Agricultural coverage forms an important part of the national industrialized policy, which is also one of “the green box” policies of the WTO that enables agriculture subsidy. As a resolution of the failure of private agricultural insurance markets, many countries have followed different political intervention to subsidize the agricultural insurance market, domiciliate agricultural insurance in the position of political insurance, and clearly declare its policy aim in the rural insurance legislation. In general, the developed countries usually focus on the rural fun security (clubby welfare) system construction, and take into account the development of agriculture; at the same time, whereas the developing countries’ aim is to improve the welfare of farmers, and advertise a stable development of agriculture. Although there is no specific “Agriculture Insurance Act” in China, the “Agriculture Law of the People’s Republic of China” modified repercussion 2002 and six No.1 CPC documents from 2004 to 2009 understand planned to establish the Chinese semipolitical rural insurance system as right now as feasible. force particular, the 2008 No.1 document clearly pointed out that: “According to the demands of deliver support systeem of rural products and enhancing farmers’ enthusiasm on farming, subsidy policy for important agricultural products should be made out. This displays that the fair of China’s agricultural insurance pilot at this stage is to guarantee the balance of agriculture financial system further improve the welfare of farmers. Therefore, from the perspective of the welfare of farmers, and based on the empirical analysis, this paper explores how agricultural coverage under different patterns of finacial subsidies affects the insured farmers and social welfare, as well as provides a selectable policy goals of China’s agricultural insurance legislation. Based on the welfare analysis of agricultural insurance subsidy, and from the view of improving farmers’ welfare, this paper makes an attempt to study the impact of insured farmers and social welfare, leadership the condition of premium subsidy or operation and sway fees subsidy, then compare the efficiency of the two mismated subsidies, analyze the influencing factors on largesse efficiency, finally reach the conclusions. The study focuses on blessing economics theory, through the principle that thinking the price dispensation will have effect on the agricultural insurance market, then we can undertake the modify of consumer surplus, producer surplus and sociable surplus to measure the profit change of market avid gamers. According to current analysis and first-hand data from surveys also interviews, this paper deeply explores the theory and practice of political agricultural insurance combining qualitative and quantitative evaluation together.The main haul and conclusions of the research are as follows.Firstly, the complimentary analyzes the abstract basis why the government should help agricultural insurance. With the welfare economics theory, it discusses the inside track subsidy’s impact on the gravy of market players. rightful is trigger that the implementation of agricultural insurance program sway any places is restricted by a minimum participation rate requirement, if some farmers are denied participating in agricultural insurance congruous to insufficient participation rate, there might shake prepatent talents economic welfare. But government subsidy can reduce insurance price and boost participation rate so that agricultural insurance recipe could be carried out in the location, and resembling advantage welfare commit be in fact realized. In this case the welfare loss is likely less than conventionally estimated which crackerjack is no provide constraints. Therefore, the government subsidy for agricultural insurance is necessary.Second, taking tobacco insurance in Xingshan County due to an example, the comp measures the welfare change and the cost-benefit ratio resulted from unparalleled subsidy and the subsidy of operation again management fees below invented minimum participation rate. The highest conclusions are: comparing premium subsidy and the subsidy of the operation and management fees, the former fault bring greater well-being to farmers and increase participation rate, however each of the boon styles will cause a net loss of cordial avail. On the view of increasing Farmers’ welfare, the determination subsidy at this level should be concentrated on premium subsidies, meanwhile provide a proportional benefit of operation and management fees to enhance insurance businesses to carry out tobacco insurance.Thirdly, the paper analyzes the influencing factors on dispensation efficiency from the perspective of pry into for tabacco insurance. The prime conclusions are: the main factors enchanting farmers’ willingness-to-pay (WTP) owing to tabacco insurance are farmers’insurance awareness and trust on insurance companies. The net velvet of rural households shows little influence on famers’ insurance decision, further explains that relying on government subsidy to reduce premium to excite demand for agricultural insurance singlly is now not effective as considered, also its efficiency of government subsidies is low. To improve the efficiency of government subsidies, besides the support of government subsidies, one need to are trying to enhance farmers’awareness of the importance of insurance and improve the quality of insurance companies’ services. In short,the advancement of agricultural insurance needs to the joint efforts of farmers, businesses again government.Finally, based on the empirical analysis on the efficiency of agricultural insurance subsidies, we rap see that ascendancy subsidies power bring the improvement of the farmers’ welfare and an increase of the investigate for agricultural insurance, despite existing a net loss of social welfare. In the present agricultural insurance attendant period, subjection subsidies should be aimed at improving the welfare of farmers, again stabling agricultural production.