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According to the Ministry of Commerce predicted, the prices of agricultural products in China in 2010 are rising trend, some agricultural products is present volatile situation. The agricultural price disrupts market, and also brings us to confirm the fears of fair value. From the definition of fair value, It is a fair deal, knowledgeable parties to the transaction or exchange their assets and pay the debt amount. Along this logic, as long as the buyers and sellers voluntary, familiar with each other, and not related parties, they reached the exchange price as fair value. Such as the price of garlic, even ridiculously expensive, as long as buyers and sellers on a voluntary transaction in an active market prices to be determined to be fair value. But, if the market can not guarantee the fairness, how the fair value be recognized under the market?In 2010,crazy agricultural products reminded us again how important this problem is. In this paper, based on the literature, related theory, and the prices of agricultural products, the status of cotton which is volute in 2010, is analyzed. Cotton prices reached mainly due to supply and demand, supporting prices of textiles, inflation, financial speculation and other implications. In this condition,we propose the fair value of the paradox under the significant volatility in agricultural products .If the asset market prices reflect the fair value, the volatility of cotton prices is its fair value; If the fair value reflects the intrinsic value of assets, Obviously ,the not "fair " price of cotton is not the fair value, we should use other technical methods to discussion the intrinsic value of assets. In this paper, we think that the fair value of assets should reflect the current market price rather than its intrinsic value. Therefore, even if cotton prices in 2010 do not look so "fair ", but as long as voluntary if the buyers and sellers to trade in an active market, the price to be determined to be fair value. This paper is to described the cause and explain why the fair value of the paradox appeared,and to improve the fair value of the theory and construct the framework of the fair value of the target. Finally, in this paper, we think that to make use of fair value not only depends on the efforts of the accounting profession, but also depends on the external environment to support the market economy environment. The quality of market development has important implications for the implementation of fair value. Fair value is not equal to the fair market value, but it is the most objective and most convenient source. Therefore, as to the fair value measurement, the dynamic market and improvement of the theory is important too. This paper seen from the government, market, farmers and other aspects and puts forward measures to increase China’s agricultural market pricing is reasonable, to ensure the fairness of prices of agricultural products.
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