Chinese Farmers' Use Of The Futures Market

Our country is a large agricultural nation."The three rural issues" has been in relation to the development of national economy. The party's 17th third session point out that, we should make "The three rural issues" as the gravity of our whole work, leave no stone unturned to promote farmers'income continuous growth,and and promote the development of rural economy. Many factors influence the farmers' income, such as production risk and market risk, financial risk, etc., but the main one is the market risk. Futures trading, which originated from the agricultural product market, has the price discovery and avoid risk function,due to its unique trading rules, institutional arrangements. If farmers apply it to the agricultural production, it can help farmers adjust agricultural production and sales through the price information, it can help farmers evade price fluctuation risk through hedging. In the 1990s,the United States begin to guide the farmers apply futures trading to the agricultural production and achieved good resultsIn the 20 years of China's futures market development, although we have made considerable progress, farmers for futures market is still very strange, the level of participation in the futures market is very low and the attention of price information is not high,the function of the futures market in agricultural production cannot exert. Connecting with the practical situation of China and the experience of America, this paper propose some measures and suggestions to promote farmers to use futures market:speed up the development of the agricultural industrialization and improve agricultural spot market; conduct futures knowledge training for farmers; develop farmer cooperative economy organization; establish agriculture information transmission mechanism; construct the rural financial system; perfect agricultural futures market.