Study On The Contract Efficiency Of Industrial And Commercial Capital Investment In Agriculture

With the attraction of profit and the encouragement of policy, the boom of industrial and commercial capital investment in agriculture continues. However,most of enterprises before investment rarely involved in agriculture, which means they lack a good understanding of agriculture, and their poor management lead to failure. At the same time, due to the natural characteristics of agriculture is different from other industries, enterprises that invest agriculture will establish cooperative relations with the farmers, but as the relative scarcity of resources, industrial and commercial capital tend to dominate in the game between capital and farmers. It seems particularly important that how to promote the interests of fair distribution between industrial and commercial capital and farmers for agricultural sustainable development. Contractual relationship formed by cooperation is the basis of profit distribution of the capital and famers, therefore, there are some problems the industrial and commercial capital must face because of the new wave: how to coordinate the relationship between enterprises and farmers, how to choose the optimal mode of contract, property right configuration and reputation mechanism to promote the efficiency.In this article, the theoretical review was firstly carried on, summarizing and briefly introducing the present situation of the industrial and commercial investmentin agriculture. Secondly, the main modes of contract of the industrial and commercial investment in agriculture are divided, what's more, the analysis of the characteristics and disadvantages of each contract mode is inculded. Thirdly, the theoretical model of the efficiency of contract is presented in this article, according to mathematical derivation comparative analysis of the social optimum efficiency and single phase of the contract, the efficiency of commodity contract elements with a long-term contract as well, analysis of factors affecting the efficiency of the contract, based on different contract conditions and the optimal incentive, is involved in this article. Finally,relevant case-depth analysis base on the contract efficiency model reveals that how the factors that influence efficiency of contract play a role in the specific case.On the basis of theoretical combination, model validation and case analysis, this article draws the following conclusions: Reputation, property right configuration,market price fluctuations, salary system fit, resale costs and mortgage mechanisms affect the efficiency of contract. Reputation and property rights can improve the efficiency of contract. Goods under the contract, the bigger the farmers resale costs,the higher the efficiency of contract. The greater scale of peasant households, the higher the efficiency of contract. The stronger the farmers' dedicated relationship, the higher the efficiency of contract. If farmers pay fluctuation more consistent with market prices, the efficiency of contract is higher.