Research on Optimal Agricultural Insurance Product and Its Effect of Poverty Alleviation
Jian ZHANG

Abstract
Agricultural insurance has played a positive role inensuring agricultural production and stabilizing farmers' income, and has become an important financial tool for poverty alleviation for the rural poor in China. Due to different capital levels, the individual farmer will use production technology with different efficiency. This paper establishes some multiple equilibrium models based on agricultural risk and agricultural insurance, and then discusses the effect of agricultural insurance on poverty alleviation under the agricultural risks. It is found that agricultural insurance can effectively reduce the probability of falling into the poverty trap for the farmers whose initial capital is larger than a certain critical value, and can play a good role in poverty alleviation. At the same time, the individualized design for the optimal agricultural product will improve farmers' enthusiasm for Agricultural insurance.

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