Research On The Prevention Of The Default Risk Of The Order Form Agriculture Based On Hedging Strategy

Order agriculture as China’s current agricultural industrialization management of a representative model, since it has been vigorous development, effectively promoted the development of agricultural modernization in our country, and promote the development of agricultural economy, make an important contribution to improve the income of farmers in our country; but with the deepening of China’s market-oriented reform and joining in the world trade organization gradually highlighted the competition pressure at home and abroad,to the development of agriculture of our country order brought great influence. The greatest impact was undoubtedly the market risks arising from the order of agricultural performance rate is extremely low, although agricultural products industry has been suffering from the impact of natural risk, but the current of agricultural products industry more and more is from the market price risk, under the market-oriented reform, the gradual liberalization of the prices of agricultural products of our country and accession to the WTO, domestic agricultural products facing competition from foreign agriculture in developed countries, in this case, the prices of agricultural products in China often abnormal fluctuations, this is the normal operation of contract farming in China is obviously unfavorable, resulting low rate of agricultural order performance.Aiming at the problem, this paper first systematically the previous scholars’ research on contract agriculture, and a careful analysis of the its analysis of the breach of promise of contract farming, in affirming the predecessors made positive achievements in the above,this thesis think both based on transaction cost theory or the incompleteness of contract farming contract analysis, are not enough to completely solve the problem of order agricultural performance, because order agriculture contracts signed in nature is not a complete contract, especially in our country. Under the market economy, the participants chase to maximize their own interests, is the embodiment of economic man, but agricultural order contract formulation is not sufficient to constraints in the main profit driven, which is the objective law, so on the basis of previous research, this thesis think market participants by profit since can not effectively restrict, should be guided, expand the scope of participation in the main body of the, in the larger space will order agriculture contains market risk transfer out, so as to enhance the intrinsic stability of order agriculture, improve the compliance rate. Based on the innovation theory and draw lessons from the experience of agriculture in developed countries, this thesis think positive combination of financial market to develop order agriculture should is a direction for future orders of agricultural development of our country, after all, finance is the core of modern economy, in theoperation of modern market economy the risk will be eventually showed for financial risk,and financial derivatives market as a modern financial market is the core, development order agriculture should use financial derivatives market.Based on this, this thesis advocates hedge strategy is added in the existing order agriculture mode, the previous "company + cooperative + farmer" order agriculture model modified into "order + agricultural futures and OTC options" mode, the new model can be used to solve currently China s exchange traded futures varieties, low coverage, exchange traded option lack of variety. At the same time, through the study of OTC options in individualized risk management using that OTC option flexibility, low cost, risk is more likely to control etc can be effectively used in agricultural practice in order to. In the new model, government of options trading in the process of produce the premium subsidies does not violate WTO rules. Therefore, the introduction of OTC options for the new period to resolve agricultural order contract default risk has important significance. Institutional innovation and patterns of change, organizational improvement, order agriculture new model will promote the steady development of order agriculture in our country in the new period, a strong impetus to China’s rural economic development, increase the income of farmers, to promote the construction of a new socialist countryside.