Impacts of policy-related agricultural insurance on farmers’ earnings in China's major grain-producing regions

• Published in: Finance research letters 2024-11, Vol.69, p.106189, Article 106189
• Main Authors: Gu, Lili, Liu, Yuchen, Liu, Fang, Dong, Xintong, Dong, Yuling
• Format: Article
• Language: English
• Subjects: China's major grain-producing regions; Farmers’ earnings; Fixed effects model; Policy-related agricultural insurance
• ISSN: 1544-6123
• DOI: 10.1016/j.frl.2024.106189

•This paper finds that policy-related agricultural insurance promotes farmers’ income level.•The three mediating variables are positively moderated.•This paper has three channels to increase farmers’ income. Policy-related agricultural insurance can diversify farming risks and compensate damaged farmers’ losses. This study examined the impact of policy-related agricultural insurance on farmers’ earnings in China's primary grain-producing regions. The findings indicate that policy-related agricultural insurance significantly improved farmers’ earnings. Agricultural operational scale, technological advancements, and agricultural credit played an intermediary role in policy-related agricultural insurance on farmers’ earnings. This study provides suggestions including increasing support, guiding the modernization and transformation of policy-related agricultural insurance, promoting coordinated development of agricultural insurance and agricultural credit in order to promote the high-quality development of policy-based agricultural insurance and improve farmers' income.