Research On The Impact Of Agricultural Insurance On The Optimization Of Agricultural Industrial Structure

China’s agriculture has achieved significant results,but it also faces many problems and challenges,among which one of the most prominent problems is the optimization and upgrading of the agricultural industrial structure.At present,China’s agricultural industry structure is shifting from a traditional single planting industry to a diversified development format of agriculture,forestry,animal husbandry,fishing,and agricultural,forestry,animal husbandry,and fishing service industries.The agricultural industry structure is transforming from a low-level form to a high-level form.With the acceleration of the process of optimizing and upgrading the agricultural industrial structure in China,the issue of agricultural risks is becoming increasingly prominent due to the weakness and particularity of the agricultural industry,which hinders the optimization and upgrading of the agricultural industrial structure.Agricultural insurance,as an important tool for agricultural risk management,can reduce farmers’ economic losses and improve their risk tolerance through compensation,thereby promoting stable operation and sustainable development of farmers.In recent years,China’s agricultural insurance has experienced rapid development,with its coverage and business volume continuously expanding.So,as an important tool for agricultural risk management,does agricultural insurance have a promoting effect on the optimization of agricultural industrial structure? What is the mechanism of its impact?Is there regional heterogeneity due to regional differences? The above issues require further in-depth research by us.This article is based on agricultural risk management theory and industrial structure optimization theory,taking into account natural risks,credit risks,and technological risks,and analyzing the optimization path of agricultural insurance development level on agricultural industrial structure from a theoretical perspective.Then,this paper selects the provincial panel data of China from 2011 to 2020 to build a dynamic panel model,and uses the method of systematic GMM to empirically test the impact of agricultural insurance on the optimization of agricultural industrial structure.Secondly,this article empirically tests the optimization mechanism of agricultural insurance on agricultural industrial structure by introducing intermediary variables and using a stepwise regression method.In addition,this article divides the country into three major regions: East,Central,and West for grouping regression and in-depth analysis of regional heterogeneity.Based on the empirical results,this article draws the following conclusions:(1)Agricultural insurance has a significant promoting effect on the optimization of agricultural industrial structure.Agricultural insurance,as a risk management tool,can effectively reduce the uncertainty and risks faced by farmers in agricultural production,and promote the transformation of agricultural industrial structure from a low-level form to a high-level form.(2)Agricultural insurance promotes the optimization of agricultural industrial structure through the effects of agricultural credit and agricultural technology.Firstly,agricultural insurance promotes the development of agricultural credit and further optimizes the structure of the agricultural industry by reducing natural and credit risks in the agricultural production process.Secondly,agricultural insurance can enhance the level of agricultural technology and optimize the structure of the agricultural industry by dispersing technological risks.(3)The impact of agricultural insurance on the optimization of agricultural industrial structure has regional heterogeneity.The promotion effect is significant in the eastern and central regions,but not significant in the western regions.This article proposes the following policy recommendations:(1)Improve the coverage rate of agricultural insurance and strengthen the promoting role of agricultural insurance in optimizing the agricultural industry structure.Firstly,the government should introduce relevant policies to encourage and support the development of the agricultural insurance market,such as increasing the proportion of premium subsidies.In addition,agricultural insurance companies should strengthen the promotion and training of farmers,mobilize their enthusiasm and initiative,and improve the coverage and effectiveness of agricultural insurance.(2)Promote the integration of agricultural insurance with credit and technology,and fully leverage the credit and technological effects of agricultural insurance.Financial institutions can cooperate with insurance companies to fully leverage the credit effect of agricultural insurance.In addition,the government can increase investment in agricultural technology and support the promotion and application of new agricultural equipment through agricultural insurance.(3)Pay attention to regional differences and formulate agricultural insurance policies that are compatible with the optimization of agricultural industrial structure.The government should strengthen its support for agricultural insurance in the western region and formulate agricultural insurance policies that are compatible with the optimization of agricultural industrial structure.At the same time,we need to strengthen the driving role of the eastern and central regions,and guide resources to tilt towards the western region.