Corn Futures Price Insurance Pilot Case Study

The price of agricultural products in our country has been under the palm acquisition policies of the government intervention,the pace with the rapid development of market economy in our country is not harmonious,also creates long-term distortions,agricultural prices decouple with the market price,thus increased the government's financial burden,damaged grain farmers enthusiasm,lead to serious problems agribusiness losses.Therefore,in order to change this situation,the model of "insurance+ futures",which is supported by the government policy,first started in the northeast.The "insurance + futures" model addresses the problem of long-term distortions in agricultural prices,so it is important to explore this model.This article chose the northeast corn futures price insurance pilot as an object for research,through the analysis and discussion on this model,in the hope to find a way to benefit all parties to the participation and promotion model.Firstly,this paper introduces the realistic background and theoretical background of the pilot case,summarizes the existing research,and introduces the process of the case.Secondly,analyzed the farmers,insurance companies,as well as the profit and loss of the futures company,probes into the insurance company to buy over-the-counter put option pricing problem of the process of dynamic replication options and futures companies hedge,and points out the problems existing in the actual operation;Again,through to the farmers,insurance companies,futures companies behavior model of optimization,and the introduction of commercial Banks to provide policy pledge financing support and government policy inclination and so on way to participate in the pilot;Finally,comprehensive analysis made by the government through fiscal special funds subsidies premiums,ratio of peasant household has its own money to buy the insurance of insurance company,then the policy pledge financing to expand production to commercial Banks,insurance companies buy futures companies put options outside of reinsurance,futures companies rate reductions in the meantime,the government through the futures company,financial subsidies to reduce the loss of such a optimization model.