Research On The Impact Of Agricultural Insurance Protection Level On Rural Residents' Consumption In China

Agriculture is the foundation of a country's national economy.The fragility of agricultural production determines that agricultural insurance will gradually become the main source of funds for farmers' compensation for losses and agricultural reproduction(Song Ting,2017).Compared with other industrial sectors,agriculture not only faces natural risks in the production process,but also bears the impact of market risks.The agricultural insurance can guarantee the development of China's agricultural production and promote agricultural modernization and industrialization.It is one of the effective tools for agricultural risk management under market economy conditions.Since the full implementation of policy-based agricultural insurance in 2007,the country has been giving policy support to agricultural insurance business operations.Agricultural insurance has also achieved major breakthroughs and development.Agricultural insurance is decentralizing agricultural risks,restoring agricultural production,and ensuring farmers' income.The aspect has played a positive role.Agricultural insurance can protect the income of rural residents while affecting the consumption of rural residents.Therefore,research on the level of China's agricultural insurance and its impact on the consumption needs of farmers is of great significance for stabilizing the income of rural households,improving the level of agricultural insurance protection,and promoting the consumption of rural residents in China.This article is based on the policy of agricultural insurance as a state-planned policy.It provides a kind of guaranteed income through subsidies for government agricultural insurance premiums and post-disaster insurance payments for insurance companies,which can increase rural residents' propensity to consume.Study the impact of agricultural insurance on rural residents' consumption,and applying China's 2004-2016 On the provincial panel data of 30 provinces,the level of agricultural insurance protection in each province was calculated,and the current status and regional differences of China's agricultural insurance protection level were analyzed.Finally,the relationship between the level of agricultural insurance protection and rural residents consumption were examined through panel threshold regression model and mediating effects.The research results show that: the government's agricultural insurance premium subsidy and the insurance company's insurance compensation can,to a certain extent,reduce the future income fluctuation of the farmers through the income stabilization effect;directly increase rural household income through the income increase effect;improve the overall rural income level through the income distribution effect.which will play a role in stimulating rural residents' consumption and expanding the rural consumer market.The income of the farmers plays a full mediating role in the impact of the level of agricultural insurance protection on the peasant households' consumption.That is to say,the level of agricultural insurance protection affects the income of rural households and then affects rural residents' consumption.However,because China's current agricultural insurance mainly provides risk protection for losses caused by natural disasters in the agricultural production process,there is basically no guarantee for market risks or price risks in agricultural production and management(Song Ting,2017).At present,the type of agricultural insurance in China is mainly to guarantee the cost and ensure the output.It is less concerned with the protection of the price fluctuation risk of agricultural products,and it does not even involve the agricultural insurance varieties that guarantee the income level of the farmers.Therefore,the level of agricultural insurance protection is generally low.At this time,the insurance coverage provided by the insurance company after the disaster is only the cost incurred by the farmers in the production process,rather than the protection of the farmers' expectations of their future income.The economic compensation of insurance companies is also far less than the farmers' expectations of their future income.Agricultural insurance is not strong enough to protect China's agricultural production income and promote rural residents' consumption.Based on this,we propose the following policy recommendations: strengthen government support and promote the development of agricultural insurance for rural residents;continue to innovate agricultural insurance products,meet the diverse needs of farmers for risk aversion,increase the level of agricultural insurance protection;Strengthen publicity and education,change farmers' traditional concepts of consumption and their understanding of insurance,and promote rural residents' consumption.