Empirical Study On The Influence Of Policy-oriented Agricultural Insurance On Farmers' Income

China began to implement policy-oriented agricultural insurance programme from 2007 nationwide.It has aroused the enthusiasm of farmers for insuring by subsidizing,so agricultural insurance has maximum benefit effect.At the same time,the central government attaches great importance to the policy-oriented agricultural insurance.The Central Document No.1 which is released from 2004 to 2018 pays attention to policy-oriented agricultural insurance,and the government makes relevant policy to guide the development of policy-oriented agricultural insurance every year.Nowadays policy-oriented agricultural insurance is very important for supporting agricultural development and increasing farmers' income.Many scholars have studied the influence of policy-oriented agricultural insurance on farmers' income,and the results are different.This article analyzes the influence of policy-oriented agricultural insurance on farmers' income by comparing the results of before and after the implement of policy-oriented agricultural insurance in 2007 from basic mechanism,indirect mechanism,and expansion mechanism,and this is the innovation point.The three mechanisms are:(1)basic mechanism: the influence of policy-based agricultural insurance on the income of farmers through the diversification of agricultural production risk;(2)indirect mechanism: policy-based agricultural insurance influences farmers' income by adjusting the planting structure.That is,the impact of policy-based agricultural insurance on the planting structure of food crops,and whether the change in the planting structure will increase the income of farmers;(3)expansion mechanism: policy-based agricultural insurance influences the income of farmers by increasing the mechanization degree of agricultural production.That is,the impact of policy-based agricultural insurance on the mechanization degree of agricultural production and the change of mechanization degree of agricultural production to peasant household income.Through analyzing of the panel data of 31 provinces in China from 2002 to 2016,we know that policy-oriented agricultural insurance has promoted the increase of farmers' income among 3 mechanisms.Under direct mechanism,it can increase farmers' income by disperse the risk of agricultural production.Under the indirect mechanism,it increases cultivation of three major grain crops(rice,wheat,corn),but decreases cultivation of the soybean,and there is no effect on cultivation of potato crop,and these changes increase farmers' income.And propose several policy proposal according the empirical results,innovation policy agricultural insurance products,pay attention to the subsidies of policy-oriented agricultural insurance and increase protection level,guarantee the development of policy-oriented agricultural insurance through the legislation.