An Analysis of the Impact of Fiscal Subsidies on Farmers' Demand for Agricultural Insurance

摘要

This paper analyzes the current situation of agricultural insurance and subsidies in Sichuan Province from 1998 to 2018, and finds that financial premium subsidies, disaster-stricken areas, per capita disposable income, and claims ratios have certain correlations with agricultural insurance. Among them, financial subsidies increase farmers' demand for agricultural insurance by reducing farmers' participation in agricultural insurance, and effectively reduce the risk of agricultural production. However, the incentive effect on the demand of farmers has not been expected to have a large effect, such as low compensation rate, low coverage rate, market violations, adverse selection, and single subsidy mechanism. It was also found that in the early 21st century, Sichuan Province, as a large agricultural province in the southwestern region, was in a state of very depressed agricultural insurance. Under the background of the national policy to promote the development of agricultural insurance, it was also the first batch of the 2007 financial premium subsidy policy. One of the pilot units, its agricultural insurance development has achieved remarkable results and ranks among the top in the country. Therefore, the government should continue to improve the subsidy policy, innovate the subsidy mechanism for agricultural insurance, better understand the needs of farmers, better play its functions to support agricultural development, ensure farmers' incomes, and promote rural revitalization.