Dynamic relationship between agricultural insurance and agricultural disaster degree——Concurrently on necessity for financial support

Agricultural insurance is an important system of rural financial support for agricultural development. The paper analyzed the agricultural insurance for improve farmers' ability to withstand risks and reducing the damage degree, using the data of Guangdong province from 1997 to 2010, application the error correction model to explore the dynamic relationship between both of two. The results showed that: the improvement for agricultural insurance depth was conducive to reducing agricultural damage degree, and existing longrun equilibrium relationship, agricultural insurance depth was the Granger cause of agriculture affected the degree, while the reverse relationship less than support. On the basis of the empirical analysis, the paper also analyzed the characteristics and foundation of agricultural production status and agricultural insurance market characteristics, to further explore the necessity of financial support.