A Lead Strategy Research Of Chinese Farmers Participation In Agricultural Products Futures Market

In the 21st century, with the globalization of the world economy, China's agriculture is facing more and more intense competition. The strenuous fluctuation of the agricultural products' prices makes it very tough for farmers to adapt their 'Small Production' to the changing 'Big International Market', thus resulting in the sales problem of grain. It is very emergent of farmers to find a new stable way to increase their income. This paper is focusing on how to lead Chinese farmers to increase their income stably by participating in futures market.Futures market is the product of high developed spot market, and it is also an important part of grain market system. There are bright prospects for futures market to increase farmers' income. The function of price discovery and hedging of futures market plays a big role in adjusting farmers' planting structure, promoting modernization of agriculture, improving agriculture efficiency, directing production and marketing of agricultural products and increasing farmers' income.Chinese farmers are weak, small and dispersed with strong traditional small farmers' mentality and low educational level. At present, the main way for the Chinese farmers to participate in futures market is referring to price information of futures market. There is only a very low rate for them to take part in the futures market directly or indirectly. The knowledge and using level of futures market are not enough.This paper advises Chinese farmers to emancipate minds, focus on study and heighten their ability of knowing and using futures market by feasibility analysis of participation in futures market for farmers through the function of price discovery and hedging in futures market. According to Chinese farmers' own characteristics, it is very difficult for them to participate in futures market directly. Chinese farmers may cooperate with agriculture cooperative organization or key agricultural enterprises to participate in futures market indirectly by using the futures market experience of foreign developed countries' farmers for reference, thus leading farmers to find a new stable way to increase their income.