Effect Of Agricrultural Insurance On Farmers' Income

Agriculture is the basis of the national economy and the development of the country's economy and the stability of the society.But agriculture is faced with a variety of risks,which greatly hinders the development of agriculture and affects the production and life of farmers.Through the establishment of risk transfer mechanism,agricultural insurance can help farmers to avoid risks,reduce losses,promote agricultural production and increase income,and improve the income of farmers.In 2004,the "No.1 Central Document" proposed the establishment of policy based agricultural insurance for the first time and launched a pilot project.In 2007,China began to subsidize agricultural insurance,and the agricultural insurance market in China was gradually growing.In 2017,the "No.1 Central Document" put forward that we should push forward the structural reform of the supply side of agriculture.Besides the traditional agricultural insurance,it was the first time to put forward the new agricultural insurance,such as land transfer guarantee insurance,Internet insurance and so on.In 2018,the No.1 document of the Central Committee put forward the agricultural support and protection system again,and launched the pilot project of complete cost insurance and income insurance for the three major grain crops of rice,wheat and corn nationwide,and set up a multi-level agricultural insurance system.The income of the farmers has been the focus of attention of the problem of agriculture,farmers' income directly affects farmers' consumption level,how to increase the income of farmers,improve the living standards of farmers,promote economic development,social security has become the most important of the long period of stability problems for the state and the government.Agricultural insurance as an important means to protect the farmers' income,the loss compensation reduces the loss of farmers,ensure the continuous production,therefore,the research of agricultural insurance effects on Farmers' income for a clear understanding of the role of agricultural insurance and agricultural insurance plan for the future direction of development has important significance.This paper firstly introduces the background and significance of the study,uses the welfare economics theory and the non equilibrium theory to analyze the agricultural insurance market.Then I study the country and Eastern Western Regional Agricultural Insurance and farmers' income and development situation,analysis of the regional differences and connections.The paper uses panel data of 2007-2015 years in 30 provinces in China to study the spatial spillover effect of farmers' income,and the relationship between the income of agricultural insurance and farmers to make regression static panel regression and spatial econometric model,calculates the impact on income of agricultural insurance and farmers from the space dimension.At the end of this paper,according to the theoretical and empirical research results,the policy suggestions and suggestions are put forward in accordance with the reality of our country.After the study I found that,without considering the spatial factors,agricultural insurance has a positive effect on the income of the farmers;considering the spatial factors,it can be found,the income of the farmers has a strong spatial correlation,and the level of agricultural insurance in the space range of the neighboring areas of farmers'income has a positive effect.This shows that the development of policy based agricultural insurance can promote the increase of agricultural output,and then promote the increase of farmers' income,and ensure the living standard of farmers.According to the current development of agricultural insurance,China should increase the development of agricultural insurance,improve the system of reinsurance and catastrophe insurance,strengthen cooperation among regions,and jointly plan the way of future agricultural development.