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Researches on Agricultural Cooperative Economic Organization Promoting Agricultural Insurance Development

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  • Wang, Xiu-fen
  • Li, Mao-song
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    Abstract

    The advantages of cooperative economic organization being the effective carrier of agricultural insurance development are analyzed. Firstly, cooperative economic organization promotes scale management and solves the problem of decentralized operation of small households. Secondly, cooperative economic organization can settle the problem of peasants' low systematization. Thirdly, cooperative economic organization can largely reduce the costs of agricultural insurance operation. Fourthly, cooperative organization decreases moral risks as well as adverse selection to some extent. Lastly, cooperative organization, to a certain degree, reduces the risks of agricultural production and increases the insurability of agricultural risks. Meanwhile limitations of agricultural cooperative economic organization being the carrier of agricultural insurance operation are pointed out. Firstly, cooperative economic organization has limited coverage and small sire of organization, which is harmful to the diversification of agricultural risks. Secondly, cooperative economic organization lacks capital funds and its development is not standard, which is not perfect for the function exertion as a carrier. Lastly, members of professional cooperative organization have low cultural qualities, which restrict the implementation of agricultural insurance. The modes of farmers' operative economic organization promoting agricultural insurance development are proposed, including mode of agricultural insurance cooperative (mutual corporation), mode of ' leading enterprises (companies) + professional cooperative organization (planting majors) + insurance and mode of professional cooperatives sewing as agricultural insurance agent. Last of all the promoting role of agricultural insurance in agricultural cooperative economic organization is briefly illustrated.

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    Bibliographic Info

    Article provided by USA-China Science and Culture Media Corporation in its journal Asian Agricultural Research.

    Volume (Year): 03 (2011)
    Issue (Month): 07 (July)
    Pages:

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    Handle: RePEc:ags:asagre:119706

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    Keywords: Cooperative economic organization; Agricultural insurance; Development; China; Agribusiness;

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