Based on the state governance background of peasant household oriented land circulation, I analyzed characteristics of peasant household oriented land circulation. The characteristics mainly include uncertain definition of rural land circulation, significant off-media feature of land circulation, long-term land circulation contract, farmers’ preference of peasant household oriented land circulation, and progressive path of land circulation. The essential feature is the progressive mode of land circulation. Under the existing property right, it realizes the perfect combination of modern production factors and traditional agricultural, and the combination of traditional family safeguarding function and modern social mutual growth spirit. Thus, it shows relative independence and manifests the idea of common prosperity. The opportunity cost of peasant household oriented land circulation is minimal, institutional cost will increase circulation risk, and what’s more, the cost for state governance of peasant household oriented land circulation is minimal. It comes to conclusion that building proper and harmonious land circulation mechanism is responsibility of central government and favorable for healthy development of peasant household oriented land circulation.