The Research Of Policy-oriented Agricultural Insurancein Liaoning Provence

Liaoning Provence has been in the important historical period of transition from traditional agriculture to modern agriculture. As the fundamental industry of the national economy, agriculture is a relatively weak industry, and the abilities of farmers to resist disasters are still rather fragile. With varieties of nature and market risks in the process of agricultural production, there are more uncertainties in the development of agriculture. Under the premise that the impacts of natural disasters on agricultural production can not be fundamentally changed, agricultural insurance plays an irreplaceable role in the stability of agriculture production and increasing farmers’ income. However, the development of agricultural insurance has always been in a low state in Liaoning Provence, which is not commensurate with the status of C hina’s agriculture development as well as the increasingly fierce competition in international markets for agricultural products.Practices of domestic and foreign agricultural insurance show that the successful development of agricultural insurance can not be separated from the government’s support. Although the importance of financial subsidies for agricultural insurance from the Government has been concerned extensively, there has neither been a specific thought of subsidies nor the actual operation of the program. In this case, we should learn the experiences of foreign financial subsidies of agricultural insurance, compare and analyze the subsidies models for the pilot re gions to explore an effective way of agricultural insurance program for Liaoning Provence,which has important practical significance to promote the policy-oriented agricultural insurance.In this thesis, firstly we analyzed the reasons for the limited demand and supply in agricultural insurance market, to provide a theoretical basis for financial subsidies for policy-oriented agricultural insurance respectively using the phenomenon of market failure in agricultural insurance and the welfare economics of financial subsidies for agricultural insurance. Secondly, this article selected three representative nations and four experimental regions to analyze the financial subsidies model for the policy-oriented agricultural insurance, and differences of these subsidies models from the principle of subsidies, the pattern of subsidies as well as scope and the proportion of subsidies, and eventually got the problems in the current financial subsidies for policy-oriental agricultural insurance in Liaoning Provence.Finally, it concluded through a rational institutional design to maximize the effectiveness of financial subsidies for policyoriented agricultural insurance, and achieve the target of the government to support agricultural development and increase the farmers’ income.