Analyze "Insurance Plus Futures" Support The Development Of Cotton Industry In The Keju By A Futures Company

Agriculture has always been the focus of governments and the basis for the poverty-stricken areas.It has had a tremendous impact on the development of China's overall economy.The Chinese government has invested largely in this area.However,because the limitations of policies,the complicated and fluctuate market conditions,the ratio of government' investment has been declining,and turns up negative effects.With the continuous deepening of the reform of China's agricultural product price formation mechanism,the increase of the supply and demand prices of agricultural products' s elasticity cause the risk of price fluctuations continues to increase.As one of the commodities,cotton' function is more serious,which can not only improve the level of employment and consumption in China,but also promote the development of the financial industry,expand the range of domestic investment varieties,and weaken the unfavorable situation of the rapid outflow of domestic funds..However,due to the uncertainties in the cotton plant process,the fluctuation of cotton prices is intricate,which makes cotton growers have to be in the risk of large market price fluctuations.Although the implementation of cotton insurance has reduced the planting risks of farmers to a certain extent,the risks have all been passed on to insurance companies.The huge risks and the large compensation have damaged the confidence of insurance companies in launching cotton insurance and developing of other insurance products.The impetus to increase premiums will allow farmers to succumb to agricultural insurance,and the irreconcilability of interest petition between the insurance company and the farmer has become a barrier on agricultural development.The "insurance + futures",which relies on the combination of insurance and futures market,has changed this unfavorable situation in time,effectively dispersing the risks of market of cotton farmers.safeguarding the interests of all parties,and opening up the "last mile of futures supporting for agriculture."This paper selects the "insurance + futures" case that A futures company implements in Kezhou as the starting point of analysis: First,because Xinjiang is the largest cotton producing area in China,mainly concentrated in southern Xinjiang;second,because traditional cotton insurance has certain drawbacks;Because Kezhou is located in southern Xinjiang,its economic development is behind,and cotton is the main crop of Kezhou,as well as the main income for local growers.Therefore,the stability of cotton prices is not only related to the income of cotton farmers,but also affects the poverty alleviation work in Kezhou..The first introduction of the “Insurance + Futures” project in Kezhou is want to avoid price fluctuations in the cotton market and ultimately promote the development of the cotton industry.The successful experience of this case has reference significance for all the poverty-stricken areas in Kezhou and even Xinjiang,and provides new suggestion for the promotion of Xinjiang “price + futures” business model and the development of cotton industry,explores the new application factors of “insurance + futures”.This business is an effective way to stabilize the income of cotton farmers and promote the development of China's agriculture and futures industries.