By Meng Chun, Chen Changsheng, the Department of Macroeconomic Research, the DRC

Research Report No 146, 2013

Abstract:

The scattered small rural household business model that has existed in China for hundreds of years is difficult to adapt to new development.

Compared with traditional decentralized operations, new agricultural operating organizations will help improve economies of scale and labor productivity, enhance the ability to resist natural risks and market risks, promote rural development, and increase agricultural efficiency and farmers’ income.

In recent years, various places have made efforts to explore ways to innovate agricultural organization. Tianjin’s Jinghai county has specifically seen positive results. Under the premise of keeping property rights and contracting rights unchanged, the county encourages farmers to take the initiative to innovate agricultural operations so as to drive new reform in agricultural production relations.