Research on Safeguarding Chinese Farmers’ Agricultural Income: A Perspective Based on the Reasonableness of Income Insurance Pricing for Cotton in Xinjiang, China

Abstract

The Chinese government attaches great importance to agricultural and rural development as well as increasing farmers’ incomes. Farmers’ income is sensitive to price fluctuation and yield of the crop. Income insurance is a financial instrument that China is exploring to safeguard farmers’ income, however, its performance has been less than satisfactory. There is an urgent need to identify the problems and optimize the problematic aspects of income insurance. The essence of income insurance lies in assessing the magnitude of income risk. However, in practice, the income insurance has not been successfully promoted nationwide. This suggests that the current model for income risk still faces unresolved issues.