Research On Influence Of Interaction Between Agricultural Insurance And Aagircultural Credit To Farmers' Income

Our country's agricultural population accounts for 70% of the total population.But income of the farmers in the lowest.Up to now,issues of agriculture are big problems of our country.Among them,rural finance is an important link to solve the problems of farmers.Although since reform and opening up,China's rural financial system has larger change,but the low efficiency of credit allocation problem is not completely improve,rural financial services and the farmers' demand there is still a large gap.As of 2014,according to the China rural financial services report,the financial institutions' agricultural loans is only 28.2 trillion,farmers' loans are 7.47 trillion of all.Farmers generally say it is difficult to apply for a loan.There are two reasons for this: on the one hard,China's rural credit environment is missing,farmers lack ideas about credit;one the other hand,the tur al financial market is a market of information asymmetry.Because of the lack of credit collateral,the financial institutions cannot accurately estimate farmers' ability to repay their loans,so they must reduce the supply of their loans.Therefore,China's current agricultural credit supply cannot meet the demand of economic development,which will inevitably hinder the growth of farmers' income.So study the relationship between agricultural credit and agricultural insurance,discusses the interactive effect on farmers' income growth for deepening the rural financial reform and innovation has certain theoretical significance and practical value.This paper focuses on the effect of agricultural and rural loan interaction on farmers' income.Research contents are as follows: First,study on the interaction between agricultural insurance and agricultural loans,and mainly analyzes the influence mechanism of agricultural insurance and agricultural loan interaction on farmers' income.Second,the basic situation of agricultural insurance and agricultural loan in Zhejiang province is investigated.First preliminary descriptive analysis of survey data,the preliminary specification farmers for agricultural insurance affects the overall point of view of agricultural loans availability,understand the main way to apply for a loan and loan of the main causes of difficulty.Secondly using the Logistic regression model,analysis of agricultural insurance from four aspects of the influence of agricultural loans availability,at the same time consider age,cultural level,the cultivated land area,source of income,agricultural income accounted for other factors,etc.Thirdly,empirical study on the effect of agricultural insurance and agricultural interaction on farmers' income.In this paper,entropy method is used to determine the weight of explanatory variables and obtain the comprehensive score of agricultural insurance and agricultural credit index.Using principal component analysis method to determine the comprehensive index of control variables,and adopts VAR model analysis of agricultural insurance,agricultural credit influence on farmers' income.Then into the error correction model analysis of agricultural risks agricultural loan interaction effects on farmers' income.Fourthly,based on the research results and the empirical analysis results,the countermeasures and Suggestions for promoting agricultural and agricultural loan interaction are proposed from the three levels of government,insurance institutions and credit agencies.This article introduced the farmers' income is as explained variable,fully considered for the relevant indexes of explanatory variables and the influence of control variables.Using VAR model and error correction model to empirical research,and the questionnaire analysis method,proved the interaction between agricultural insurance and agricultural credit from the side.