Poverty Alleviation Effect Research Of The Combination Of Rural Insurance And Rural Finance Under The Consumption Constraint

Agricultural credit and agricultural insurance,as important means for farmers to transfer agricultural risks,increase agricultural production capital input,ensure crop output and increase agricultural operating income,play an important role in China’s targeted poverty alleviation strategy.The organic combination of agricultural credit and agricultural insurance,give full play to their respective advantages,more effective to help farmers out of poverty.This paper combines agricultural credit,agricultural insurance and multiple equilibrium model,using monte carlo numerical simulation to quantify the threshold of poverty trap and the probability of farmers falling into poverty,and divides different groups of people.Based on this model,firstly,the paper studies the impact of agricultural credit on the critical point of farmers falling into poverty trap and the probability of falling into poverty,compares the poverty alleviation effect of reducing credit interest rate with it,and analyzes the impact of lowering interest rate.Secondly,it studies the poverty alleviation effect under the cooperative mode of agricultural credit and agricultural insurance,and explores the subsidy proportion of policy-based agricultural insurance and the diversity of agricultural insurance products.Finally,the paper analyzes the poverty alleviation effect of differentiated agricultural credit products and their cooperation with agricultural insurance.The research shows that as a direct way to expand farmers’ capital scale,agricultural credit will help low-capital farmers get out of poverty,while agricultural insurance will protect the rights and interests of high-capital farmers and reduce their probability of falling into poverty.The effect of poverty alleviation under the cooperation mode of agricultural credit and insurance is better than that of any single product.The reduction of credit interest rate by financial institutions and the subsidy of insurance premiums by government finance can reduce the expenditure of farmers and play a significant role in poverty alleviation.Facing different groups,the government should provide differentiated agricultural credit and insurance products to meet the diverse credit insurance needs of farmers and maximize benefits.The government should establish a sound system of rural finance and agricultural insurance,strengthen cooperation between credit institutions and insurance companies,and promote the development of new agricultural credit insurance products.