2008Journal of Shijiazhuang of University of EconomicsRequires access

Hedging Through Futures Market for Increasing Farmers′ Income

Baolin Lv

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Abstract

At present,to increase Chinese farmers′ income is an urgent issue.As an advanced form of market economy,the futures market is a good mean for risk avoiding of agricultural produce,and it is necessary for a certain development stage of market economy in China.In this paper,the author elaborates the hedging function of futures market and the way to apply it to agricultural produce.Some suggestions on how to promote and popularize the futures market are also put forward by the author.

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At present,to increase Chinese farmers′ income is an urgent issue.As an advanced form of market economy,the futures market is a good mean for risk avoiding of agricultural produce,and it is necessary for a certain development stage of market economy in China.In this paper,the author elaborates the hedging function of futures market and the way to apply it to agricultural produce.Some suggestions on how to promote and popularize the futures market are also put forward by the author.

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Available abstract

At present,to increase Chinese farmers′ income is an urgent issue.As an advanced form of market economy,the futures market is a good mean for risk avoiding of agricultural produce,and it is necessary for a certain development stage of market economy in China.In this paper,the author elaborates the hedging function of futures market and the way to apply it to agricultural produce.Some suggestions on how to promote and popularize the futures market are also put forward by the author.

Key concepts: Futures contract, Futures market, Forward market, China, Economics, Order (exchange), Agriculture, Function (biology)

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