A Case Study On Apple’s "Insurance+Futures" Financial Support For Agriculture In M City

As a major agricultural country,rural development and farmers’ happiness have always been one of the goals set by China for a strong country.For many years,the Chinese government has been protecting the interests of the vast majority of farmers in areas such as planting,production,and sales.However,after the government gradually restricted and abolished the policy of purchasing various types of grain on the market,market competition gradually replaced government regulation policies and became the main factor determining agricultural product prices.In recent years,the increase of China’s crop output and the impact of foreign agricultural imports have also affected the fluctuation of agricultural product prices,which is not conducive to the stability of China’s agricultural product market prices.At present,the market price risk has gradually replaced the natural risk,becoming the biggest stumbling block hindering the stable increase of farmers’ income.Therefore,the Chinese government proposed the policy of developing the "insurance+futures" pilot project in 2016.The "Insurance+Futures" project,as an innovative model of financial support for agriculture,not only supplements the lack of good market risk management tools in the existing insurance market,but also enables innovation in agricultural product subsidy methods.However,the "insurance+futures" project in China is still in its initial development stage,and the actual protection that the project can bring to farmers is relatively limited.Therefore,how to develop the "insurance+futures" project and make it play a greater role in risk management and income subsidies is the direction of the future development of the "insurance+futures" project.Therefore,this article chooses the "Insurance+Futures" project of Apple in M city as the research case,and uses literature research,case study,and questionnaire survey methods as the research methods.By analyzing the risk management,benefit subsidies,and other functions of the project,it proves the effectiveness of the "Insurance+Futures" project of Apple in M city in operation.In addition,combined with relevant research,summarize the advantages and future development directions of the pilot "insurance+futures" project in M city.The analysis results of this article indicate that the "insurance+futures" project is currently the most reasonable price risk transfer tool in China’s insurance market.It can not only help farmers transfer price risks,but also leverage the characteristics of policy based agricultural insurance to provide farmers with certain price subsidies.At the same time,the "insurance+futures" project can also achieve risk closed-loop,avoiding the risk of price decline and causing losses to all participating parties of the project.From the analysis of pilot projects,in terms of contract design,the combination of "touch options+enhanced Asian put option" can lock the lower limit of the settlement price,and increase the upper limit of compensation from the perspective of income,thus providing more income subsidies for farmers in the project and improving the efficiency of the project.In addition,in the future development direction of the project,the most core development concept is to design income insurance products,which can ensure both price and output,making farmers’ income more stable.