Analysis Of Government Function In The Development Of New Agricultural Business Entities

Research on the problem of agriculture, rural areas and farmers has been paidclose attention to by government and scholars. The problem, such as the gap betweenurban and rural areas, rural hollowing, has become an obstacle restricting thedevelopment of social economy. In my opinion, the problem of agriculture, rural areasand farmers can not be solved by maintaining stability. It must be solved bydeveloping. New agricultural business entities are the most advanced productiveforces in rural economic organizations, which play an important role in promoting thedevelopment of rural economy as the link between government and rural areas.However, there are many problems in the development of the new agriculturalbusiness entities. Through the methods of literature research and empirical research,the article introduces several common forms of the new agricultural business entities,such as large farming households, professional farmer cooperatives, family farms andso on. The author finds that there are many problems in the development of businessentities, production and operation, and market links, such as irregular operation, toomany market links and obscure brand effect. Firstly, these problems are relevent to thenew agricultural business entities themselves. It is impossible for agriculture to obtainthe development speed of the second or third industry in a short time because of its special nature. Secondly, agriculture is greatly affected by external environment, itdepends on not only the weather such as climate and natural disasters, but also on themarket function because it can not determine the price in both supply and demand onthe market. Thirdly, the support from government is not enough for the profit-drivennature of production elements market such as capital, land, and talents. Governmentdid not fulfill the role of macro-control to guide production factors flowing to the newagricultural business entities.According to the problems existing in the development of the new agriculturalbusiness entities, the author states the role of government in the new agriculturalbusiness entities from the demand of business entities and government policy on thebasis of questionnaires, interviews and telephone interviews to the corporaterepresentatives of large farming households, professional farmer cooperatives,township agricultural technology center and Chongming green association.Countermeasures and suggestions proposed in the paper are closely combined withChongming’s practice and experience of agricultural modernization in developedcountries. The paper analyzes functions of government in new agricultural businessentities, that is, government should encourage innovations in various forms on thebasis of laws and regulations, government should regulate their operation and offergood policies to improve initiatives of new agricultural business entities, andgovernment should help to construct the brands of agricultural products and reducecirculation links as much as possible in approaching market to convert the circulationcost into producers’ profits and consumers’ welfare.