Problems And Countermeasures Of "Price Insurance + OTC Option" Business Model Of Hanyuan Pepper

Agricultural products are related to the national economy and people’s livelihood,so the price fluctuation of agricultural products will increase the risk of agriculture,agricultural income is difficult to be guaranteed,and thus affect the enthusiasm of farmers in production.In order to solve the problem of price instability,the government induced innovation and first adopted the way of "price insurance + fiscal subsidy" to manage price risks.This way has limited ability to disperse and manage risks,and has a heavy financial burden.In recent years,our country’s futures and options market has a certain development,the agricultural products price formation and hedging plays an important role,but as a result of futures and options market has a certain access conditions and the barriers to entry,the general farmers and small new operators to attend,Chinese financial innovation of the agricultural products’ price insurance + otc options "mode of mixed financial business,Farmers and small-scale new agricultural subjects can purchase insurance and distribute part of the risk to the option market,thus solving the problem that the price risk of agricultural products is too high and farmers are difficult to participate in the futures and option market.However,the business model of "price insurance + otc option" is still in the pilot process and still faces the problems of low participation enthusiasm of farmers and high transaction costs.Through the introduction and design of the "price insurance + OTC options" business model,this paper will clarify relevant theoretical issues and reveal the operation mode of the "price insurance + OTC options" mixed financial business model.Taking The Chinese prickly ash as an example,statistical analysis and comprehensive analysis of the survey data were carried out through field investigation and department interview.The results show that the "price insurance + over-the-counter option" business model of Hanyuan Pepper has advantages,which can help farmers cope with price risks and promote farmers’ income increase.Increase the planting area,promote the development of Hanyuan Pepper industry;Expand the field of benefit agriculture,expand business volume.At the same time,this business model also has certain risks and problems,including DELTA hedging risk,credit default risk,basis risk;Insurance scale,market price is not uniform,otc option price design is not reasonable;Analysis of its risks and problems of the existence of the main reasons are insufficient government financial subsidies,futures market is not perfect,the main body of the lack of convergence,market supervision is not in place.By referring to the relatively mature model of corn "price insurance + otc option" experience,such as the government’s active participation,more targeted policy design,futures companies and insurance companies cooperate with each other.Finally,this paper puts forward countermeasures and suggestions for further developing and perfecting the "price insurance + otc option" business model: optimizing the insurance product structure;To unify the market price of Sichuan,Shanxi and Chongqing Pepper production areas;Improve the long-term government subsidy mechanism;Preparation of pepper index,promote pepper futures listed.