Optimal Financing Decision in a Contract Food Supply Chain with Capital Constraint

To solve the financing problem of food producers, we consider a two-echelon contract supply chain composed family farm with capital constraints and processing enterprise. With no as benchmark model, analyze optimal decisions enterprise in case bank participation only “government, bank, insurance” coparticipation. Then, discuss how risk yield uncertainty influences profits under different situation. Meanwhile, reason why government subsidizes agriculture is explored, policy minimum purchase price initiated when market too low. Finally, numerical examples sensitivity analysis are presented. The results show that coparticipation improves welfare members more obviously than only; rice low, initiated, which increases revenue growing enthusiasm farm; will decrease financing, be reduced for