The objective of this paper is to clarify how an agricultural network can be formed among management entities and the way this network can operate. Drastic changes in Japan’s rural localities, or Santi, where innovative farming entities that cul-tivate Mandarin oranges have emerged, prompt a close examination of the varying pat-terns of business deployment and relationship development among relevant Santi actors. Focusing on the effects and uses of various resources, I inves-tigate the character of this agricultural network. This paper pays special attention to mu-tual and complementary relationships between innovative farming entities and Santi as analytical units. More specifically, business resources such as land, human, financial, information and other material resources are incorporated into descrip-tive theoretical models that describe possible connections and/or networks between in-novative farming entities and the Santi. Moreover, drawing on the literature on support for farming business and social systems, I conceptualize mutually and com-plementarily supporting systems between innovative farming entities and the Santi.

Based on this analysis, I conclude the following :

1) The process of conflicts between farm management, companies, and farmer coop-eratives can be classified into 6 types. For this classification, I need to pay atten-tion to the origin of the conflicts and links between diverse economic entities.

2) The process of conflict resolution can be classified into 5 types. In my case study, I have revealed that appropriate resolution processes have been made.

3) There are three directions for restructuring the Santi :

First, the transition to joint selection of farmers’ production will proceed. In this Santi, organizational conflicts arose as a result of each organization’s man-agement efforts that reduces variation in the quality of Mandarin oranges. On the other hand, these conflicts led to the promotion of individual farmers’ participation to their farmer’s cooperative, and the reduction in selection expenses.

Second, the transition to carefully selected selection of farmers’ production will pro-ceed. In this Santi, organizational conflicts arose as a result of the estab-lishment of new selection criteria, as well as a light sensor selection criteria. This conflict was a driving force for technology development and sales volume expansion of ex-tremely early grain oranges.

Third, the conversion to different varieties will proceed. In this Santi, or-ganizational conflicts arose as a result of the existence of farm management that could not shift to other varieties due to the Mandarin oranges’ price slump. This conflict led to the development of processed goods and long-term shipping system and to the acquisi-tion of brand power.