Author(s)

Jiayi Wang ¹, Yile Wang ²

Affiliation(s)

¹ Digital College, Beijing Technology and Business University, Beijing, China
² School of Economics, Beijing Technology and Business University, Beijing, China

Corresponding Author

Yile Wang

ABSTRACT

To address the challenge of balancing coverage levels, fiscal subsidies, and risk control in agricultural "insurance plus futures" policies, this paper proposes a multi-objective decision-making framework that accounts for farmer utility and fiscal constraints. First, a Constant Relative Risk Aversion (CRRA) utility function is employed to characterize farmers' income preferences under price uncertainty, integrating fiscal subsidy costs and wealth fluctuation risks into a unified evaluation system. Subsequently, a tri-objective optimization model is established—aiming to maximize farmer utility, minimize fiscal costs, and minimize risk exposure—with coverage levels, subsidy ratios, and premium rates serving as decision variables; the Non-dominated Sorting Genetic Algorithm II (NSGA-II) is then used to solve for the Pareto-optimal policy set. Using a corn "insurance plus futures" case study, policy analysis is conducted based on parameters derived from existing research and actual projects, alongside comparisons with other optimization algorithms. The results demonstrate that the proposed method yields a well-distributed set of policy solutions and clearly illustrates the trade-offs between farmer utility, fiscal expenditure, and risk control. Further sensitivity analysis reveals that fiscal budgets, market volatility, and farmers' risk preferences significantly influence optimal coverage levels and subsidy allocations. This paper offers a practical analytical approach for transitioning agricultural "insurance plus futures" policy formulation from empirical settings to multi-objective, quantitative decision-making.

KEYWORDS

Agricultural insurance-futures; Multi-objective optimization; Farmer utility; Risk management

CITE THIS PAPER

Jiayi Wang, Yile Wang. A Multi-objective Decision Framework for Agricultural Insurance-Futures Policy Optimization Considering Farmer Utility and Fiscal Constraints. Agricultural & Forestry Economics and Management (2026). Vol. 9, No. 1, 85-99. DOI: http://dx.doi.org/10.23977/agrfem.2026.090111.

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