Effect Of Financial Subsidies On Channel Choice Of Agri-food Supply Chain

The contradictions of our country agricultural product production and marketing are still outstanding.In recent years,the Central Party continues to publish relevant policy to ensure that the agricultural inputs only grow,such as subsidies,insurance and so on,it actively guide the development of modern agriculture and safeguard farmers' basic interest.In this background,the process of our agricultural production and operation organization speed up,it comes up the diversified production and operation organizations of professional investors,farmers cooperatives,family farms;the circulation channel structure also evolves gradually from the wholesale market which is the core of traditional channels to multi-channel coexist.This raises new questions to the choice of agricultural products supply chain channel.According to this,we considerate the external factors of government subsidies,study the effect of subsidies for the choice of agricultural products supply chain channel,which has important practical significance and theoretical significance.This paper select two kinds of insurance financial tools,one is agricultural insurance which are response to production risk,the other is target price insurance which are response to marketing risks.On the basic condition which the government provides premium subsidies,we put government subsidies to agricultural products supply chain decision-making model,mainly use the game theory and optimization theory to study functional mechanism of the agricultural insurance subsidies and target price subsidies to agricultural products supply chain channel selection.First,according to the acquisition and trading mechanism of the producing area of our country agricultural products,farmers' bargaining power is weak.In order to strengthen the cooperation with farmers in traditional channels,supermarkets often offer purchase contracts to protect the basic interests of farmers.Facing the different way of bargaining,we build supply chain decision model which the farmers choose target price insurance,analyze the influence of the price target insurance on farmers and supermarket channel choice.Then,we turn to the agricultural production,considering the natural disaster risk exist in the process of agricultural production,which are easy to cause the damage to the peasant household production.We constructed supply chain decision model that farmers participate the agricultural insurance,solve the optimum planting area farm,analyzed farmers' and supermarkets' channel options in different conditions,finally we discussed the influence of thepeasant households take agricultural insurance and the target price insurance at the same time on the channel choice.Results show that when the government subsidizes the farmers and encourage farmers which take traditional channel choice to participate the target price insurance.When the price is higher than the purchasing price in the field,farmers will get target price insurance,so as to achieve the aim of stable income.Compared with the target price insurance subsidies,agricultural insurance subsidies for farmers and the impact of supermarket channel selection decision is not significant,but the agricultural insurance subsidies is beneficial for the promotion of farmers using agricultural insurance to transfer the risks,get compensation to reduce revenue losses when natural disasters occur.Therefore,the government actively guides farmers to participate in the target price insurance and agricultural insurance,to a certain extent;it can reduce the risk of production and marketing,so as to improve the efficiency of the agricultural products supply chain.