This study examined The Margin Protection Program for Dairy’s impact on the “effective margins” or margins realized by dairy producers in various regions. Each selected margin and percentage of production history offered by the national policy was analyzed in a forecasting, national and regional manner. Couplet margins were simulated for fifteen regions from 2017 through 2020. Five scenarios were analyzed for the change in MPP’s effects under a 15%, 10%, and 5% drop in the price of milk as well as a 50% increase in the price of corn and a scenario where milk decreases 15% while corn prices simultaneously increases 25%. The results demonstrate that more than half of the regions have higher probabilities of triggering indemnities at every coverage level when compared to the US, MPP margin. Margins change in response to the policy effects, where lower coverage levels experience margin increase, and higher coverage levels experience margin decrease. In the US, MPP margin, risk reduction is observed at every coverage level. The program was found to decrease risk at most coverage levels, where higher shocks to the margin increased the protection offered by the program’s effects.

China is the world’s largest pork producer and consumer, and Hubei Province is one of the top pork production provinces in China. Since problems and risks have led to large-scale reduction of pork production and farmers’ income, Chinese government offers various policy measures to help farmers. Breeding sow insurance is considered as one of the most effective measures started in 2007. To better understand farmer’s need for breeding sow insurance and make proper policy insights, our research is the first empirical study in Hubei Province and one of the pioneer studies investigate farmer’s willingness to pay(WTP) for breeding sow insurance premium and preferred coverage level. Survey questionnaires were distributed to breeding sow farmers in 5 townships from Shayang County, Hubei Province. Based on random utility theory, we use tobit model to examine the factors that affect farmer’s WTP and preferred coverage level. The results showed that famers’ average WTP for premium was ¥14.4 and average preferred coverage level was ¥1191, both exceeded current values. Farmers’ trust towards insurance companies, household income, and knowledge about breeding sow insurance significantly affect their WTP and preferred coverage level.