Study On The Economic Benefits Of Small And Medium-sized Farming Enterprises In Heze

With the continuous development of the economy, rural land of decentralized and fragmented has showed many problems, such as low land productivity growth, low labor productivity, and unreasonable allocation of resources. Therefore, China should make an in-depth reform in the land system to change the form of agricultural production.At the same time, the operation cost of small scale of agriculture is higher than that of large farms because of transaction costs. So small scale farmers are living in an unfavorable place. Young rural farmers have been appealing to the city, because their payment by working in the city is larger than grain production. The traditional agricultural farming system in agricultural province must be replaced by a large scale, specialized and organized system. As a new type of agricultural organizations, farming enterprises operate with an advanced management system to engaged in commercial agricultural production and related activities. It is a more advanced productive factor, which has a great advantage in adapting to the changeable market environment and facing the fierce international competition. However, if we wanted to ensure national food security and avoid the no-grain-plant tendency, first of all, we need to promote the benefit of grain farmers, especially for the large scale farming companies. Therefore, this paper aimed to analysis the economic benefits of farming enterprise on the base of input and output, then pointed out some problems and policy recommendations of farming enterprises.The paper first showed the background and purpose of this study, and some basic conception and basic theory are also defined. Combining with the existing literature, the paper used field research method by investigating 43 registered farming enterprises in Heze. We mainly investigated the input and output about these enterprises. On the base of the investigation form, the paper analyses the input of these farming enterprise, and the input include land, technology, investment and sales. The result shows that the 43 enterprises' efficiency are not high, the average profit of these enterprise was 359 yuan per mu but the economic benefits of enterprises which have invested in fixed assets are much higher.At last, we summarize the problems existing in Heze City farming enterprises and puts forward some recommendations. The problems include, 1) Farming enterprise legal entity definition is not clear. 2) Land market lead to higher land cost.3) Poor infrastructure and rural financial market are the obstacles to raise the economic benefit of farming enterprises. 4) The owners of farming enterprises are lack of awareness of the market. The recommendations included, 1) Establishing the registration system on farming enterprise.2)Giving more financial and policy support to farming enterprise.3) Improving the rural land transfer market to reduce the cost of landcost,.4)Encouraging the talents returning hometown to start up business.