Researches On Modes Of Farmers Being Involved In Agricultural Futures Markets

At present, it is a serious and difficult question in "three-agriculture" to dissolve the tradeoff between the little production and big market. Some scenarios, such as the prices fluctuation of agricultural goos in the spot market, the low rate of executing the order-farming contracts and the high risk of agricultural production, seriously restrict the incoming improvement of farmers, heightening effectiveness of agriculture and development of countries economy. The experiences of developed countries show that the future market can take an important role in promoting the contemporary agricture, pushing the industrization of agriculture and blancing the revenue of agriculture. In China, the farmers lack of the money, operate the few lands, and are short of future market. So, it is an important role in present "three agriculture" work to help the farmers take part in the future market for long ledge, which can avoid the operation risk in agricultural production. This paper aims to illustrate the availability of the connection between farmers and future markets, and design the connection modes and running mechanisms according to the successful experiences from developed countries. We believe in that these connection modes designed by this paper can help the govement to make the related decisions and resolve the connection between farmers and the future market.This paper will apply some methods, such as combined empirical analysis with normative analysis, combined qualitative analysis with Quantitative analysis, spots investigation, cases analysis and econometric model, to resolve the above questions. Meanwhile, this paper will be outlined as the thread of "present situation description-theoretical analysis-modes designs-policy suggestions" based on some related concepts and literature review. Specifically, there are six sections in this paper. Firstly, the necessity to take use of long ledge to avoid the risk of price fluctuation is analyzed from the view the relationship between farmers’income and agricultural productions price, adjustment of agricultural structure and the functions of future market. Then, the status quo of connection between farmers and future market is investigated from scale of future market related to farmers, aims and connection ways, and the restrictive factors are considered from the production size of farmers, financial strength, skills and knowledge and information conditions. Thirdly, the participant modes are designed to help farmers connect the future market. In the last, some conclusions and countermeasures are developed to connect well the farmers to the future market from the view of government, companies and farmers.Some conclusions are developed as follows. Firstly, under market economy, the prices of agricultural products fluctuate with the seasons, and the farmers are in urgent need a tool to avoid the risk. Secondly, the future market can take this task to long ledge. From the investigation in detail, we find that the participant future market extent of farmers is low from participant size and participant depth. Thirdly, the desire of farmers to participate the future market are affected by their operation situation, society economy setting and agricultural production future, especially by farmers’organizational degree, the knowledge on future, operation scale and income level. Lastly, though some connection modes can be selected, however, at present, the farms are not able to participate the future market directly, and the better mode is to participate the future market with indirect mode, such as "Farmers+company+future" mode and "Farmers+professional cooperatives+future". Meanwhile, the "Farmers+future investment fund+future" mode will be the future development direction for farmers to participate the future market.Furthermore, according to the possible difficulties and obstruction in carrying out connection modes, and further focusing on the connection farmers’production with agricultural commodities future market effectively, this paper provides some countermeasures and policies advices from the views of policies, farmers, industrial development and commodities exchange respectively, such as, from the level of policies, to list more bulk agricultural products, to support the hedging from agricultural firms, to open the agricultural commodities to foreign actively; From the level of farmers, to actively induce farmers to conduct trade in future market, to spread more commodities information in future market in time and accurately; From the view of industry development, to breed the service agencies in countryside and leading corporation in agriculture; From the view of commodities exchange, to breed more institutional investor of agricultural commodities future market, to develop the agricultural commodities options in the right time to improve the commodities market system, to perfect the law system and monitor system of commodities future market, to build the risk-checking system and to less the systemic risks in future trade.