Operational Analysis Of Agricultural Product "Insurance+Futures" Model

In recent years,the great price fluctuation of agricultural products has prompted the price risk management of agricultural products,and it has became the important focus for farmers' income.In 2016,2017,2018,and2019,for four consecutive years.“ insurance +futures” pilots have been written into the central document No.1 as an important means for the central government to promote rural financial reform and strengthen rural financial security.Up to now,there are more than 30 domestic futures companies cooperating with many insurance companies.Relying on Dalian Commodity Exchange,Zhengzhou Commodity Exchange and Shanghai Futures Exchange,carrying out pilot work around soybean,corn,apple,egg,sugar,cotton,natural rubber and other agricultural products,This has effectively reduced the farmers' losses due to price fluctuations of agricultural products,better protects farmers' planting rights and interests,and also promotes the healthy development of agricultural mechanisms and speeds up the process of modern agriculture.But China's " insurance+futures" is still in the exploratory stage,this study has certain practical value.This paper mainly explores the operation mode of " insurance +futures" through case analysis.Taking the operation mode of " insurance +futures" of corn in Handan DaMing county,Hebei Province,carried out by Shanghai International Investment Company,a subsidiary of FangZheng Medium Term Futures Company,and Hebei Branch of Pacific Property Insurance Co.,Ltd.as examples,this paper introduces the experience of realizing agricultural risk transfer through this innovative mode.First of all,on the basis of discussing the theory and necessity of the " insurance +futures" model,the general situation of the case and the participants has been knew,and the operation scheme of this pilot project is emphasized.Secondly,combined with the role of each participant in the pilot project,to analyze the design process,hedging strategy,capital settlement and risk control,and find the innovation and shortcomings.Finally,it points out the existing problems of the " insurance +futures" model,and based on this,it puts forward some suggestions such as perfecting the subsidy mechanism,strengthening the inter-subject connection,enriching the options varieties,and perfecting the functions of the futures market so as to better promote this model.