Feasibility Study On Xinjiang Cotton Price Insurance

As an important raw material for China's agricultural products and textile industry,cotton is of great significance to the development of agriculture,rural areas and even the domestic economy.Xinjiang is an important commodity cotton production base in China.In 2017,China's total cotton production reached 5.486 million tons,Xinjiang cotton production reached 4.008 million tons,and Xinjiang's cotton production accounted for nearly 74% of the country's cotton production.The stability of the cotton industry in Xinjiang plays a decisive role in China's cotton market.Not only does it have a bearing on the healthy development of Xinjiang's agricultural economy and the continued increase of farmers' income,it is also a social issue that deserves attention and is of great significance for the maintenance of border stability.The article starts with the shift from cotton target price subsidy policy to cotton price insurance,and analyzes the feasibility of cotton price insurance in Xinjiang using institutional economics,behavioral economics and other related theories.Firstly,based on the cotton subsidy policy,this paper analyzes the existing weaknesses of the target price subsidy policy and the necessity of implementing cotton price insurance.Based on this,it explores the feasibility of reforming cotton price insurance under the target price subsidy policy.This article is based on the economic,management,technical feasibility and supply and demand theory.It analyzes the feasibility of cotton price insurance from an economic perspective,a management perspective,and a technical perspective,and adopts a dual Logit model to verify the feasibility of cotton price insurance.Farmers' factors were used for empirical analysis.ARCH and its expansion model were used to study the Chinese cotton futures market.Then the interview method was used to analyze the influencing factors of the introduction of cotton price insurance by insurance companies.Since the cotton price insurance insured objects are living plants,Because of the features that ordinary commercial insurance does not have,it is necessary to comment on barriers to the implementation of cotton price insurance.Finally,put forward corresponding policy recommendations to provide guidance and reference for China's cotton macroeconomic policy formulation.The main conclusions of the article are: First,cotton farmers choose to purchase under the cotton price insurance model.Farmers are supportive of cotton price insurance,and the implementation of cotton price insurance policy is feasible.Second,government policies that provide appropriate and effective stimulus and support to cotton farmers can positively influence the choice of cotton farmers and effectively achieve the desired objectives of the policy.Third,in the context of optimising the reform of the cotton price subsidy policy,the state's supportive attitude toward insurance companies implementing cotton price risk behavior can positively influence the insurance companies to issue cotton price insurance.Fourth,the combination of the agricultural product market and the financial service industry can advance the reform of the national agricultural supply side and accelerate agricultural modernization.Fifth,the rational formulation of the macroeconomic control policies for cotton will play an important role in the healthy and sustainable development of the cotton industry in Xinjiang.