Ziyuan Kexue (Nov 2023)
The impact and mechanism of full cost insurance on farmers’ investment in farmland quality protection
Abstract
[Objective] Strengthening the protection of farmland quality is an urgent need for promoting the sustainable development of food and agriculture, and clarifying the impact of full cost insurance on farmers’ investment in farmland quality protection has important policy implications for ensuring the steady improvement of farmland quality and maintaining national food security. [Methods] Based on the survey data of 1719 households from Hebei, Shandong, Henan, and Anhui Provinces in 2022, this study empirically tested the impact of full cost insurance on farmers’ investment in farmland quality protection using the double hurdle model and the quantile regression model. [Results] The results indicate that: (1) Participating in the full cost insurance program can significantly promote farmers’ willingness and degree of investment in protecting farmland quality, and full cost insurance coverage level has a greater impact on the willingness and degree of investment of farmers in protecting the quality of farmland. (2) Full cost insurance can promote farmers’ investment in farmland quality protection by increasing their expected income and access to credit. (3) The impact of full cost insurance on farmers’ investment in farmland quality protection at different quantiles shows an inverted U-shaped pattern of first increasing and then decreasing, and farmers with investment levels at the 70th percentile have the greatest impact coefficient. Compared to small farmers, full cost insurance coverage level has a stronger impact on the investment of large-scale farmers. Compared to part-time farming households, full cost insurance coverage level has a greater impact on the investment of full-time farmers. Compared to risk averse farmers, full cost insurance coverage level has a more significant effect on the investment of risk-taking farmers. [Conclusion] Therefore, it is necessary to continue to promote full cost insurance, fully leverage the role of full cost insurance as a “protective umbrella”, and stimulate the endogenous motivation of farmers to strengthen the protection of farmland quality.
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