Application Research Of Futures Price Insurance From The Perspective Of Food Security

The food security relationship can affect the national economy and the people's livelihood.The minimum purchase price of grain and the temporary purchase and storage policy was originally designed to stabilize the price fluctuations in the grain market and maintain the enthusiasm of farmers' agricultural production.However,this prescription at that time has become increasingly unbearable financial burden in the country.The reform of the target price system for agricultural products has improved many aspects such as raising farmers' income and reducing financial burden in the past period of time.However,the method of determining the target price of food lacks scientific and Impartiality,and makes it difficult to effectively spread risk systematic agricultural natural disaster risks and the risk of market price fluctuations.It has always become an insurmountable obstacle to the developing the system.As the insurance market and the futures market flourished,futures price insurance,as a financial product designed by combining the advantages of the futures market and the insurance market,quickly gained widespread attention from all walks of life.Since 2015,the futures price insurance pilot project has been gradually promoted,and the effect have begun to show.People have high hopes for the effect of futures price insurance to support agricultural productionAgricultural product futures price insurance is born out of agricultural product price insurance.The two are in the same line,and each has its own advantages and disadvantages Under the current level of financial services,agricultural product price insurance is simpler than agricultural product futures price insurance,and the contract design cost is lower.The insurance company's operational ability is not high enough,so it can be quickly accepted by more insurance companies.Compared with agricultural product price index insurance,agricultural futures price insurance can use the futures market to avoid systemic price risk.It can determine the target price relatively scientifically,effectively transfer the risk of agricultural product price fluctuations,expand the coverage,and promote agricultural modernization.It has a stronger promotion effect and can help agricultural producers to make full use of market information and choose varieties with better economic benefits and higher profit margins for planting.Futures price insurance is an insurance service provided by an insurance company.In the current pilot project,the government promotes and improvements the futures price insurance products by granting premium subsidies,subsidies for production and operation expenses,and tax incentives.Futures companies use the futures market to spread risk and collect premiums to get more sources of profitThis paper cuts into the analysis from the perspective of food supply chain,using literature reading method,case analysis method,qualitative and quantitative analysis method,analyzed that grain futures price insurance business may increase grain production output,improve grain planting structure,stabilize grain price and improve the efficiency of grain circulation and ensuring safety of food quality,etc.After that,the author analyzes the interest appeals of the three levels of futures price insurance participants and the game behavior between the subjects,and summarizes the conditions for the parties to participate in Although the interests of each subject are different,the choice of participating in the futures price insurance business can often increase the expected benefits of each entity,thereby increasing the overall welfare of society.The case study selected the cooperation case between PICC P&C and Xinhu Ruifeng.The case data is detailed and the model is representative.The project development and final results basically confirm that the development of futures price insurance can improve the level of China's food security.The end of the chapter explains the part of the case that does not exactly match the theoretical analysis.In the end,the author summarizes the above analysis results,and puts forward suggestions on the promotion method of futures price insurance and the coordination of interest distribution.