China Farmers To Use Futures Markets To Promote The Study Of The Income Problem

Futures market for its professional and highly complex organization, as the inevitable product of market economy, also becomes an integral part indispensable in the agricultural market system. Futures market price discovery and its unique function of risk aversion, in particular, with the hedging of its functions, to promote the development of agricultural industrialization, raising the level of agricultural production, agricultural enterprises to increase efficiency and production of agricultural planting guide structure optimization, the steady growth of income of the farmers in China, have played an important and significant role.Based on the current analysis of the characteristics of agricultural production, that farmers because of their own characteristics and the factors of the constraints of specific national conditions, though not have the directly conditions involved in the futures market, but this doesn't mean that our farmers can not use the agricultural futures market to hedge risks and to protect their income as well.This paper is divided into five sections describes how to use agricultural futures market to give our farmers better service, how to use the market price to avoid risk to low their possible economic losses and increase revenue.The first part is the introduction, describes the purpose and significance of this research, domestic and international situation and relevant research ideas and methods of this study.The second part outlines the development of futures markets and related profiles. Detail the basic characteristics of the futures market, including standardization of contract, trade concentration, two-way trading, leveraged mechanism and deposit system. Focuses on the futures market has the functions: price discovery and risk aversion. Then outlines the futures market traders: hedgers, speculators and arbitrageurs. Finally, introduce some of the major futures markets theoretical models, such as futures contracts pricing theory model, the futures and spot prices of convergence theory, and the related hedging theory.The third part describes the U.S. farmers use the agricultural futures market situation, analyzes the current status of agricultural futures markets, focusing summarized the current use of farmers in the agricultural futures market problems and difficulties.PartⅣdiscusses the agricultural futures market the significance of the income of farmers, including farmers can optimize the agricultural planting structure, allowing farmers using the hedging function of futures market to avoid the risks involved in agricultural production, also can use the futures market increase the risk function of the price stability.PartⅤof farmers mainly for agricultural futures market the current use of existing problems in the corresponding strategies and policy recommendations to guide the farmers to better condition , directly or indirectly to agricultural futures market.Which should be made: the liberation of the peasants thought traditional ideas; content areas by learn from the advanced use of cultivation practices and explore the maturity of the futures market; the order form using the new agricultural methods; organizations to further develop the original models in while the merits of a model to promote new agricultural cooperatives exploration and development. Which in itself can not be directly involved in the agricultural futures market, turn the use of futures market to be a guider for farmers to find a new way to increase their income stability.