Research On The Mechanism Of Increasing Income In Main Maize Producing Region In The Northeast Based On Futures Market

In addition to the United States, China is the second largest country in production and marketing of corn and corn is among the most important grains varieties in China. Whether the production and circulation is smooth or not ,it is not only has a direct bearing on the food security issues, but also relates to the corn industries'stability and development in market economy. The northeast region as a important grain production bases in China, the output adds up to more than 30%.Ideal sales prices is of great significance on the increase in farmers'income. Along with the conduct of the grain circulation system, the corn price has gradually liberalized and fluctuated. As the spot market information is short-term and the cycle natures of the grain production, the agricultural producers always face great market risks. In this context, corn futures successfully listed in Dalian Commodity Exchange in September 2004.In order to enable the futures market to effectively serve agricultural production and increase in farmers'income. This article started with the two basic functions of corn futures market and proved that corn futures market functions well from theory and practice aspects. Futures market does play an active role in increasing farmers'income. The author of this article identified the influencing factors which restrict farmers entering futures market by investigation and study in Fangshen Tuen in Siping City, Jilin Province and found the major influencing factors by using DEMATEL method. Combined with these factors, in view of several models involved that farmers use the futures market to increase income, the author took a detailed analysis and made corresponding countermeasures and suggestions.The main research says:Firstly, the author started with introduction of importance of corn in the national economy and corn futures prices to the increase in incomes and led to existing problems which affect farmers'using futures market. The author proceeded to put forward the issue of how to establish channels which could connect futures market and farmers. The author sorted out the framework and technical route of this study after reviewing domestic and foreign scholars'relevant theoretical results.Secondly, the author introduced the two basic functions of the futures market and its important function of promoting increasing in farmers'income. The article made quantitative analysis for its price discovery function by correlation analysis and led to the result that the basic functions of corn futures market play well. Farmers'using futures market has theoretical possibility. By introducing the practice that farmers of developed countries use the futures market, the article further confirmed futures market plays a very important positive role in the process of promoting increasing in incomes.Thirdly, the author conducted actual research by question and answer survey. After systematically analyzed the investigation result of Fangshen Tuen in Si-ping City, the author identified the influencing factors which restrict farmers entering futures market. The author of this article analyzed these factors by using DEMATEL method after combined with these factors. The author found some important top five factors: the level of economic development in rural areas, the production and business model, the services functions of government whether to play well, strong or weak adaptation of commodity and food sales model according to the size of degree of center of the factors. Moreover, some factors such as the degree of acceptance of futures market, educational attainment and organization of farmers also played a more crucial role.Fourthly, the author made detailed exploration and analysis on the form of"cooperative economic organizations"and"company plus farmers, futures plus orders"and proposed corresponding countermeasures and suggestions. On this basis, the author suggested that the government play the guiding role as soon as possible and early warning mechanism of futures prices be established according to current national conditions. It would made early warning information and guidance when the futures prices occur big changes through organizing experts and assisting the agricultural leaders so as to provide necessary support and help for most farmers'using futures market.