Studies On Price Fluctuations And Target Price Insurance Of Potato In Inner Mongolia

Target price insurance for agricultural products is a kind of policy-based agricultural insurance.As a tool for market risk management,its main role is to make up for losses incurred by producers due to falling prices.In 2015,Wulanchabu City launched a pilot of potato target price insurance to incorporate market risk into the agricultural insurance system,in Inner Mongolia.But what are the characteristics of potato price fluctuation in Inner Mongolia? How effective is the implementation of price insurance products? Does it stabilize the income of farmers? What is the extent of making up for the loss of farmers? What are the problems in the pilot development and how to better promote the development of price insurance products? Based on this,this article makes an in-depth study of potato price fluctuations in Inner Mongolia and the development of target price insurance.Firstly,based on the decomposition of the price fluctuation of potato in Inner Mongolia,this paper clarifies the risk of price insurance protection as a random risk of potato price fluctuations to illustrate the feasibility of implementing the Inner Mongolia potato target price insurance.Then,it explain the development of the potato industry in Inner Mongolia and the launch of the potato target price insurance pilot.At the same time,from the microscopic point of view,using survey data to analyze the role of loss compensation about potato target price insurance,while,found that,among all the surveyed farmers,the target price insurance for potatoes to make up for the loss of farmers can reach 20%,To a certain extent,the potato target price insurance is indeed made up for the farmer's loss caused by market risk and ensured the enthusiasm of the farmers.Secondly,there are also many problems in the pilot development.For example,expedited insurance legislation;inadequate financial support from the central and autonomous regions;imperfect price information mechanisms;high insurance barriers;less insurance contract production level;Inadequate corporate publicity and incomplete consideration of target price setting.For the issue of target price setting,this paper proposes a new setting method,using forecast prices to determine target prices,meanwhile,using time series models to test the predictability of potato prices in Inner Mongolia and prove that it can indeed make a predictions to potatoes.Finally,in order to promote the sustainable development of potato target price insurance in Inner Mongolia,this paper proposes the following suggestions about the future development of potato target price insurance from views of government and insurance companies : The government level: by the improvement of legislation to regulate the potato target price insurance work system;While including potato target price insurance in the autonomous region's financial subsidies,it actively strive for subsidies from the central government;building a potato price information monitoring platform;Insurance company level: lowering the threshold for potato target price insurance,allowing more farmers to participate in it;strengthening the promotion of insurance products,providing farmers with the understanding of potato target price insurance;distinguishing the grade of insurance output,meeting the needs of different rural farmers for insurance;using the predictability of the target price of potatoes,and improving the setting of target prices.The study of this paper is intended to analyze the compensatory effect of Inner Mongolia's potato target price insurance on farmers' losses,and how to make up for it is mainly to obtain feedback from the insured farmers because farmers are the real beneficiaries.At the same time,through discussions with local insurance companies and actual visits and observations,found there are some disadvantages in the target price insurance of potatoes,and made targeted suggestions for future improvement,aiming at proposed design ideas and policy recommendations for the full implementation of potato price insurance in the Inner Mongolia Autonomous Region and even expand the protection area of price insurance.