Analysis of agriculture insurance technical efficiency based on COLS approach for rice farmers in Liaoning province

The purpose of this study was to describe the effect of agriculture insurance on crop production among rice farmers in Liaoning province. The population used in this study consisted of rice farmers. We used stratified multi-stage cluster sampling method to collect data of this study and face to face interviewed with 206 farmers in three different climate regions: cold, temperate and tropical during 2010-2011 crop years. Corrected Ordinary Least Square (COLS) was used to determine farmers´ technical efficiency. The study adds to findings that agriculture insurance has positive effect on temperate and tropical regions. However, there was non-significant production difference between insured and uninsured farmers in cold region. Therefore, the conclusion was that technical efficiency of agricultural production is a function of agriculture insurance as well as other variables such as production risk management practices, personal characteristics and fair distribution of crop inputs.