Research On Incentive Model Of "Company+Farmer" Based On The Principal-Agent Framework

In January 2020,Article 17 of the "opinions of the CPC Central Committee and the State Council on focusing and working on " agriculture,rural areas and farmers "and ensuring the realization of a comprehensive well-off society on schedule" pointed out that "establish and improve the mechanism for farmers to share the value-added income of the industrial chain,form competitive industrial clusters and promote the integrated development of rural primary,secondary and tertiary industries".As an important measure of targeted poverty alleviation,industrial poverty alleviation has played an extremely important role.In the document "opinions of the CPC Central Committee and the State Council on working well in the key work of fully supporting rural revitalization in 2022" on January 4,2022,focusing on industry and promoting rural development,it puts forward relevant policies such as exploring rural diversified resources,focusing on developing agricultural processing,supporting large agricultural counties to gather modern agricultural product processing industry,and guiding small and medium-sized enterprises to rapidly and vigorously develop grain and oil machinery processing and food production in production areas,Taking industrial revitalization as one of the five rural revitalization and development strategies points out the direction for its policy implementation.The modes of industrial revitalization adopted throughout the country include the introduction of funds to rise the secondary industry and tertiary industry,such as bringing tourism into the countryside and vigorously developing agricultural leisure tourism,some through the establishment of enterprises to drive the sales of agricultural products,and some directly introduced foreign enterprises.Among them,the mode of cooperation between enterprises and farmers has an obvious driving effect on the development of rural industry.There are many such modes in China now,and the "company + farmers" mode belongs to one of them.Under this model,how can the "company + farmer" model be more in line with the interests of companies and farmers is the problem we need to study.The main research object of this paper is N Food Co.,Ltd.,which is a typical and representative enterprise in line with this model.The "company + farmer" model adopted by the company is one of the joint development models of many,many and two industries.Although the operation effect of this model is very good,there are also deficiencies due to information asymmetry and incomplete incentive mechanism: first,the composition of contracted farmers is more male and older;Second,the company has insufficient investment in production tools;Third,affected by the current environment,farmers’ satisfaction with the purchase price is slightly low,and farmers hope to obtain higher income;Fourth,farmers lack the awareness of win-win cooperation and prefer short-term vested interests.Through the research and analysis of the cooperation mode of N Food Co.,Ltd.,the following optimization strategies are put forward: first,the company should sign more contracts with farmers who want long-term cooperation;Second,N Food Co.,Ltd.should increase investment incentives for production tools;Third,raising the purchase price is the most direct incentive measure;The fourth is to strengthen the publicity of farmers,emphasize common interests and long-term benefits,and avoid short-term profit seeking behavior.This paper uses game theory and defines the concepts of business model,cooperation model and incentive mechanism of agricultural product processing enterprises.By using the methods of literature research,questionnaire survey and interview,this paper discusses the incentive problem of "company + farmers" cooperation model of N Food Co.,Ltd.,constructs the principal-agent incentive model of "company + farmers" of N Food Co.,Ltd.,and puts forward some strategic suggestions to improve in order to optimize the cooperation model.