The Impact of Agricultural Insurance on Farm Household Resilience—Evidence from Survey Data in Three Major Grain-Producing Regions in China

This study examines the impact of agricultural insurance on farm household resilience and explores the underlying mechanisms through which this effect operates. Using survey data from 1242 farm households collected in 2021 across three major grain-producing provinces in China—Heilongjiang, Henan, and Hunan—this study constructs a multidimensional index of household resilience based on resistance, recovery, and regeneration using the entropy method. An instrumental variable approach is employed to address endogeneity concerns, and a mediation model is used to identify the mechanisms of influence. The results show that agricultural insurance significantly enhances farm household resilience, with the strongest effect observed in the recovery dimension. Mechanism analysis reveals that this effect operates through reducing risk aversion, improving income security, and promoting crop innovation. Heterogeneity analysis indicates that the resilience-enhancing effect is more pronounced among large-scale farmers and those who have not adopted climate adaptation measures. These findings suggest that agricultural insurance plays a critical role in strengthening farm household resilience through multiple channels. Policy efforts should focus on improving insurance accessibility, particularly for smallholder farmers, and promoting complementary measures such as risk management education and technological innovation.