Regional Differences of Agricultural Insurance to Farmers' Income in the Perspective of Supply-side Reform

This paper studies how to promote supply-side reform through agricultural insurance, thereby affecting farmers' income and promote the balanced rural construction steadily through perspective of supply side reform. Firstly, this paper starts from the effective supply of agricultural insurance to construct Cobb - Douglas production function (C-D function), selects the indicators of effective supply of agricultural insurance from three aspects of labor, capital and technology to cluster analysis, the 31 provinces and autonomous regions are divided into four regions by way of autonomous clustering. Then, we selected datas of agricultural insurance premiums and farmers 'income from 2005 to 2013 among 31 provinces in China, in the four regions, the panel model is used to quantitatively analyze the regional differences in the impact of agricultural insurance on farmers' income. The results show that: The total supply of agricultural insurance is adequate in the third largest area (Beijing, Shanghai, Zhejiang and so on), but there is a negative effect of agricultural insurance on the income of farmers, in other regions, there exist some relative shortage of effective supply, but the agricultural insurance has a positive effect on the farmers' income, and there are some differences in the positive effects of each region.