The optimal boundary of political subsidies for agricultural insurance in welfare economic prospect

China is one of the most suffering countries in agriculture by Nature. The current statistics shows a growing lose by agriculture risk. Insurance, as a lack part in the agricultural risk management, is constraining the ability to defense the risk and the sustainable development for our modern agriculture. Either sufficient or deficient in political subsidies will cause welfare deadweight loss. The article analyzed the optimal boundary of the fiscal subsidies based on the welfare loss model in agricultural insurance. We’re trying to reduce the benefit loss due to asymmetric information, optimize the efficiency of fiscal transfers and enhance the farmers’ welfare. We also like to give several suggestions in how to promote our political subsidies in agricultural insurance.