Factors influencing Chinese farmer demand for vegetable price insurance in Beijing-Tianjin-Hebei region

The study investigates whether vegetable price index insurance could be applied to the Beijing-Tianjin-Hebei (BTH) region of China and identifies farmers’ interest in the insurance. Vegetable price index insurance is growing rapidly in China and was recently introduced in the Shanghai region. Although the BTH region is an important region for vegetable production and consumption, no such insurance is currently available in the region. Survey data from 450 farmers in the BTH region were collected during July-August 2016. Factors influencing farmer demand for vegetable price index insurance in the region are identified by estimating a probit model. Four categories of factors are considered: location, demographics (gender, age, education, and experience), farm characteristics (size, organization membership, yield, and net income), and risk cognition (market price sensitivity, other insurance purchased, price risk type and recent loss experience from low price). The results should assist the Chinese government structure and promote a vegetable price insurance that will be an effective method to maintain vegetable prices in the region and promote vegetable production by farmers.

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Conference Paper/ Presentation
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JEL Codes:
G22; Q14

 Record created 2017-04-01, last modified 2020-10-28

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