The Study On The Influence Of Agricultural Insurance On Farmers' Income In China

It is agriculture that is the foundation of whole countryman economy and the existence of economic sectors.Therefore,the state must attach importance to the development of modern agriculture.Agricultural production and management have the characteristics of high risk and high cost.As an effective tool to disperse agricultural risks,agricultural insurance can reduce the loss of farmers' income caused by disasters and promote the development of rural economy.At present,agricultural modernization,a new kind of agriculture development mode and the steady and continuous increase of farmers' income are the key and difficult point of rural economic development in China.In order to accelerate the transformation of China's new type of agriculture,promote the sound development of rural finance and increase the income of farmers,we should fully utilize agricultural insurance as an effective tool for diversifying agricultural risks and reducing the loss of farmers' income caused by disasters.Chinese agriculture is now transferring from traditional to new.In this critical period,how to play the role of agricultural insurance in promoting farmers' income is a hot topic in academic circles.It is of great significance to study the impact of agricultural insurance on increasing of farmers' income to boost the development of rural economy and advance the process of agricultural modernization.This paper analyzes the impact of agricultural insurance on Farmers' income with empirical model,and analyzes the relationship between agricultural insurance and farmers' disposable income by establishing panel vector autoregressive model(PVAR model).In the past,most research literatures studied agricultural insurance by panel data.No literature used PVAR model to discover the impact of agricultural insurance on Farmers' income.The advantage of PVAR model is that it cannot only study the interaction between variables,but keep the independence of each variable,which makes the research conclusion more scientific and effective.In this paper,the per capita agricultural insurance expenditure is selected as the variable to analyze agricultural insurance,and agricultural business income,salary income,property income and transferred income are the variables to analyze the disposable income of farmers.PVAR model could research the interaction among five endogenous variables of per capita agricultural insurance expenditure,agricultural business income,salary income,property income and transferred income.It also can find the path of agricultural insurance's influence on Farmers' income and the problems of agricultural insurance in the transformation of new agriculture.The empirical research shows that agricultural insurance can increase farmers' income.The influence paths of agricultural insurance on agricultural business income,salary income,transferred income and property income are different.Agricultural business income,salary income,transferred income and property income have different effect on agricultural insurance.(1)Agricultural insurance indirectly increase agricultural business income,but external economic factors will inhibit the impact of agricultural business income on agricultural insurance.Affected by external economic factors,the increase of agricultural business income will not necessarily promote the development of agricultural insurance,but will reduce the purchase of agricultural insurance.(2)Agricultural insurance directly promotes the increase of farmers' transferred income,but the impact of agricultural insurance on Farmers' transferred income has threshold effect.The increase of farmers' transferred income can stimulate the enthusiasm of farmers to participate in and purchase agricultural insurance.(3)The promotion of agricultural insurance on the disposable income of farmers will have an indirect impact on the salary income and property income of farmers.However,in terms of direct impact,agricultural insurance will not directly increase farmers' salary income and property income.In fact,salary income and property income also have no effect on the development of agricultural insurance.