Study Of Contract Farming In Leading Enterprises And Farmers Interests

Since the 1990s, with the development of agricultural industrialization in china, agricultural lead enterprises and order-based farming have been experiencing the rapid development relatively, which plays an important role in promoting the economic progress of the countryside However in the development of order farming, there are some common problems, including the low rate of order fulfilment and the break of contracts. These problems reflect the imbalance and weakness in the relations between lead enterprises and farmers of order-based farming, sometimes even the complete break of their interests, which seriously limit the industrialization of agriculture. According to the order farming practice, all the units, especially lead enterprises and farmers need to establish the harmonious and stable relations, which can influence the healthy progress of order-based farming greatly. Therefore, the study of problems about relations between lead enterprises and farmers has great theoretical and practical significance for the healthy development of order farming.At present, the domestic and abroad scholars have carried out the effective study on order farming with the theory of new-system economics, such as the cause for the order farming, the choice of orders and so on. Some studies just emphasize the models of relations and performance analysis, but lacks in the systematic analysis. Hence, with the application of the option theory and contract theory in the economics under new system, with the help of experiences in the ISA, Japan, South Korea and Thailand, as well as some related cases, this thesis tries to have research and analysis on the condition and existing fundamental problems of the relations between lead enterprises and farmers, especially the deep reasons On the basis of analysis, it gives several political suggestions for the establishment of relations between enterprises and farmers, including four parts of the whole thesis.Part One is about the study of relations between lead enterprises and farmers in the order farming, including the development of order-based farming in China and analysis about the general situation and existing problems in their relations with the increasing number of lead enterprises and their great energy, the most direct embodiment among those problems is the low rate of ordeR fulfillment, whose fundamental reason is the unbalanced and weak relation lacking in common interests betweef lead enterprises and farmers. The profound reasons mainly include the asymmetry of the status of peasant household and the companies, which threatens to guarantee the interests of peasant household, lack of effective internal interest balance mechanism between leading enterprise and peasant household, lack of flexibility and incompleteness of the contract, cheating behavior led by asset specificity, lack of risk sharing mechanism and effective legal restriction, and the absence and default of government function. The Second Part, based on the comparative analysis of the Wen's Model and the interest relationship between Qionglai Jinli Industry Co., Ltd and peasant household, puts forward that the interests of enterprise and peasant household may be achieved in different ways due to different strengths of leading enterprise, but the direction of order agriculture is the same, that is, the achievement of unity of interests through organization and system guarantee to balance the opposite of interests between enterprise and peasant household. The Wen's Model relies on the strong strength, while the Jinli. Industry Co., Ltd relies on Jinli pig industry cooperative society, but they have achieved the same direction in different ways. To achieve this goal, non-market-arranged system guarantee based on the market mechanism must be established and perfected. The functions of macro-control and guarantee of the government should also be fully developed.The Third Part studies the development of foreign contract agriculture and the interest relationship between enterprise and peasant household (farm). Foreign order agriculture is also known as "contract agriculture". Learning from the experience of foreign contract agriculture development and interest harmony, summarizing the regularity of its occurrence and development will be greatly beneficial to the establishment of the harmonious and stable interest relationship between leading enterprise and peasant household. This thesis mainly probes into the development of poultry industry contract agriculture in US, Japan, South Korea and Thailand and the interest relationship between enterprise and peasant household(farm), and summarizes valuable experience.The Fourth Part is the conclusion of the study and some suggestions for policy. The relationship between leading enterprise and peasant household in contract agriculture is "unity of opposites". With the development of contract agriculture, the major and direct problem is the low rate of agricultural order fulfillment. The underlying reason is the unbalance and fragility of interest relationship between leading enterprise and peasant household. Therefore, the convergence of interests between leading enterprise and peasant household. Therefore, the convergence of interests between leading enterprise and peasant household is necessary to achieve the unity of interests, which requires the establishment of system and perfection of organization, and the maintaining of the general balance of the interests between leading enterprise and peasant household. In addition, some suggestions for policy to build a harmonious and stable interest relationship between leading enterprise and peasant household in contact agriculture are also proposed.