The Farmers Behavior in Agricultural Insurance under the Von·Neuman-Morgenstern Utility Model

Agricultural insurance is an important component in the system of agriculture and the rural economy and plays an important role in the stability of rural society. Farmers as an important actor in agricultural insurance, the analysis of their economic behavior has important significance. Based on the basic assumptions of economics, this paper analyzes characteristics of farmer behavior in agricultural insurance and the factors affecting their behavior. Then using Von · Norman---Morgenstern Utility Model to analyze the risk preferences of individual farmer. The research result is that under the present stage, agricultural insurance behavior is influenced by many factors. In the voluntary insurance and nor a certain amount of subsidy, the vast majority of farmers would not choose insurance and the demand of agricultural insurance can only be regarded as a potential demand rather than effective demand. It needs joint work to ensure the farmer to attend the agricultural insurance.