Abstract: Using provincial panel data from 2009 to 2023 as a sample, the heterogeneity of the impact of financial subsidies and farmers’ income on agricultural insurance across different regions was studied based on the characteristics of agricultural production. A "horizontal + vertical" reverse approach was employed to analyze the impact of farmers’ income on agricultural insurance. The study found that, on a national level, financial subsidies and farmers’ income had a significant positive impact on agricultural insurance, with the influence of financial subsidies being greater than that of farmers’ income. Regionally, farmers’ income had a significant positive impact on agricultural insurance density across all regions, while financial subsidies generally had a positive impact, except in the western region where it was negative. The coefficient of per capita agricultural insurance payment, per capita agricultural output value and rural compulsory education proportion had all been positive, but the influence intensity had varied with different regions. The per capita agricultural loan and the degree of disaster had different impacts on agricultural insurance density in different regions. The coefficient of per capita agricultural loan in Northeast China had been positive, while that in other regions had been negative. The degree of disaster had been positive except for the central region, where the coefficient had been negative. Based on these findings, the study suggested implementing differentiated financial subsidies, optimizing the insurance environment, expanding the coverage of agricultural insurance to safeguard farmers’ income, and increasing farmers’ education and training to improve their overall quality.

Key words: financial subsidies, farmers’, income, agricultural insurance, heterogeneity