Evaluation of Economic Loss of Farmers at Risk of Animal Epidemic

  • Kai Zhou


With the rapid development of economy and the continuous improvement of people’s living standards, the demand for meat is growing, which also makes the development of China’s aquaculture industry has made great achievements. However, with the continuous improvement of the scale of farming, the risk of animal epidemic is also increasing. Avian influenza, foot-and-mouth disease, rabies and other major animal epidemic events occur frequently, which causes the greatest loss to the farming industry in China, and seriously threatens food safety and social stability. When a major epidemic occurs, the state will take certain measures to reduce the impact of the epidemic, and after the epidemic, the government has set up a compensation policy for the loss of the epidemic to compensate farmers. Although the existing compensation mechanism gives some compensation to farmers, there are still many unreasonable aspects, and there is a great shortage in considering the actual loss of interests of farmers. Therefore, taking avian influenza as an example, this paper studies the evaluation of economic losses of farmers when the outbreak of epidemic risk occurs, and uses the analysis results to improve the existing compensation policy. Firstly, the shortcomings of the existing economic loss evaluation methods and compensation policies are analyzed. Secondly, the economic loss evaluation model of farmer is established, and the representative farmer is taken as an example to study its economic loss. Finally, according to the study of economic loss evaluation, the existing compensation policy should be improved. Through the study, we found that in view of the shortcomings of the existing economic loss evaluation methods and compensation policies, we established an effective economic loss evaluation model, and perfected the existing compensation policies, making them more in line with the economic interests of farmers.