Abstract
Contract farmers depend on leading companies in China. In this study we analyzed multiple factors of farm households, including dependence on management resources, effective delivery of information to consecutive trading businesses, and various support systems, as a case example of contract farming with companies. Regarding the parameters of production policies between leading companies and contract farmers, including controversial issues and direction of development, the following three points were noted: 1. The establishment of a joint holding corporate stock consortiums among Agricultural Co-operatives, leading companies and contract farmers is an important area of study. 2. The process of improving agricultural industrialization and the establishment of an insurance foundation for agriculture is an important component of the agricultural economy. 3. Support from the government in the areas of include tax abolishment, building of facilities and infrastructure and abolishment of traditional systems that impede development and economic growth is important for the success of industrializing agriculture.
