Economic Thought On Innovation Of The Agricultural Industrial Organization--A Preliminary Probe Into The Producing Managing Pattern Of "Corporation+Base+Peasant Households"

It's been more than 20 years since the reform of the China's rural economic structure took place in the late 70's.The household contract responsibility system has transformed the rural production relations under the planned economy. So that the tremendous power, which was inhibited by the formerly planned economy system, in China's rural economy explored swiftly and violently in a short time. Before mid-90's, the markets for vast majority of peasant households selling agricultural products belonged to the basic market pattern. In fact, there were not so much contradictions between the peasant households and the market. The decentralized peasant households, owning the land-use right, combined the traditional farming technique and some mordent agricultural technique and use them on their small pieces of land. So they have continually increased the output of agricultural products in an unprecedented way. However, in recent years, the market pattern for agricultural economy has taken irreversible changes. The peasant households, as the basic organizational units for agricultural production and management, can no longer meet the need of the development of the more and more mercerized farming and sideline production. Also the traditional circulation organization and service organization (supply and marketing cooperative, credit cooperative, agrotechnical station etc) can no longer meet the need of transformation, which is from close to openness, of the rural economy. The contradictions between small peasant households with decentralized management and big markets emerged and sharpened gradually. The natural characteristics of the agricultural industry include: The land asset are of intense special-purpose. The production units are highly decentralized. The degree of managing industrialization is low. And both the market demand price and income flexibility are low. All these characteristics lead the production and management of the peasant households easily fall into the trap of disadvantageous terms of trade. These characteristics also make it difficult for the peasant households to clear the passage between themselves and consumers who are also extremely decentralized as themselves. So, they can only gain a little comparative advantage. The fundamental mean for alleviating such contradictions is to carry out organizational innovation with the decentralized peasant households as its main body. In some area, there emerged the "Corporation+ Peasant households" pattern in which some "L type corporations" lead peasants to go in for production. Such pattern preliminarily eliminates the contradictions between the small peasant household and the big market. The major advantages for such "Corporation+ Peasant households" production and management pattern are: 1.It helps realize the counterpart between small productions and the big markets. 2. It helps essential factors of production flow and combine. 3. It helps the agriculture go in for large-scale production and make technique progress.4. It helps raise the level of systematization and commercialization for the agricultural production. 5. It helps raise the comparative advantage and protect peasants' interests. The more important thing is that this production and management pattern economize on the trading expenses during agricultural production and management process. Because every decentralized peasant households would have to spend considerable expenses in searching, processing, and arranging market information, consulting and negotiating with the trade side and verging them to keep a contract if the peasants try to enter the market independently. While in the organizational structure of "Corporation+ Peasant households", the trading objects and trading relations become comparatively clear and constable both to the corporations and the peasant households. So it greatly reduce the trading expenses which are evolved from the corporations or enterprises' constant searching for contract partner and establishing trading relations in their own market.But on t...