Risk perception, insurance recognition and agricultural insurance behavior-An empirical based on dynamic panel data in 31 provinces of China

Farmers' agricultural insurance decision-making is affected by behavioral factors. The paper using provincial panel data in Chinese 31 provinces and GMM dynamic panel data model examined the effect of five group variables on agricultural insurance decision making: risk perception and management, agricultural insurance recognition, trust, affordability and affection in agricultural production. The results show that agricultural insurance affordability, risk perception and management are the major influencing factors; agricultural insurance has the highest elasticity on household net income, which is 9.813, followed by elasticity on year-end total rural power machinery and cash expenditure on health care, which are 7.719 and 5.567 respectively, yet negative. Measures like raising household net income, building sound rural health care system, strengthening governments' subsidy on agricultural machineries, improving the educational level of farmers can effectively boost agricultural insurance demands.