"Insurance + Futures" Model And Agricultural Products Price Risk Prevention Based On Farmers' Perspective

China is a big country in agriculture,but the prices of agricultural products fluctuate greatly in the process of traditional agriculture to modern agriculture,causing farmers to face huge price risk.This will seriously strike the enthusiasm of farmers to plant,and affect the stability of China's agricultural production.Only by taking positive and effective measures that can prevent the price risk of agricultural products,can we ensure the stable operation of agricultural production in China,bringing with the comprehensive economic development.In the terms of main measures that used to prevent the price risk of agricultural products now,it really plays important roles to diversify risk and protect farmers' income for agricultural product price insurance and agricultural product futures.However,in practical applications,the agricultural risk is systemic and it?s difficult to determine the target prices.So there are many difficulties for us to popularize and apply the agricultural product price insurance on a large scale.There are also many farmers out because of the high barriers to entry in the futures market and the drawbacks of China ?s futures market.In 2016,the Central No.1 document formally proposed the "Insurance + Futures" model,which involved agricultural product price insurance and agricultural product futures,and carried out of the whole country.The "Insurance + Futures" model refers to the effective docking of the agricultural product price insurance and the agricultural product futures market.On the one hand,it enables more farmers to use agricultural product price insurance to participate in the futures market indirectly,and future market provides farmers with better management.On the other hand,it provides a risk-distribution site for the insurance company reinsurance system,and also encourages insurance companies to make more policy choices for farmers.Firstly,this article elaborates the related theories of the "Insurance + Futures" model and introduces the theory of the formation of agricultural product prices and the concepts of risk prevention models such as "Insurance + Futures" briefly.Secondly,the EGARCH model is used to measure the price risk.It discusses the major agricultural pro ducts in China,including corn,soybean,wheat and early rice.We analyze the price fluctuations of these respectively agricultural products.The results show that: the prices of agricultural products in China have fluctuated sharply.The impact of positive news and negative news on agricultural products prices is asymmetric.Thirdly,this article finds out the advantages and disadvantages through comparing current and typical models which can prevent agricultural product price risk.We propose to use the "Insurance + Futures" model to prevent agricultural product price risk.And it?s elaborated the function and comparative advantages of the "Insurance + Futures" model.Fourthly,this article uses Logit binary selection model to analyze the main factors which affect the use of "Insurance + Futures" model by Chinese farmers.Finally,in order to promote the "Insurance + Futures" model on a large scale of the whole country,we put forward some targeted policy from the perspective of farmers,futures markets,and policy support."Insurance + futures" model is an emerging measure to prevent agricultural product price risk.It can prevent agricultural product price risk effectively.At present,the "Insurance + Futures" " model actively promoted by China is in its infancy.This article reveals the main factors that influence farmers' use "Insurance + Futures" model through empirical analysis,and provides a theoretical basis for further publicizing and promoting this model in whole country.