Application And Cost-benefit Analysis Of Agricultural Product “insurance + Futures??

Under the background of the continuous improvement of agricultural scale operation degree,the proportion of production cost and investment amount,and the increasing risk sources of agricultural risk chain,agricultural and rural insurance in China is mainly reflected in the drastic fluctuation of agricultural product price and farmers’ income.In terms of agricultural risk management,agricultural risk management systems of various countries have gradually formed a mode of comprehensive innovative development that takes agricultural insurance as the main line and promotes agricultural insurance,agricultural futures and other financial instruments such as bank credit in the long-term development process.The insurance+ futures model has become the mainstream of current development.China’s agricultural risk management has also shifted from direct production cost subsidies to focus on agricultural insurance development,promoted the pilot project of insurance + futures,and gradually built a multi-level agricultural insurance system development mode.Based on the analysis of the necessity of the development of insurance + futures model and the relationship between insurance + futures and traditional agricultural insurance,this paper finds that insurance companies can effectively realize risk dispersion and loss compensation by concentrating professionals,data,technology and management means on the basis of literature research and theoretical analysis.It plays an indispensable role in the social security of special industries with weak quality,such as agriculture.Futures market has advantages in market structure,behavior,information and price determination.Taking futures price as a guide has theoretical reliability.Through combing the development process and status quo of agricultural insurance,agricultural futures and insurance +futures models in China.This paper analyzes the overall situation and problems of China’s current insurance + futures model.It is found that commercial agricultural insurance lacks the soil for development in China.The traditional agricultural insurance still has some deficiencies in product standardization,product hierarchy,construction of risk dispersing mechanism and subsidy mode.China has a total of 27 agricultural futures varieties at the end of 2021.At present,in the construction of agricultural insurance and futures market in China,it is emphasized to strengthen the pilot of insurance and futures.Insurance + futures was piloted on nine futures varieties,which are still relatively few.Since 2015,China’s insurance + futures program has been piloted nationwide,with many excellent typical cases.Through case selection,this paper selects 2019 corn futures pilot project of Zhalute Banner,Inner Mongolia,and makes a specific analysis of the pilot background,project process,contract design characteristics,project effect investigation,and cost and benefit of all parties.The study found that farmers’ satisfaction with the case was at a high level.The risk of the insurance company is effectively dispersed,and both the original insurance company and the reinsurance company benefit in the process.Through the design of futures contracts,futures companies control their maximum profit and maximum loss,and their own risks are effectively controlled.In the process of the project,the commercial exchange and the government only subsidize the premium,realizing the market-oriented subsidy mechanism.But there are still cases: the cognition degree of farmers is insufficient;There is still room for further improvement in the dissatisfaction of premium and compensation conditions.Corn main insurance in the target price is low;Income insurance cannot fully cover issues such as labor costs and land costs.In summary,referring to foreign experience,this paper puts forward contract optimization;Expand futures market support for the insurance + futures pilot program;Learn from American agricultural insurance operation system management experience to establish a two-way financial subsidy mechanism;Improving the reinsurance mechanism will be at the core of the government’s work.Strengthening personnel training and knowledge training;It is suggested to set up complete cost insurance,develop complete income insurance,and promote the combination of insurance and credit to achieve long-term high-quality development of insurance +futures model.