Agricultural Insurance Welfare Under Conditions Of Government Subsidies

Our country is not only a large agricultural country, but also a natural disaster-prone country. There is severe loss of agricultural production due to natural disasters every year. Rapeseed is the most widely distributed range of oil-bearing crops. Its production affected by natural disasters, so farmers suffered losses. Countries want to build market-oriented crop production risk insurance system, to enhance the ability to resume production of the staple crop disaster. China has gradually established agricultural insurance system since 2007, including canola insurance premium subsidy system.Can the policy that canola insurance premium subsidy system increase social welfare has become the focus. This paper start from the two situation that before the implementation of canola insurance premium subsidy system, the supply is restricted and not restricted, by comparing the change of the farmers welfare and social welfare before and after the policy was implemented, to investigate the of effect of canola insurance premium subsidy system.The main conclusions are as follows:When the canola insurance supply is not restricted without the premium subsidy, while this policy allows canola growers welfare increase, but the cost of the implementation of the policy is greater than the increase of rapeseed growers welfare. But the policy can promote the construction of agricultural insurance system, and can maintain production stable, so it is believe that this policy can improve social welfare. When the canola insurance supply is restricted without the premium subsidy, there is no social welfare, but the implement of the policy achieved social welfare. The increase social welfare is greater than the cost of subsidies, so it is believe that this policy can improve social welfare. All in all, the policy can increase social welfare.