Survey Probability of Participation of Farmers in the Futures and Options Markets (Case Study of Cotton City Gonbadkavos)

Farmers with a variety of natural and unnatural hazards faced in agricultural activities, and thus their income from agricultural production is associated with instability. A wide range of risks in the income from agricultural production have been influenced. One of the major risks that are faced by farmers are involved, the risk of volatility of price agricultural products. Numerous tools for marketing and risk management for agricultural producers in the face of significant risks price available. Futures and options markets may be the most important tool available (to reduce price volatility) is the producer of agricultural products. The purpose of this study was to investigate the possibility of participation of farmers in cotton futures and options markets Kavos Gonbad city, as well as factors affecting farmer's participation in the futures and options markets. The dependent variable for this purpose, groups of farmers involved in cotton futures and options markets have The four categories are: first class participate in both the market, participation in the futures market on the second floor, third floor Participation in the options market and the fourth floor of participation in both the futures and options markets. Data for this study were collected through questionnaires and interviews with cotton farmers. To achieve the goal of the Moltinominal logit model is used. Content validity of the preliminary study is the first to measure the opinions of experts and professors to assess the validity of confirmatory factor analysis were used. For calculating reliability, the questionnaire was pre-tested with 30 and 0/79 reliability coefficient Cronbach's alpha for the questionnaire was to show that the questions were highly reliable.The results of the tests show that the likelihood of a parent The dependent variable, there is no possibility of combining groups and Hausman test results indicate that the four The dependent variable are independent of each other. According to information obtained 35 percent of farmers are reluctant to participate in the futures and options markets. Farmer's willingness to participate in the futures market and the options market is 21.5 percent and 19 percent. Implies a willingness to participate in the options market to the futures market is higher among farmers. Farmers are willing to participate in both the market is 24.5 percent. With an increase of one unit of the explanatory variables of education, the cultivation of cotton and index of relative risk aversion is likely to participate in the market for futures and options Assuming a constant basis compared to other factors, respectively, 2/6976, 2/446 and 3/8501 unit increases. With the increasing interest in the use of new technology, a single indicator of the relative likelihood of participation in the market for futures and options Assuming a constant basis compared to other factors, in order of increasing 2/9289. With the increase in the relative risk for a single cotton market risk perception index futures and options market participation Assuming a constant basis compared to other factors, in order of increasing 2/4794. On the other hand, the increased relative risk of changing agricultural work experience for participation in the futures and options markets Assuming a constant basis compared to other factors decreasing 0/6253. The obtained results of Estimation of model the variables of education, farm ownership, the area under cotton cultivation, off-farm income, farm work experience, tend to use the new technology index, of risk perception Cotton market index and risk aversion index Are statistically significant. The farm ownership variables, off-farm income and agricultural work experience negative effects of other variables have a positive effect on the probability of participation in mentioned markets. Given the positive relationship between level of education and participation of farmers in the futures and options markets can be suggested that the training seminars about how these markets as a means of reducing the risk of price and performance informing them of the role of research, education and extension services to farmers be held agricultural province. Given the positive relationship between risk aversion and risk perceptions tend to use the new technology on the market for cotton farmers are likely to participate in these markets, it is proposed to develop a more farmers markets are considered behavioral characteristics.