Price Risk And Management Of Agricultural Products

As the basic industry of the national economy, the development of agriculture plays an important supporting role in the national economy. Agricultural produce is not only a necessity in people’s lives, but also raw materials of industrial production. So, stable prices of agricultural products is not only related to our vital interests, but also linked the economic environment’s healthy and orderly development. Therefore, the study of the agricultural price volatility and the risks on the future has an important significance for protecting farmers’ income, stabling prices’ levels and making sure national economy’s healthy and orderly development.On the basis of the formation and the risk characteristicsof the agriculture products’ price, this article describes the characteristics of the prices volatility among the last decade in our country, and according to influence of internal and externalhe, analyzes the factors affecting agricultural price volatility from the theory. According to the annual data among1990-2014, this article chooses the cost of production. money supply and agriculture to the affected area as the object of study, the result shows: three are long-term equilibrium relationship between the prices of agricultural products and the three factors. Among them,agricultural production cost has the most obvious impact on the formation of prices’ s risk,the money supply followed. And based on the results of research, combined with the specific situation of China at this stage, there may have some analysis for the agricultural price risk in the future.Finally, this article made a series of suggestions from the proposed national policy,agricultural insurance and market in order to stabilize prices. From the policy, formulating reasonable price protection policy and increasing the scope and intensity of agricultural subsidies;From agriculture insurance, we should develop new insurance, for example,the price index insurance and catastrophe insurance; From the market, to make some suggestions for imperfect market information system and circulation systemthe, to promote the large-scale mechanized agriculture.