The scale-up trend of pig farming is evident in China.Feed grain futures provide a finan-cial tool for large-scale hog farming entities to reduce feed price risks and stabilize hog production.Based on data from 2013 to 2020 from the operating reports of listed hog companies,this paper uses a two-way fixed effects model to study the implicit and explicit production stabilization effects of feed grain futures trading on large-scale hog farmers and discusses the mechanism of futures trading in promoting produc-tion stabilization.The results of the study show that feedstuffs futures hedging transactions help large-scale hog farmers expand their production,and the expansion effect increases with the increase of hog rev-enue share and futures transactions contribute to stabilizing pig output for large-scale pig farming entities.The results of mechanism analysis show that the mechanism of futures trading to stabilize production is to reduce the fluctuation of operating cash flow and stabilize the income.Based on the above findings,policy suggestions are proposed in terms of risk mitigation through the futures market,promoting finan-cial knowledge dissemination,and encouraging financial instrument innovation.
维普
万方数据