression model to analyze, analyzing the factors that influence the farmers’payment of agricultural insurance from the empirical results. At last, this essay also comes up with some relevant proposals from three aspects:the government, the insurance companies and the farmers, to vigorously promote the development of China’s agricultural insurance.