Research On Contract Governance Of Family Farm

The family farm appears in the central file of 2013 for the first time.The file says that "create a favorable policy and legal environment,give subsidies and other incentives to support joint household management,professional large farmers and family farms." Family Farm is an upgraded version of the farmer based on family-run.It is a new agricultural business entities which family member as the main labor force and farm income as the main source of income,do large-scale,intensive,commercialization of agricultural production.Family farm promote agricultural modernization.However,there are various problems in the development of family farms,mainly reflected in: firstly,family farms exhibit complex and diverse organizational characteristics,which lead to family farms be more difficult to grasp and understand;secondly,too much emphasis on the difference between family farm and traditional farmers,while ignoring the link between the two entities;thirdly,there is lack of profit mechanism between farmers and family farms,so there is a lot of instability contract of family farms;fourthly,the family farm has changed the face of basic governance structures and traditional rural communities,resulting in the loss of social capital and the collapse of community mechanisms.Such practice problems of family farm are urgent to expand the academic research.For the main problem of family farms,this study is about the family farm contract governance and sustainable development.Family farms are re-combination of elements.there are different forms of contract selected.Firstly,based on field research,this study summarizes the different types of contracts selected of family farms,and analyzes different contract governance structures from the perspective of transaction costs.Secondly,built on the theoretical framework of embedded and transaction costs,this study uses the case comparative method to analyze the contract stability of family farm.Lastly,this study discuss the sustainable development of family farms.The sustainable development of family farms lies in the stability access to resources and be harmony with the external environment.Therefore,this study uses fuzzy mathematics to method to assess the family farm household welfare.In this study,research contents and conclusions are as follows:1.On this basis of combing the relationship between family farms and small-scale peasant,this study noted the historical starting point for development of family farms.To develop family farms is an important measure to promote the development of modern agriculture.which is helpful to realize the national goals of the four modernizations synchronization.Family farms promote moderate scale management,the development of rural cooperative economic organizations,and cultivate new career farmers.but its development is still affected by existing farmers differentiation.The main characteristics of farmers differentiation is uneven and semi-urbanization.So in a very long period of historical time,large-scale agricultural operations will be long-term coexistence with the peasant economy,which is the history starting point of the development of family farms.2.Through the 111 family farms questionnaire,this study summarizes organizational characteristics of family farms and notes their significance in promoting the transformation of agricultural business mode.Family farms have a more balanced combination of product factors,in particular the injection of capital and entrepreneurship,so that the value of land can be improved.Family farms have more diversified access to sales channels and market information,so the organization level of agricultural business can be improved.Family farmers are risk appetite significant,and have more needs of quality control technologies in technology adoption,so that promote the agricultural structure adjustment and agricultural added value upgrading.Under the background of the development of family farms,the changing way of agricultural business focusing on that agricultural capital deepening and faster.Therefore,the development of family farms is not only a product of the progress of agricultural productivity,but also reflects the higher level of agricultural productivity pursuit.At the same time,the development of family farms will bring about changes in the corresponding relations of production.The balance of the productive forces and production relations,is the key to the sustainable development of family farms.3.Based on the field research material,this study sums up the type of family farm contract selection.Family farms have complex contracts,obtain land and labor resources from the outside.There are three main types of land contract: one is spontaneous land circulation between family farms and farmers(the market mechanism I);the second is the land circulation under the intervention of rural collective economic organizations(the market mechanism II);the third is the land circulation based on human relations within the community-based network(community mechanisms).Land price formation mechanism is different as the different type of land contracts,and the contract position of farmers are not the same,too.There are five types of family farm employment contract:hosted model,business model,joint ventures,subcontracting mode,family mode.4.From the analytical paradigm of Williamson’s governance structure and organization form,family farms’ management contract of employment was analyzed.Research shows that the family farm’s employment contract and its governance structure is still relatively junior.Business model represents the most formal governance structure,and family model is the formation of a relationship of trust,on behalf of the informal governance structure.Hosted mode and sub-mode in favor of formal governance structures,and joint ventures is biased in favor of informal governance structure.In the five types of employment contract,the joint venture achieves the maximization of yield per mu,and family patterns achieves the maximization of profit per mu.5.Under the view of transaction costs,this study gives the empirical analysis of family farms’ contract stability and their influencing factors based on the data of 111 family farms.Results show that 75.7 % family farms choose the formal land transfer contract and 56.8% family farms choose to hire long-term workers.Further analysis reveals that transaction costs have a certain impact on contract stability of family farms.On the one hand,the land transfer mode,the infrastructure cost in initial investment,the term of land transfer and tenure security have a significant impact on family farms choosing the formal land transfer contract.On the other hand,the proportion of family labor input,the land area,family farmers’ main residence and the type of family farms have a significant impact on family farms choosing to hire long-term workers.6.By Livelihoods questionnaire of farmers under the background of the development of family farms,this study analysis the different resources obtaining mechanisms of family farms and its effects on farmers’ welfare.Land is most critical resources of family farms.Family farms can obtain land resources through community-based mechanisms,and also through the market mechanism.Thus the impact on farmers welfare of three mechanisms vary a lot.Research shows that family farms in three different mechanisms of resource access,the farmers’ welfare state are poor.In contrast,the market mechanism I has the largest benefits to farmers in the aspect of the extent of the rural labor market;market mechanism II brings maximum benefit to farmers in aspect of family income,and community mechanisms brings the maximum benefit to farmers in the aspect of social security.The balance between the development of family farms and farmers will be an important test of family farms sustainable development.Family farms promote agricultural income and resources centralized distribution within the village,but the farmers did not benefit due to the development of family farms.so the development of family farms need to establish better mechanisms of benefits distribution,promot household income;and also built the social security system.7.By comparing the two villages which have different farming structure(one is dominated by large farms and the other is dominated by farmers)in terms of resource use,the operation of irrigation systems,community autonomy and democratic participation,this study summarizes the relationship between family farm and community welfare.family farms may have a positive impact,and also may have a negative impact on community benefits.The impact is firstly related to the size of the family farm.The larger size of family farms,the fewer rural community welfare.The larger family farms lead to land resource more centralized,and change structure of community: vulnerable class rise,the middle class gradually digestion,rural communities under the control of a few large farms.Peasant livelihoods also changes a lot,mainly for the rural households headed by grandparents,the lack of human capital of these farmers make them face a major test in employment.Relationship between family farms and community well-being also connected with social capital.Primitive social relations within the community of family farms,helps build good relationships with farmers,and brings effective supply of local public goods.This study has a certain degree of innovation in research perspective,research content and research methods.In research perspective,this study adopts the perspective of transaction costs and organization sociology.In research content,this study not only concerned with the characteristics of economic activities of the family farm,but also concerned about the social impact of family farms.In research methods,this study adopts qualitative research and quantitative research methods.However,there are some shortcomings,such as lack of quantitative analysis of organizational performance.