A Study on the Contractual Arrangement of Agricultural Land Transfer and Vertical Coordination of Agriculture Industrialization

The development of agriculture industrialization is the inevitable path for China’s agricultural modernization. Highlighting the innovation and choice of agricultural land transfer system as well as the organizing pattern of agriculture industrialization has both theoretical and practical significance for promoting agricultural productivity, raising peasants’ income level, building harmonious three-industry and urban–rural relationships and facilitating China’s urbanization. The nature of agriculture industrialization is the contractual arrangement of vertical coordination between agricultural production and distribution chain. Agriculture industrialization projects are generally land-intensive. Therefore, the arrangement of agricultural land system, including the ownership, right to use and usufruct concerning agricultural land as well as the initial distribution and circulation of agricultural land may affect the transaction costs of the main parties involved in the vertical coordination of agriculture industrialization such as peasants and leading enterprises, etc., thus impacting the coordination.