The Research Of "Insurance+Future" Model In The Service Of Agriculture

At present,the policy of temporary storage of agricultural products in China is gradually withdraw from the stage of history,the agricultural products of lowest price protection policy still can barely maintain,but the country is paying a huge price,it's time to reform the formation mechanism of China's agricultural products prices,and the main direction of reform is bound to gradually relax the control of the state,let the market play a more important role in the process of the formed of the price of agricultural products.Reduce control,let the market play a greater role will bring an impact,that is,agricultural prices will face increasing volatility.In fact,the policy of propping up the market has been made the prices of agricultural products reach the top,once let the market play a more important role,agricultural products prices will face downside risks,it's a good example that the price of soybean,cotton and corn whose temporary storage policy has been canceled fell down.Faced with this situation,many people will think why not use the two hedging tools,futures and agricultural insurance,to overcome the problems of China's agricultural products price reforming,but the current situation is that the agricultural product futures market is facing many difficulties in the service of agriculture,such as: the futures market trading system has many problems,the defects of the spot market development lag,agricultural operators and futures market exist docking difficulties.Look at the insurance market,although in recent years,the central document repeatedly proposed to carry out the prices of agricultural insurance pilot,but the price of agricultural products insurance are faced with many difficulties,the systemic risk of agricultural make insurance market cannot pass “the law of large numbers” for hedging and profit.We know,the futures market has two basic functions which is that price discovery and hedging,in theory,it can solve the problem which insurance market meeting when combined to the insurance market,and reaction in the futures market,to promote their own functions,so this paper will introduce the "insurance + futures" mode,trying to solve the crack in agricultural development through the joint of insurance and futures.This paper studies scholars in fields,using methods of literature reading,case analysis,qualitative and quantitative,first introduced the awkward situation when China's agricultural products futures market serve the agriculture,through specific data analysis,we conclude that China's agricultural products futures species is little,the structure of species is unreasonable,those have been listed are inactive.Then,corresponding to the agricultural futures market,this paper also introduced the awkward situation when China's agricultural products price insurance serve the agriculture,pointed out that the agricultural products price insurance faced two major problems in the application: the setting of the protection price is difficult,and the huge risk of compensation is difficult to disperse and transfer.Since the two hedging tools are all difficult to play a good role alone,thus it become necessary of the born of the new mode "insurance + futures".This article all explains the feasibility why "insurance + futures" mode is born from three aspects: agricultural product futures market price discovery function can help the formulation of the insurance price,the hedging function can also meet the insurance company's risk transfer desire,the agricultural insurance can promote agricultural futures market.Then,the paper introduced the operation mechanism.After that,the paper introduced the Xinhu Ruifeng corn "insurance + futures" pilot project,the Xinhu Ruifeng egg "insurance + future" pilot project,the Guangxi sugar "insurance + future" pilot project in detail,and introduced the experience of "insurance + future" from four aspects: "insurance + future" mode can reduce the financial burden of the government,and promote the reform of the price mechanism of agricultural products;"insurance + future" mode can promote the development of both the agricultural insurance and agricultural futures market,then serve the development of agriculture;"insurance + future" mode can help to solve the problem of agriculture.Then,the article introduced the existing problems of "insurance + futures" mode in the pilots from these aspects: the scope of the pilot small;farmers,grain companies,cooperatives lack of enthusiasm to join the "insurance + futures" mode;imperfect rules;lack of Exchange-traded option and government support.Aiming at these problems,the article gives some suggests that can perfect the application environment of "insurance + future" mode: Accelerate the pace of listing related futures market varieties,gradually expand the scope of the pilot;carry out special training,improve farmers' risk awareness and understanding of the market risk management tools;strengthen supervision,improve the operation rules;relax access standards of futures market,to speed up the options listed;increase the government support,increase financial subsidies to the docking mechanism of futures and insurance.Finally is the conclusion of the article,the author summarizes the full text,pointed out that there are still unresolved problems,and then give the development prospects of "insurance + futures" mode.