Study On Agricultural Catastrophic Risk Management From The Perspective Of Bondilization

As the foundation of national economy, agricultural production in China encountered many disasters in recent years, such as flood, typhoon, drought, hail, earthquakes, snowstorms, landslides and mudslides which caused immeasurable loss. Life of the peasants were threatened, process of production was ruined and the rural economy was destroyed. How to solve the problem of managing agricultural catastrophe risk, either in theory or in practice, is becoming more and more imminent.The goal of agricultural catastrophe risk management is to break through the difficult problem of finding ways to compensate agricultural losses caused by agricultural catastrophe risks. Agricultural catastrophe risk bond, as an important innovative tool, not only meets the needs of financing for compensate agricultural losses but also benefits for catastrophe risk diversification.Based on the bondilization perspective, this study first analyzed the literatures of domestic and international about the catastrophe risk bond, and then raised the issues of agricultural catastrophe risk securitization. After giving the definition of agricultural catastrophe risk, this study discussed the properties of the agricultural catastrophe risk. On the basis of analysis of catastrophic risks, the ways of agricultural catastrophe risk management were discussed. In the third part, this article analyzes the practical problems of agricultural catastrophe risk diversification from the perspective of farmers, government and the market, for the reason of multi-agent, multi-level attributes to agricultural catastrophic risk. From the practical needs and theoretical analysis perspective, this study found the significance of issuing agricultural catastrophe risk bonds. Studies from the aspects of the organizational forms and cash flows, the term structure, the trigger mechanism and the credit rating were made to find the general path of agricultural catastrophe risk bondilization, which provide theoretical support for China’s agricultural catastrophe risk securitization.