Agricultural Risk Management Measures

There are two main types of agricultural risk management measures: natural risks such as crop insurance and disaster relief, and market risks such as price protection and futures markets. Chinese Academy of Agricultural Sciences Institute of Agricultural Economics Research Associate bear kept open chaired the National Natural Science Foundation of China "Agricultural Risk Management under market economy conditions", is now available for the final results. This result helps to establish and develop the theory of agricultural risk management in China, and provides a scientific basis for improving this management system. Crop insurance. The basic principle of crop insurance is to share risks and share losses. That is to say, most of the insured farmers who have not suffered losses under equal risk conditions will share the economic losses of a few farmers who have suffered losses. In general, the demand for insurance is greater for large-scale commercial farms, while the demand for insurance is smaller for small-scale farms. Because of the large agricultural production risks, high disaster losses, and low farmers' ability to pay, it has strong policies. Disaster relief. Crop insurance is an ex ante and paid risk guarantee, while disaster relief is an ex post facto and free risk guarantee. The nature of this free compensation makes it difficult to coordinate disaster relief measures with other risk management measures, especially crop insurance. In particular, in the case of voluntary insurance, disaster relief measures often cause farmers to flee and rely on their psychology, seriously affecting farmers' participation in insurance. Enthusiasm. price protection. The core price protection provision is an appropriate level of price protection, thereby not only preventing the occurrence of abnormal fluctuations in market prices and protect farmers get a reasonable income, but also good coordination between the interests of producers, consumers and the state. There are two basic conditions that must be met to implement a price system for the protection of agricultural products: First, the material conditions, that is, the government must reserve the reserves of agricultural products subject to protection prices; second, the capital guarantee, that is, the government must subsidize the cost of implementing protection prices, or Market risk funds are adjusted. Futures market. Farmers mainly use hedging transactions in the futures market, fixing their sales prices of agricultural products at a stable price in advance, thereby avoiding losses caused by adverse price fluctuations during production and final sale. The conditions for using the futures market to reduce price risk are: First, there needs to be a relatively well-developed market economic environment; Second, there must be a relatively complete legal system; Third, traders must have high business quality and basic knowledge of futures trading.
The advantage of using a futures market to reduce the agricultural price risk is that it does not distort market prices, and its discovery price function can also provide agriculture with timely information on future prices, thus helping to achieve a balanced market price, improving the allocation of resources and improving agricultural production. effectiveness. At the same time, it does not need government subsidies, so it is helpful to reduce the government's financial burden relative to the protection of prices. However, because it is a kind of management activity that can reduce the price risk for a fee, it has higher requirements for the market development level and the farmers' commercial quality, which often makes farmers avoid using futures trading when there are other gratuitous risk management projects. This is also the main reason why developing countries still have few developed agricultural commodity futures transactions.

Straw Pellet Production Line

Wood pellet complete production line is euipment for making the wood log/wood chips/sawdust/wood shaving/rice husk/stalk/grass...raw material into fuel pellets, Main process: Wood Chipper --hammer mill--biomass dryer--Biomass Pellet Machine--pellet cooler--Pellet Packing Machine.

Wood chipper: make the wood log/wood branches/wood blocks/bamboo... into smaller chips. Finished products: 20-50cm.

Hammer Mill/Crusher: crush the wood chips/wood shaving/small blocks/grass/stalk...to 6-8mm powder. Finished products: 6-8mm.

Rotary Dryer: dry raw material into suitable moisture to produce high-level pellets. Finished moisture: 10-15%
Wood Pellet Machine: press crushed and dry sawdust/rice husk/straw/grass... into pellets. Finished pellets: 6/8/10mm.(Asian Market standard: 8mm; European Market standard: 6mm)

Cooling Machine: cool high-temperature pellets before packing.
Reason: the finished pellets are very hot and realease moisture as they leave the pellet machine. This section can ensure to generate smooth pellets.

Packing Machine: pack pellets into 20-50kg/bag or 1 ton bag. Advantage: easily to be transported to final users' site.

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Shandong Kingoro Machinery Co., Ltd , https://www.kingoromachine.com