Analyze The Effect Of Policy Agricultural Insurance In Our Country To Promote Rural Economic Development

Policy agricultural insurance is an important sustaining policy for agriculture to support the agricultural development in our country, which can increase farmers’ income and maintain stability of the countryside. It is a newly set policy after lots of policies such as, cancellation of agricultural tax, direct subsidies to grain producers, subsidies for growing superior seed varieties, general subsidies for purchasing agricultural supplies. Its implementation escorts the farmers who are lack of experience and economic base. In recent years, our country’s agricultural insurance develops rapidly, expands coverage steadily and increases risk guarantee ability. It plays a positive role in the disaster relief and post-disaster reconstruction. Since 2007 when the central government introduced policy agricultural insurance on a trial, our government transfers a large amount of capital investment to agricultural insurance subsidies every year, which promotes the leap-forward development of agricultural insurance, and strengthen agricultural insurance’s effects in guarding against and dissolving the risk of agricultural production, stabilizing farmers’ income, financial poverty alleviation, and ensuring the rural economy steadily rise.This article mainly inspects that the Chinese government spends a lot of money to support the development of agricultural insurance, and analyze whether agricultural insurance have played an important role in promoting rural economic development. This paper expounds the related theory about the agricultural insurance effect research, combed the main development of agricultural insurance course, and summarizes the achievements of agricultural insurance. Then through the normative research analysis this paper analyze the effect of agricultural insurance such as, promoting agricultural industrialization, stabilizing farmers’ income, effect of green box policies, and the problems during its process. This paper combined the empirical analysis to verity the promoting effect of agricultural insurance for rural economic development, and selected the first industrial added value, agricultural insurance premium income and the indices such as reparations.In this paper, the empirical analysis indicates that agricultural insurance premium income and reparations spending have a long-term stability positive effect on the added value of primary industry. At the same time, the reparations contributed most for the model, it shows that reparations is the key variable in the model, and reparations reflected the protection effect of agricultural insurance to the agricultural production, which means that agricultural insurance can promote the agricultural production, stable the farmers’ income, and promote the rural economic development obviously.In this paper, based on the results of the normative analysis and empirical analysis, put forward suggestions about how our country’s agricultural insurance to further promote rural economic development, provide some reference about the development of agricultural insurance and how to play its risk safeguard function role.