A Research On The Contract And Organization Of "Company+Farmer" Mode Of Large-scale Management

Through overall situation analysis of agricultural production efficiency and technological progress in China,the paper puts forward that the micro mechanism of promoting the development of modern agriculture is form large-scale management organization by the integration of framer 'production activity and company'management activity,adopting advanced technology and using it effectively.Based of investigating the characteristic of the production and management in small-large farmer,this paper expounds the formation reason of "Company+Farmer"organization and the advantages of management scale expansion.And then,analyzes the interrelation and property right structure of this kind organization.In the end,the paper gives the specific scope of application of "Company+Farmer" organization and concludes the main principles and logic of the contractual arrangement in super-market contract.There are some problems about centralized management in numerous small farmers at present,which restrict the process of agricultural modernization.Through large-scale management improving technology level of agricultural production has become the most important task during agricultural development.Many researchers have concerned about the large-scale mode of company leading framer,ie "Company+Farmer".Related research results of "Company+Farmer" mode are mainly based on case analysis,focusing on the discussion of the organization form,contract type and so on.The general research on the formation,mechanism and applicability of such large-scale management organization is not much.Now,China's agricultural development is facing the dual constraints of land and labor resources.Improving land output rate and labor productivity at the same time is the inherent requirement of modern agriculture characterized by technological progress.In the last decade,the efficiency of agricultural production is generally improved,but the rate of land output has no significant increase in labor productivity.This is mainly because the improvement of labor productivity is the common effect of the ratio of the number of labor and land decreasing and technology,but rate of land output is only determined by the technological progress.The result of Malmquist index estimation based on the 1997-2011 data of the agricultural panel data show that the pure technical progress has promoted some improvement of the land output rate,however the effect is weakened by the low technical efficiency.Therefore,the idea of promoting the development of agriculture is the capital investment tending to those technologies which relate to land output,and enhancing the practical effect of technology.Small-scale farmer production is in the transition stage from traditional agriculture to modern agriculture.Under some impact of the process of the marketing,family production has the characteristics of part-time farming.And is profit oriented.Farmers' optimal production mode choice is neither traditional labor intensive nor capital intensive cultivation.Farmer family can achieve maximum output with a certain technical level,so it is a most productive organization.That is the reason of taking small-scale farmer as the basic unit of the large-scale management organization.A small-scale farmer is difficult to adopt advanced technology by production and management independently,when lacking management ability and financial strength.So,large-scale management is necessary.The result of a DEA analysis based on the farmers which plant greenhouse vegetables in Fengyang County of Anhui Province is that the small-scale farmers have high technical efficiency.However,compared with the large planting,small-scale farmer has some disadvantage in the areas including product diversification,sales approach and the financial investment.Small farmers and the company signing a contract of purchase and sale is the primary form of large-scale management.In practice,the main problem of the order agriculture is the low compliance rate of contract,so the cooperation relative between the two sides is not stable.Through the typical case analysis,it can be concluded that the fixed price is the core factor affecting the compliance rate.This paper constructs some non-cooperative game model and discusses these existence conditions of the cooperative solutions.The analysis conclusion of game model is that cash mortgage is the basic means to guarantee contract execution,but the requirement of the full mortgage limits its effect.Relationship specificity investment can also inhibit the opportunistic behavior,which is a kind of generalized mortgage without the limitation of cash mortgage.So it is an effective means of implementing by self Further,both sides of the specificity investment can prevent the emergence of ho ld-up phenomenon at the same time.Under the circumstances,"Company+Farmer" is formed from the simple order relationship to quasi integration between the company and the farmer.The organization of "Company+Farmer" is not only the result of the rational choice of microcosmic body,but also has the advantages of scale expansion.The appropriate measurement standard of scale in modern agriculture is capital size.Thus,the management scale expansion depends on capital accumulation and additional investment.As the representative of the integrated organization the larger-scale farmer mainly uses the capital agglomeration mode to accumulate,but "Company+Farmer”is depended on capital concentration to realize a larger management scale.In concentration process,the production scale and management scale can be distinguished in this kind of quasi integrated organization,which has the relative advantages in terms of scale expansion,capital accumulation and the creation of the division of labor.As a quasi integrated organization,property structure of "Company+Farmer" is special,which mainly reflected in the aspect of small-scale farmer giving up land management rights partly.Under this kind of property right structure,company's management ability and the land management right of farmer are exchanged,and the organization relationship between the two sides can be called "master-comply".Master-comply relationship helps to save the cost of commodity trading and transaction of management ability.Thus,"Company+Farmer" has organization advantages beyond both the market and the hierarchy.The ownership structure is the result of the optimal allocation of property right.This paper extends the Hart Grossman G-H-M model,discussing the intermediate state between market and the integration.The analysis result is the property right structure of quasi integrated is expected to achieve the maximization of the cooperation income.Contractual arrangement is a concrete means of achieving win-win for both companies and farmer.In practice,super-market contract is applied in the organization of "Company+Farmer".Compared with the classical contract,the new classical contract,super-market contract is more suitable for the complex transaction in agricultural field.Generally speaking,whether the transaction is special of relative is the criterion for judging validity of super-market contract and "Company+Farmer"mode.In agricultural production and management,the transaction belonged to relationship specificity is non-standardized,when the transaction involving special variety,special assets or specialized skills.Therefore,domain of validity of super-market contract in agriculture includes the majority of the aquaculture industry,fruit and vegetable industry,as well as special food crops.Super-market contract can coordinate the conflicts in the uncertain environment,maintain continuous trade and cooperative relations depended on its flexible terms.The main items of the super-market contract include quantity adjustment,quality intervention and the principle of determining price of the transaction.The common pricing mechanism of super-market contract can be summarized as minimum-guarantee,high cost and high income and fixed profit-sharing.When the market price fluctuating,under these pricing principles the actual transaction price may increase or decrease to regulate the revenue of both sides.Moreover,the paper constructs a "carving cake " model of cooperative game to further investigate the pricing of the contract,and the analysis result is that as the contribution of the cooperation from two sides are different,the way of price adjustment are seeming not the same also,but in fact they are all the average distribution of cooperation net revenue.Benefit from cooperation is the material basis for the existence and development of Company+famer".From the source of benefit,improving the efficiency of source management by company and production by farmers is the guarantee of continued cooperation between both sides.In practice,cooperation benefit is faced with the impact from agricultural means production markets,and there are some dificult when the company engaging in agricultural research and innovation and the farmer increasing physical assets used in the farmer's production.Helping the company's source management and business capacity,promoting investment in physical assets of agricultural production through institutional innovation of farmland property rights,reconstruction of collective economy,and guidance of the industrial and commercial capital involved in agriculture,Government can improve the precise and effectiveness of supporting scale management of agriculture.