A Comparative Study On The Models Of Farmers’ Indirect Participation In Agricultural Derivatives Market

China is a big country of producing and consuming agricultural products,which produces nearly 2 billion tons of agricultural products every year.The production of agricultural products is facing multiple risks,including natural and policy risks,as well as huge market risks.Stabilizing the price of agricultural products and increasing farmers’ income are urgent problems to be solved in China currently.The effective use of this risk aversion tool by farmers,namely the futures market,plays a huge role in stabilizing farmers’ income and ensuring the healthy and coordinated development of agriculture.Farmers’ participation in the futures market is of great significance to the function of the futures market.Currently in China given farmers’ lack of money,knowledge of the futures and their own small scale of production,farmers’ indirect participation in the futures options market has become an effective way to avoid risks.However there are some problems in the three main modes of this kind of participation which cannot be applied to all farmers.Thus this paper analyzes the factors of farmers choosing the indirect way of participating the futures options market and offers new choices and advice,hoping it could provide some help to the development of Chinese agrarian finance.