Research On The "Insurance + Futures" Model Of Agricultural Product Hedging

The "Insurance + Futures" model is a new type of hedging tool that is born from the combination of the advantages of traditional hedging instruments Insurance and Futures and the limitations of the independent use of Insurance and Futures.In the background of the government's huge financial expenditure brought by the Policy of Reserve and the Minimum purchase price,the mechanism of agricultural product price formation urgently needs to reform to ease financial pressure.Making the market the dominant force in price formation is the main direction of the reform.It may lead to large fluctuations in agricultural product prices,causing large losses for farmers,and therefore requires more effective measures.However,the risk of the two traditional hedging instruments Insurance is too large,the Futures market is highly specialized,and there are many limitations when it is used independently.On this basis,the "Insurance + Futures" model born on this basis has important research significance.Based on the case study method,this paper systematically studies the operation process of "Insurance + Futures" model and its application value.First of all,from the necessity and feasibility of a detailed analysis of the "Insurance and Futures" model of the birth of the reason;Secondly,taking the corn pilot project in Zhenlai County,Jilin Province in 2017 as an example,the operation process of the "Insurance + Futures" model is comprehensively described.Including a series of processes such as the design of insurance products based on Futures prices announced by Futures exchanges,the replication of over-the-counter options using Futures closing prices,the use of Futures companies to hedge risks in Futures markets,and the settlement of mature insurance payments,The key points and difficulties in the operation of "Insurance + Futures" model are analyzed.Finally,the paper analyzes the application value of "Insurance + Futures" model,the difficulties possible encountered in the actual operation and the corresponding solutions.In the past four years of implementation,the coverage of the "Insurance + Futures" model has been continuously expanding and the variety of coverage has been increasing,and it has been favored by all parties in the society.This model has not only achieved poverty alleviation,guaranteed farmers' income,but also effectively reduced government financial expenditure and achieved the purpose of serving the real economy.