| The paper mainly regards western economic theory as guidelines, using the basic method that the theory combines with reality, systematically studies the relationship between Agricultural Industrial Organization (AIO ) and System of Agricultural Cooperation ( SAC), emphatically describes the function of the Innovation of SAC (IS AC) during the optimization to AIO.Firstly, on the basis of analyzing static relationship between SAC and AIO, the paper has explained why the optimization to AIO requires ISAC and how the optimization to AIO leads to ISAC specially. Secondly, after analyzing the current situation about the AIO, Agricultural Cooperative Association(ACA) and SAC in Xinjiang in detail, it points out AIO of Xinjiang falls behind because of the serious problems, such as the macro environment is not loose enough, and the traditional system does not adapt to the development of the cooperative system, and the SAC lacks related policies and measures, management system and effectual preferential policy, and it is not smooth in the mechanism on linking up AC A and the government, and the SAC lacks the information sharing platform, and the AIO is in small scale and single structure, and the decentralization and disequilibrium among the areas are serious, and inside operating mechanism is imperfect and abnormal, and it is insufficient to support funds and self-developing, and the SAC lacks the basic terms which develop the SAC. T hirdly, in v iew of t hese p roblems, the paper p uts forward t he overall t hinking o f ISAC in Xinjiang. It involves the orientation of developing the SAC, fully utilizing the existing o rganization and system resource, the selection of the mode of developing AC A. Finally, the paper proposes the corresponding implementing scheme of ISAC in Xinjiang, by fostering from the subject of the SAC, giving the assurance of the development of the SAC, setting up the policy system of ISAC.
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