The Factors Affecting Chinese Farmers' Usage of Futures Market -An Example of Wheat

Based on existing literatures, this paper theoretically explores key factors affecting farmers' usage of futures markets. These factors include the profile of farmers (PF), the knowledge of futures and spot market (KFSM), information transmitting channels (ITC), intermediary organizations (IO), requirements of the futures market itself (RFM), as well as relevant national policies (NP). The authors construct a factors model of farmers' willingness to use the futures market. In order to verify these assumptions in the Chinese futures market, this paper makes surveys in Henan province. The model and assumptions were tested by the Structural Equation Model. All theoretical assumptions were confirmed by the sample data.