Farmers’ Willingness to Pay for Cow Insurance in Shaanxi Province, China

The potential risk for livestock breeding is much higher than other agricultural producer which affects income stability and welfare of households. Agricultural insurance is developed slowly in China. This paper analyzes farmers’ Willingness to pay (WTP) for cow insurance and factors influencing farmers’ participation in and WTP. It shows that the current premium is in the range that famers can accept. The acceptance of premium and farmers’ knowledge of allowance significantly influenced both of their participation and WTP. Policy makers should encourage farmers to enlarge their scale and make the premium as low as possible through subsidy farmers.