Across the developing world, governments are grappling with the challenge of how best to support small-scale farmers in ways that do not damage the environment. A new study from China - where the problem is particularly acute - has found that government subsidies for crop insurance are a potential solution. According to the study, such subsidies help protect farmers from the economic impact of crop failures and reduce the amount of pesticides they use. In addition, this approach is in line with the guidelines of the World Trade Organization (WTO), of which China is now a member.

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