The Mechanism Of Community Supported Agriculture Development Based On Principal-agent Theory

Since the 1970 s,due to the impact of industrialization and modernization thinking,China’s agriculture has entered the stage of industrialization,and the corresponding rural urbanization has also accelerated the process.A large number of rural population poured into cities,farmlands were abandoned,rural population problem was serious.Industrialization seriously damaged the environment,made agricultural development unsustainable.The improper use of pesticides and modern facilities caused numerous food safety problems in China.In this context,people began to pursue green,organic,safe and sustainable new food network system.As an agriculture model in the alternative food network system,community supported agriculture stands out and becomes the focus of attention from public.As an emerging agricultural production model,community supported agriculture plays a role in ensuring food security,regulating agricultural product markets,responding to industrial agriculture,promoting sustainable agricultural development,reconstructing urban-rural relations,and promoting rural regional development.It is one of the most widely used agricultural operation modes in major developed countries in the world.Community supported agriculture emphasizes the cooperation between consumers and farmers,but in China the relationship between farmers and consumers is particularly difficult to achieve the direct connection.So the extensive community supported agriculture projects are promoted by third-party organizations in China.Therefore,based on principal-agent theory and incentive mechanism,we studied the development mechanism of community supported agriculture driven by companies.This thesis proposed a consumer-centered model of community supported agriculture promoted by fresh produce companies,Analyzed the principal-agent relationship and incentive problems among investment consumers,fresh produce companies and farmers.The cooperative mechanism model between investment consumers and fresh agricultural products companies and the quality incentive mechanism model between fresh agricultural products companies and farmers were constructed.Through solving and analyzing the model,we put forward the countermeasures for fresh agricultural products companies to face the risk-averse investment consumers and encourage farmers to produce high quality agricultural products.So as to promote the development of fresh agricultural products companies.Finally,some suggestions on how to develop community supported agriculture are put forward in order to promote the development of community supported agriculture in China.