Research On The Problem Of Corn Revenue Insurance

Corn has three attributes,food,feed,economic crops and corn industry also across the first,second and third industry,thus corn production,supply,demand,and price changes have a great influence on people’s life,economic stability and national food security.Corn has also made great contributions to the increase in grain production year after year and our food security.But influenced by the years of corn reserve policy,domestic and international market environment factors and production cost,production inventory,domestic and foreign prices changing inversely,the declining growing income,the increasing of market risk and other problems appears in the corn industry.Since the implementation of financial subsidies for agricultural insurance in 2007,China’s corn planting insurance has been developing rapidly,and the insurance coverage is also increasing.However,with the change of agricultural production mode and the development of modern agriculture,the market risk is becoming the prominent risk of agricultural production.The low guarantee level,wide coverage,only protecting the natural risk have made the corn planting insurance unable to meet the needs of farmers comprehensive risk management.Therefore,it is of great significance to explore the research of corn revenue insurance in view of the current situation of corn production,the reform of price formation mechanism and the actual needs of corn growers.2016 central document also proposed to improve the agricultural insurance system,to explore the target price insurance,as well as revenue insurance and weather index insurance.2017 central document clearly stated to explore the establishment of agricultural revenue insurance system.From the international experience,revenue insurance is also the leading and popular type of crop insurance in the United States and other developed countries,which plays a unique role in the price risk management for agricultural products.This year,China’s central government departments and many insurance companies pay more attention to the research and exploration of revenue insurance.Based on the analysis of the present situation and existing problems of corn production and corn insurance in China,this paper states the importance and favorable conditions for the development of corn revenue insurance.Based on the US crop revenue insurance experience,this article take the 1978-2015 corn yield and price data for example and calculate the rate by Copula method.Finally,this paper puts forward some suggestions.Corn revenue insurance can not only provide the market risk management tool for farmers,rich agricultural insurance products,but also play an important role in price formation mechanism reform,corn structure adjustment and maintenance farmers’ income and enthusiasm in corn planting.This paper’s correlation analysis,product design,pricing ideas and suggestions can enrich the theory of corn revenue insurance in China to a certain extent,and it provides a reference for the practice of corn revenue insurance exploration.