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DOES THE POLICY OF FINANCIAL SUBSIDIES FOR AGRICULTURAL INSURANCE CONTRIBUTE TO ENSURING FOOD SECURITY FOR POVERTY ALLEVIATION? EVIDENCE FROM CHINA

China’s current agricultural policy includes a wide range of agricultural subsidies, but the overall effect and levels of protection are low. China’s continued use of agricultural subsidies to ensure national food security is important in the context of global poverty alleviation. We examine the effect of agricultural insurance financial subsidy policies on food security using a difference-in-difference model with data from 285 Chinese cities from 1978 to 2019. These agricultural insurance subsidies have a significant positive effect on food security, with the most noticeable improvements in the northeast region. Reform and redesign of the subsidy system for greater flexibility and coverage are needed to safeguard China’s food security.