Risk Management In Contract Farming Development Research

Contract farming is derived from agricultural industrialization process, it has many advantages, such as reducing operational risks and costs of industrialization of agriculture, which would help to resolve many problems, like the problem between small-scale production and huge market demand. Solving problem not only help farmers increase their income, but also has a strong sense of values in guiding farmers. Marketization and internationalization of agriculture is increasing, at the same time, the problem has cropped up, the most prominent problem is the huge risks in the process of operation, these risks not only affect agricultural economy, but also affect the farmers’enthusiasm of planting. To circumvent the risk in the process of operation of agriculture, there is a must that we need to introduce agricultural futures markets. Jin Li wheat corporate company corporate champion in Yan Jin county makes use of limited company of agriculture products to carry out hedging for wheat order and achieve great effects,creating a great sensation. However, several years later, the company has stopped commodities trading. Therefore, the study takes effect for the development of contract farming in both theory and practice, in which include the development of contract farming, the function of agricultural products’forward, and problems existing in forward market’s hedging which is brought into agricultural order, Combining the present agricultural development concluding and arranging the related references, this essay analyses the reasons of contract farming’s risks and the methods of avoiding it, states the forward market function of agricultural products as well as analysis the obstruction met in the way of hedging of the wheat order in Yan Jin county. The following is the main contents in this essay:Chapter one mainly talks about the meaning, thought, background of studying essay, and the key, confused, creative points of this essay, Chapter two is about the review and research of relevant references for contract farming at home and abroad, Chapter three, the essay classfies and analysis different types of risks in contract farming, then summarizes current situation for research about contract farming and agricultural products’ hedging. Chapter four digs into the present planting situation and the problems lying in wheat forward order in Yan Jin, also analysis developmental hinder while introducing forward market into contract farming. Chapter five present the enlightenment of main policies.