| Where China is a country with frequent natural disasters, farmers havelimited choices to disperse such natural risks and it is necessary to establish amechanism similar to insurance to help farmers disperse production risk. Asone of the support agriculture policies permitted by the WTO, agricultureinsurance is an important tool to disperse agriculture risk. In recent years,attentions from academics and decision-making parties on agricultureinsurance raise subsequently. However, development of agriculture insuranceis far less than our expectation. China Central Government proposed toestablish the Chinese political agriculture insurance system as soon aspossible in three No.1 documents in 2004 and in 2005 and in 2006. On theother hand, farm produce time-bargain is an important channel to disperseproduction risk, corporations and farmers should participate in time-bargainsteadily so as to play the role of" manostat" for agricultural development.This paper applies utility theory, economical cortrol theory, distributedparameter systematic theory and option pricing theory. This paper expects toprovide an effective way for study agriculture risk and its evadablethchnology by mathematical model. |
