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Abstract

Factors leading to rise of prices of agricultural products mainly include tension of supply-demand relationship, promotion of production cost and circulation cost, and speculation of Refugee Capital (Hot Money). Factors leading to low price and difficult sales of agricultural products mainly include asymmetry of supply-demand information, lack of risk management tools for prices of agricultural products and decentralized and small-scaled operation of farmers. On the basis of these factors, this paper presents following countermeasures and suggestions for stabilizing prices of agricultural products: firstly, building long-effect mechanism for production and sales of agricultural products; secondly, expand the production and increase supply of agricultural products; thirdly, control the rising range of production cost for agricultural products; fourthly, enhance organization level of farmers; fifthly, promote innovation and development of risk management tools for prices of agricultural products.

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