The Benefit Spillover Effect of Agricultural Insurance Poverty Alleviation

Rural poverty is a major challenge that restricts China's economic development and social stability. Agricultural insurance can solve the poverty problems caused by natural disasters and protect the minimum income of poor farmers. Therefore, the paper uses log-linear regression analysis using Cobb-Douglas and agriculture-related loans as indicators. The study finds that agricultural insurance has a welfare spillover effect of poverty alleviation. The balance of loans from farmer households and various organizations has the greatest impact on the welfare spillover effect of agricultural insurance. The elasticity of farmer's loan balance to farmers' income is 0.357 397. Based on this, it is recommended that government departments raise the risk protection level of agricultural insurance in impoverished areas, strengthen the development of rural credit in impoverished areas, and optimize poverty-stricken farmers' agriculture-related loan policies so as to give full play to the poverty alleviation effect of "agricultural insurance + agricultural credit".