The Impact of Policy Based Food Crop Insurance on Rural Residents' Planting Structure

Xiyuan Qiao and Chen Zhu

No 404331, 2026 Annual Meeting, July 26 - 28, 2026, Kansas City, Missouri from Agricultural and Applied Economics Association

Abstract: China launched policy based staple grain insurance for rice corn and winter wheat from 2018. This policy covers full cost insurance and planting income insurance. Based on the staggered implementation across counties in thirteen major grain producing provinces of China this paper uses staggered difference in differences model and county level panel data to estimate the policy causal effect on staple grain planting area. The policy raises grain planting area of pilot counties by around 8.0 percent which survives various robustness tests. Extreme climate days positively moderate the policy effect meaning larger gains in high climate risk regions. Heterogeneity indicates stronger effects in North China and counties with less per capita arable land and higher economic development. This paper adds fresh evidence for how subsidized crop insurance improves land allocation and food security in developing economies.

Keywords: Agricultural Finance; Farm Management (search for similar items in EconPapers)
Pages: 21
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:ags:aaea26:404331

DOI: 10.22004/ag.econ.404331

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