The Study On Using The Futures Markets To Avoid The Price Risk Hedging Of Farm Products

China is the country with frequent agricultural disasters. Farmers have limited choices to disperse such natural risks. Because of the lack of the risk dispersion mechanism, farmers are the farm price passive receiver, more than that the agricultural natural hazards and the market risk mainly undertakes by the farmers. At present a tool is urgently needed to avoid agriculture risk. Recent years, the academic circle and authorities paid more attention to how to avoid the price risk. From 2004 to 2009, the Chinese government had continuously issued 6 documents about"the issues of agriculture, farmer and rural area", they all mentioned that to solve the agricultural problem, the using of the function of futures market is necessary.This assignment creates an economic mathematical model to carry on analysis and research, points out that the agricultural products price risk is the main risk that the operator faces in China. Discussion questions and proposes the countermeasures through the analysis of futures market function and the cases of domestic and foreign futures market avoid price risk.