Crop insurance and agrochemical use in the Manasi Watershed, Xinjiang, China

This study investigates the environmental impact of a government subsidy program for crop insurance in China. It looks at how crop insurance scheme in Xinjiang province affects the way cotton farmers use fertilizers, pesticides and plastic agro-film. These three inputs cause significant environmental problems in the region and there is a need to ensure that their over-use is not encouraged. The study finds that crop insurance helps protect farmers from the economic impact of crop failures, with a minimal negative impact on the environment. The only significant impact is a potential slight increase in agro-film use. In fact, crop insurance helps reduce the amount of pesticides cotton growers use. In light of these findings, the study concludes that a government-subsidized crop insurance program is an acceptable policy and proposes a number of ideas for minimizing any residual environmental impact it might have