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Similarities and differences between futures agriculture and order agriculture
Similarities and differences between futures agriculture and order agriculture;

(1) Similarities:

1. All are forward delivery.

2. Partial payment of the contract amount (deposit in order agriculture; Futures trading margin)

(2) Difference:

1. Most futures contracts profit from the price difference, so the actual delivery ratio is very low. And contract farming will basically fulfill the contract.

2. The liquidity of futures contracts is very good; However, the transaction subject of contract farming is basically fixed.

The so-called "futures agriculture" refers to the contracts and agreements for ordering agricultural products, also known as contract agriculture or contract agriculture, which is market-oriented, contractual, predictive and risky. The quantity, quality and minimum protection price of agricultural products specified in the order make both parties enjoy corresponding rights, obligations and binding force, and cannot unilaterally break the contract. Because the order was signed before the planting and feeding of agricultural products, it is also called "futures agriculture" (agriculture

Contract agriculture, also known as contract agriculture and contract agriculture, is a new agricultural production and management model that has emerged in recent years. Farmers organize and arrange agricultural production according to the orders signed by themselves or their rural organizations and buyers of agricultural products. Order agriculture has well adapted to the market demand and avoided blind production.