The Construction And Empirical Research Of "Contract Farming And Future" Model

Since 1990, contract farming has expanded rapidly in china. The contract farming is playing a key role in promoting the development of rural economy. The contract farming which is the necessary tendency of agricultural development at present market economy, benefits for adjusting agricultural structure and implementing agricultural modernization and industrialization management to develop the contract farming. However, the contract farming as a kind of selling of the agricultural market, there are always some problems in the practice, which mainly are the between the producers and the sellers and the phenomenon of breaking an agreement. These problems are in the way of the progress of national agricultural general adoption of the market principle and agricultural industrialization operating.On the basis of the predecessors, the author borrows the achievement from the contract farming theoretical and future theoretical research and from the agricultural firm lived and developed. And the author also draws on the wisdom of the masses. From the practice of the development of our national contract farming, the thesis adopts contract economics, minimum risk about futures hedging, and takes advantage of the case study method, the method of combing qualitative with quantitative analysis. The author finds the model which includes two parts— contract farming and future. The main conclusions of the study are as follows: (1) Agricultural future market develops on the basis of cash market and feeds back on cash market actively by effective exertion of its function, but its function could be exerted fully on condition that cash market is developed and perfect. Concretely speaking, cash price fluctuates frequently and has large amplitude, and cash market is close to perfect competition. (2) As a whole, china's agricultural futures market increasingly runs in good shape and its function emerges preliminarily. We can take advantage of the developing hedging theory to avoid the production and management risks of spot enterprises which hold the contract farming: (3) The problems of minimum risk about future hedging are efficacious. (4) Spot enterprises that practice "contract farming+ future" will reduce the risk from the price.