| Our country is a large agricultural country, and the agricultural species and output are among the best in the world. However, many farmers always face the problems of lagging sales. The expansion and standardization of the market has been the key to the development of China’s agriculture. As the main form of agricultural industrialization and scale management, contract farming can effectively solve the problem of lagging sales. At present, there have been a large number of agricultural products bases, and some of them have adopt contract farming, but the mass production is limited, which is difficult to satisfy market demand, and the market is also lack standard. Thus, contract farming presents a low performance since it entered the agriculture in our country.In this paper, the dynamics model of supply chain order financing system is established first. Then system dynamics simulation is applied to analyze the different decisions when farmers facing product market price movements, based on the study of supply chain finance on solving farmers’financial difficulty. To obtain profit maximization of farmers, the accumulated earnings change is analyzed when farmers adopt continuous compliance decisions and partial compliance decisions. Finally, optimum compliance decisions to optimize profits are presented.It is shown from the simulation results that order financing can improve the farmers’asset size significantly, and continuous compliance decisions can optimize the profits when farmers reasonable treating market price change. Although the profit of partial compliance decisions can be larger than that of continuous compliance decisions when the market price continued increase, the adopt of continuous compliance decision can have positive effects on optimizing the scale and benefit, for the uncertainty of market price, of which a continuous rising case is seldom. |
