Induced Institutional Transition of Contract Farming in Shandong Province

This article describes the process of institutional transition of contract farming in Shandong Province. The changes in preparatory stage of contract farming express in: One, the information asymmetry of the two sides of the contract is reducing; Two, the security system of contract farming tends to be perfection; Three, the organizational form of contract farming tends to be simplification. The measures taken in production stage of agricultural product are as follows: The first is investment in means of production; the second is perfection of field management; The third is soundness of quality test. The measures taken in purchase stage of agricultural product are as follows: First, product is developing from preliminary working to intensive processing; Second, leading enterprises develop to large-scale and standard. The changes in profit distribution stage of contract farming are as follows: First, the profit relationship between enterprises and peasant households turns from opposition to mutual benefit. Second, the means of default issues turn from emotional self-discipline to rational self-discipline. Performance of contract farming is analyzed: First is putting forward the transformation of agricultural operational form; Second is reducing the uncertainty; Third is truly realizing the risk sharing and participation of interest. The defect of institutional transition of contract farming is discussed: First is no longer the operational form that benefits many farmers; Second is still the typically incomplete contract; Third is expansion of capability gap of business game between leading enterprises and farmers; Fourth is the still existence of information asymmetry; Fifth is informal institution falling behind formal institutional arrangement. The corresponding countermeasures are put forward: First is developing professional cooperation; Second is completing land circulation system; Third is constructing honest information system; Fourth is building social honesty system.

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Asian Agricultural Research, 02, 09
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 Record created 2017-04-01, last modified 2019-08-26

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