A Study On Apple Revenue Insurance And Its Pricing In Shaanxi Province

One out of every seven apples in the world comes from Shaanxi.The excellent natural conditions have made Shaanxi Province recognized by the Food and Agriculture Organization of the United Nations as the best eugenics zone for apples in the world.The apple industry has also become the most competitive agricultural industry in Shaanxi Province,with a leading position in the country.The Shaanxi provincial government attaches great importance to the high-quality development of the apple industry.It has also put forward the goal of basically building a strong apple province by 2035.However,affected by natural disasters,non-food policies and market price fluctuations,the current development of the apple industry in Shaanxi Province is still facing greater risks,seriously threatening the farming income of farmers.Agricultural insurance,as a tool for risk transfer and compensation,has become one of the most important ways to manage risk in modern agriculture.Shaanxi Province has been exploring policy insurance for apple cultivation since 2007.With the continuous improvement of production technology,the "low coverage and wide coverage" feature of policy apple insurance can no longer meet the needs of farmers for apple planting risk protection at this stage.Revenue insurance,as the future direction of agricultural insurance,can cover both yield risk and price risk,providing farmers with more comprehensive risk protection.It is more in line with the needs of farmers at this stage and is of great significance to the high-quality development of the apple industry in Shaanxi Province.This paper begins with a review of the concepts and theories related to agricultural revenue insurance in the context of existing research.Secondly,the income risks faced by apples in Shaanxi Province are analysed from three perspectives: yield risk,price risk and cost-benefit,and the feasibility of apple revenue insurance is analysed in the light of the actual situation in Shaanxi Province.Then,based on the yield and price data of apples in Shaanxi Province from 2000-2021,wavelet analysis de-trending,non-parametric kernel density estimation and Copula were used to simulate apple income risk in Shaanxi Province and to price apple revenue insurance in Shaanxi Province.The rates for apple revenue insurance in Shaanxi Province were measured at different levels of coverage and the rates were set for 30 apple base counties in the province from a county perspective.Finally,the corresponding product design and policy recommendations for apple revenue insurance in Shaanxi Province are presented.The study shows that at this stage,Shaanxi Province has the conditions to develop apple revenue insurance.There is a weak negative correlation between apple yields and prices in Shaanxi Province.The net rate of apple revenue insurance in Shaanxi Province was calculated to be 4.31%-13.56% at 70%-80% coverage levels,which is relatively high,but even at 70% coverage levels,it still covers the cost of apple production and is significant in practical terms.At the same time,the risk varies considerably from county to county due to differences in growing conditions across the province.Finally,a product design for apple revenue insurance in Shaanxi Province is presented with a view to providing a reference for the local community.Based on the above findings,the government should encourage localities to select appropriate insurance products and coverage levels according to local conditions,so as to effectively utilise the effectiveness of agricultural insurance.