Empirically-based crop insurance for china: A pilot study in the down-middle yangtze river area of china

Erda Wang, Yang Yu, Bertis B. Little, Zhongxin Chen, Jianqiang Ren

Research output: Chapter in Book/Report/Conference proceedingConference contribution

3 Citations (Scopus)


Factors that caused slow growth in crop insurance participation and its ultimate failure in China were multi-faceted including high agricultural production risk, low participation rate, inadequate public awareness, high loss ratio, insufficient and interrupted government financial support. Thus, a clear and present need for data driven analyses and empirically-based risk management exists in China. In the present investigation, agricultural production data for two crops (corn, rice) in five counties in Jiangxi Province and Hunan province for design of a pilot crop insurance program in China. A crop insurance program was designed which (1) provides 75% coverage, (2) a 55% premium rate reduction for the farmer compared to catastrophic coverage most recently offered, and uses the currently approved governmental premium subsidy level. Thus a safety net for Chinese farmers that help maintain agricultural production at a level of self-sufficiency that costs less than half the current plans requires one change to the program: 80% of producers must participate in an area.

Original languageEnglish
Title of host publicationCutting-Edge Research Topics on Multiple Criteria Decision Making
Subtitle of host publication20th International Conference, MCDM 2009, Chengdu/Jiuzhaigou, Proceedings
PublisherSpringer Verlag
Number of pages7
ISBN (Print)9783642022975
Publication statusPublished - 2009
Externally publishedYes

Publication series

NameCommunications in Computer and Information Science
ISSN (Print)1865-0929

All Science Journal Classification (ASJC) codes

  • General Computer Science
  • General Mathematics


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