Government Intervention In Agricultural Risk Management

With the development of the economy, agricultural risk shows a complicated trend, and have a serious influence on the development of the agriculture and the increase in farmer's revenue, correspondingly, the Main body of agricultural risk management is in the state of low efficiency or absence all the while, which makes the research of agricultural risk management exigent.There are many forms of market failure in agricultural risk management, such as the enlarged fluctuating price of agricultural products, the market risk causing by the imperfection and dissymmetry of information, the supply bug causing by communion attribute of information, the lack of mechanism of share in the cost during the system innovation, and so on, which brings the need of government intervention to agricultural risk management.The agricultural risk of China shows different trends Since 1990s. The realization to enter the WTO makes the old agricultural risk more serious, and brings new risk. Though the former government intervention managed agricultural risk in different way, the failure has been proved by the practice. How to select the right way to manage risk after identifying the risk in order to manage risk is a question that the government must think before doing.It is the money and policy goal of agriculture that determines the way that government intervention brings many subsidies. But our government intervention can only operate in a limit way. Thinking of fact that our country has entered to WTO, the design of mechanism in which the new cooperated insurance which property right intervention in one way occupies the main position, and disaster assistance of government occupies the subordination position, is a efficient system arrangement the same as the design of mechanism in which information supply occupies the main position, and protected price, sustained revenue, and so on, occupies the subordination position. Policy selection basing those will determine the effect of government intervention.There are seven chapters aggregately:Chapter one. Foreword. Including background, purpose, significance, method, frame, status and value of foreign research, innovation and shortage of research.Chapter two Explaining the reason why the government gets involved in agricultural risk management, Expounding the cobweb theory, theory of information bug, theory of system innovation.Chapter three. Making a deep analysis of background of government intervention to agricultural risk management;Annotating the risk concept again in terms of welfare economics; Annotating the meaning of the risk as the welfare result of the loss or the profit-making; Explaining the concept, classification, formation mechanism of agricultural risk accordingly;Using the indexes such as coefficient of variation to measure and analyze the situation of agricultural risk in our country.Chapter four. Appraising situation and performance of government intervention: Reviewing the strategy which made up by government and particular emphasis on natural risk management and market risk management; Analyzing the operation mechanism and limitation of the policy of government intervention.Chapter five Summarizing practical experience of natural risk management and market risk management of government intervention, Pointing out that government intervention of high financial subsidy is commensurate with agricultural development policies.Chapter six. Designing the operation mechanism of risk management of government intervention. In the mechanism of natural risk management; examining the essence of the insurance closely again in terms of property right economics at first; then, Based on some case, analyzing and pointing out the basic reason that present agricultural insurance fail to operate is that it never cognizance the property right of insurance premium; finally, pointing out that the only way of the agricultural insurance is to promote the system innovation based on new-type co-operative insurance organization that the property right gets involved in...