Studies from Shaanxi Normal University Reveal New Findings on Crop Insurance (How Crop Insurance Influences Agrochemical Input Use: Evidence From Cotton Farmers In China): Agriculture – Crop Insurance

2023 MAR 28 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Investigators publish new report on Agriculture - Crop Insurance. According to news reporting from Shaanxi, People’s Republic of China, by NewsRx journalists, research stated, “Crop insurance is critical in risk management in global agricultural production (e.g. by helping stabilise farmers’ incomes in the long term and reducing risk-bearing costs). In this paper, using field survey data on cotton farmers in Xinjiang, China, we examine the influence of crop insurance on farmers’ behaviours regarding agrochemical inputs and aim to investigate the synergy between crop insurance and reductions in fertiliser and pesticide usage.”

Financial supporters for this research include National Natural Science Foundation of China (NSFC), Humanities and Social Science Research General Project of the Ministry of Education of China, Social Science Foundation of Shaanxi Province, Soft Science Research Program in Shaanxi Province.

The news correspondents obtained a quote from the research from Shaanxi Normal University, “We find evidence that crop insurance significantly negatively affects farmers’ use of fertilisers and pesticides, as well as significantly positively affects their adoption of green agricultural technologies (GAT) that can replace or complement traditional fertilisers and pesticides. Moreover, our results reveal that compared with small-scale farmers, crop insurance has a stronger effect on large-scale farmers’ use of agrochemicals. Finally, when the insured amount is higher or the relative deductible is lower, farmers are more likely to reduce fertiliser and pesticide usage and adopt GAT.”

According to the news reporters, the research concluded: “Overall, this paper scientifically identifies crop insurance can improve farmers’ agrochemical input behaviour, by reducing farmers’ use of traditional agrochemical inputs and increasing their adoption of GAT, which is of great significance for ensuring the safety of the agricultural ecological environment.”

This research has been peer-reviewed.

For more information on this research see: How Crop Insurance Influences Agrochemical Input Use: Evidence From Cotton Farmers In China. Australian Journal of Agricultural and Resource Economics, 2023. Australian Journal of Agricultural and Resource Economics can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; Australian Journal of Agricultural and Resource Economics - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1467-8489)

Our news journalists report that additional information may be obtained by contacting Shaojian Chen, Shaanxi Normal University, Northwest Inst Hist Environm & Socio Econ Dev, Xian, Shaanxi, People’s Republic of China. Additional authors for this research include Hui Mao, RuiYao Ying and Yong Fu.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/1467-8489.12507. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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