A　protection　price　contract　agrees　that　the　company　must　purchase　products　from　the　farmer　at　the　higher　price　from　the　market　price　and　the　contract　price.　The　farmer＇s　profit　is　protected　in　the　mechanism　of　protection　price　contract.　However,　the　farmer　should　pay　a　premium　to　obtain　the　right　at　higher　selling　price.　To　support　the　development　of　agriculture,　we　assume　that　governmental　premium　subsidy　is　provided　for　the　farmer.　Therefore,　three　participants　including　the　farmer,　the　company　and　the　government　are　involved.　This　paper　firstly　set　up　the　coordination　mechanism　between　the　farmer　and　the　company　under　the　governmental　regulation.　Then,　the　explicit　expressions　of　the　optimal　production　size　decided　by　the　farmer　with　the　objective　to　minimize　the　risk　of　CVaR,　the　contract　price　decided　by　the　company　to　maximize　its　expected　profit.　Moreover,　the　effects　of　model　parameters　to　the　interests　of　the　farmer,　the　company　and　the　social　welfare　were　presented.　Finally,　a　numerical　example　was　to　be　analyzed　and　some　suggestions　were　presented.　The　results　show　that　the　market　price　risk　is　adverse　especially　for　the　firm　that　with　larger　risk　aversion.　Subsidy　provided　by　the　government　is　advantageous　to　improve　the　interests　of　the　three　participants.　©　2018,　Asian　Association　for　Agricultural　Engineering.　All　rights　reserved.