A Study On Agricultural Catastrophe Risk Diversification Mechanism Of China

Agriculture is the basic industry of China’s economy.Food security,the incresing incomes of farmers and social stability are based on sustained and stable development of agriculture.The natural disasters of our country happen frequently, distribute widely and bring serious losses.Our country has already been the country having the serious natural disasters on the world. The unit of agricultural risk is so big that its appearance can produce catastrophic losses in a short time and in a wide range.The frequent occurrence of agricultural catastrophe risk seriously destroy the development of agriculture and have a tremendous impact on China’s national economic development and social stability.How to decentralize agricultural catastrophe risk is a worthy question to consider for our agricultures and economic development.Through effective way to decentralize agricultural catastrophe risk,Complete catastrophe risk diversification mechanism enhances the farmers’ ability to resist risk and underwriting capacity of insurance company and reduces government expenditure.As a result, many developed countries make it an important government project for establishing complete catastrophe risk diversification mechanism.Our country always attaches great importance to the problem of agricultural catastrophe risk dispersion.From 2007 to 2014, the first central document referred to establishing catastrophe risk decentralize mechanism problem for eight times.Thus,it has very important practical significance to establish complete catastrophe risk diversification mechanism.At first,this article defines the concepts of catastrophe risk and catastrophe risk agriculture,and discusses the three modes of agricultural catastrophe risk diversification mechanism.On this basis,the article describes the situation and problems of current agricultural catastrophe risk diversification mechanism.Then,the essay summes up the general means of agricultural catastrophe risk diversification on the premise of referencing the successful practices of developed countries in establishing agricultural catastrophe risk diversification mechanism:increasing unit of risk,organizing reinsurance,establishing catastrophe risk guarantee fund,supporting by finance,testing index insurance and researching catastrophe risk securitization.At last,the essay put forward the general ideas that how to establish catastrophe risk diversification mechanism applied to our country,on the basis of discussing the necessity in establishing catastrophe risk diversification mechanism.To establish complete mechanisms for catastrophe risk diversification,each body should adopt what kinds of dispersion means, and learn how to effectively use these means.