Study On Hog Price Index Insurance In China

China is a developing agricultural country, the sustained and steady development of agriculture is related to the national economy and even the entire social stability. And as the world’s largest producer and consumer of live hogs, China is the world’s largest pork market, the hog industry is an important part of agriculture in China. Since 2007, China has launched a nationwide policy hog insurance system which get the financial support of the government at all levels in the process of pushing, and has made great achievements in improving farmers’ ability to resist risk and stability of farmers’ income. However, with the rapid development of hog industry in recent years, the hog market price volatility has increased continuously, even frequent boom collapsed, not only brought inconvenience to residents’ daily life consumption, but also increased the risk facing hog farmers, and had a big impact in smooth running of our price. Thus, the traditional hogs insurance which for risks that caused by disease, natural disasters and accidents have been too single, hog price index insurance gradually into people’s horizons and caused wide attention. At present China has been carry out the pilot business in some provinces and regions, but China’s live hog price index insurance is still at the initial stages of exploration. This article take this as a starting point for research, commitment to provide certain reference for the China hog price index insurance business in China, protect China’s price running smoothly, and promote rural economic development.At the beginning of selecting topic and in the process of writing, author read a lot of literature, firstly make an overview of hog price index insurance, then define the relevant concepts and characteristics,in order to support the later research also introduce some basic theory which the hog price index insurance involved including supply and demand equilibrium price decision theory, elastic theory and the cobweb theory. Then, this article introduce hog industry in China, the hog price and hog prices index insurance development present situation in detail,and analyze the problem of hog price index insurance in our country in the process of exploration include government support deficiencies, loss of hog futures market, the lack of real-time and authoritative monitoring statistics, the lack of professional talents and the regional differences of product is not obvious, on the basis of experience and practice of the United States and Canada which have a mature development in hog price index insurance, measure the average hog grain ratio combined with statistic data of farm price of hog and price of second-class corn actually paid by farmers in Heilongjiang province from 2010 to 2014, and analyses the operating risk of an insurance company. Then, this paper put forward reasonable suggestions combined with the actual situation of China including government organize and promote, establish hog futures market, improve the detection statistics system, cultivate professional talents, insurance policy keeping "localization", strengthen the supervision work, and has certain realistic guiding significance to promote and develop hog price index insurance in China.