Analysis On The Difference Of Premium Subsidy Performance Of Policy Oriented Crop Insurance In Henan Province

As a measure of agricultural economic security and risk diversification,agricultural insurance is a common practice in market economy countries to support agricultural development.By subsidizing agricultural insurance,it can be within the scope allowed by the rules of the World Trade Organization which can indirectly provide reasonable and effective protection for China’s agriculture.And it can also reduce the impact of China’s accession to the WTO on agricultural production.However,in the implementation of China’s current agricultural insurance subsidy policy,there are a series of problems that need to be solved urgently such as a low subsidy ratio,the lack of timely funding of financial subsidies and the mismatch between supply and demand.Therefore,how to correctly and efficiently use agricultural insurance subsidy policies to improve the level of China’s agricultural insurance market and ensure the sustainable and stable development of agricultural production has received increasing attention from all parties.Agricultural production in Henan Province plays an important role in the development of national agricultural production and provides convenience for agricultural production through various means such as providing partial subsidies for the premium of agricultural insurance products and continuously increasing the scope of insurable agricultural products and encouraging local governments to include local specialty agricultural products in agricultural insurance subsidy projects.The agricultural insurance subsidy policy indirectly promotes the production and trade of agricultural products which is in line with the "green box" regulations of the World Trade Organization and has been vigorously promoted by many countries.As of now,the support from relevant departments of the Henan Provincial Government for agricultural insurance premium subsidies has been continuously increasing which effectively ensures the stability of agricultural production activities in various regions of Henan Province.However,the actual implementation effect of agricultural insurance subsidy policies in various cities in Henan Province is somewhat unsatisfactory with problems such as resource waste and improper use of financial subsidies.Taking the scale of subsidies as an example,after obtaining agricultural insurance subsidies provided by government departments insurance institutions generally retain some of the subsidy funds and select a portion to invest in the daily operations of insurance institutions.It will lead to the inability of insurance institutions to timely provide insurance compensation or reduce the amount of compensation when farmers suffer losses,leading to a continuous decrease in the credibility of agricultural insurance in the minds of agricultural producers and thus having an irreversible impact on the promotion of agricultural insurance products and even the long-term development of the agricultural insurance market if the retention ratio is too low.At present,research shows that due to differences in the scale and methods of subsidies for agricultural insurance premiums in some municipal areas the performance of agricultural insurance subsidies in multiple cities in Henan Province is relatively low and there is still room for improvement.Considering the above reasons,this article takes Henan Province as the research object to analyze the differences in the performance level of agricultural insurance subsidy policies in Henan Province.By analyzing the reasons for these differences,suggestions for improvement are proposed to improve the implementation effect of the subsidy policy and improve the level of agricultural production guarantee and ensure the stability of agricultural production in Henan Province.The thesis decides to take the performance of Crop insurance subsidies in 18 municipal areas of Henan Province from 2016 to 2020 as the research object.This thesis decides to use the Data envelopment analysis method to calculate the comprehensive performance level of Crop insurance premium subsidy policies in 18 cities in Henan Province from 2016 to 2020.The results are as follows:(1)The performance level of other municipal regions is generally low and the Crop insurance subsidy performance changes significantly except for Ji Yuan City and Zhengzhou City.(2)Each explanatory variable has a significant impact on the level of insurance performance.(3)The level of economic development,the level of farmers’ production and the level of insurance market development are three types of influencing factors for the subsidy performance of Crop insurance in Henan Province.This thesis proposes the following suggestions based on the empirical analysis results.Exploring the establishment of a multi-level financial subsidy system,utilizing the advantages of municipal regions to narrow performance level differences,strengthening policy publicity and improving farmers’ willingness to participate in Crop insurance are suggestions which aim at improving the performance level of Crop insurance subsidies in Henan Province.