Research On Risk Transfer Mechanism Of "Company + Farmer" Pattern Based On Weather Index Insurance

As the main pattern of agricultural production in China,the stable operation of the "Company + Farmer" pattern is an effective way to promote the development of agricultural industrialization and solve the problems of "agriculture,rural areas and farmers".Due to the influence of natural factors such as weather on agricultural production,the "company + farmer" pattern of agricultural production between companies and farmers often faces great risks,thus affecting the stability of the "company + farmer" pattern.This will restrict the healthy development of industrialization of agriculture of our country seriously.Therefore,under the pattern of "Company + Farmer",this paper studies how to transfer the internal risks in the supply chain of company and farmer,so as to improve the performance of company and farmer and promote the steady operation of "Company + Farmer" pattern.Firstly,in view of the characteristics of vulnerable to the weather in agricultural production process,this paper takes the "Company + Farmer" pattern as the research object,using the newspaper boy theory establish the cooperative production models between the company and farmer,and analyzes the profit situation of the company,farmer and supply chain system.We were designed a based on weather index insurance risk transfer contract mechanism,before and after the implementation of the contract the company were analyzed by using the theory of optimum and farmer’s performance improvement situation,and demonstrates the feasibility of the designed weather index insurance contract,and further analyzes the contract enforceability satisfy the constraint conditions and weather index insurance to transfer the risks of supply chain.Finally,the validity of the designed contract mechanism is further verified by mathematical analysis.Second,in the case of the weather affects agricultural output,for by multiple loss aversion behavior of farmer and individual risk neutral company of "Company + Farmer" pattern,from weather impact on farmers agricultural capital investment level,farmers loss avoidance,firm cooperation was analyzed,and the size of the Angle to study the weather influence on agricultural capital investment level,farmers loss aversion behavior of farmer decision and it is concluded that the influence of the size of the company the best cooperation.Based on weather index insurance,a risk transfer mechanism related to weather index and farmers’ loss avoidance coefficient is designed.Under certain conditions,the designed contract can reduce the influence of weather and farmers’ loss avoidance behaviors on farmers’ agricultural investment level and transfer weather risks,so as to improve the performance of the company and farmers.In addition,this paper further found that when the severity of severe weather,weather index insurance can not only overcome the performance loss caused by loss aversion but also bring additional benefits.Therefore,the research shows that when the decision-making subject of supply chain is faced with external weather influence,the risk can be transferred by purchasing insurance.Finally,this paper elaborates on the research conclusions and management significance of this paper,so as to provide theoretical reference for agricultural supply chain management and relevant decision makers.In addition,the limitations of this paper are analyzed,and the further research direction is prospected.