Reaserch On The Profit Mechanism Under Of Farmers And Households In Shanxi

Since the reform and opening up, development speed of agricultural is still slowcompared with the industry in China. As a result, the income of the urban populationand income of the rural population formed a huge gap. Measures should be taken toavoid the happening of this kind of situation, such as supporting the development ofagriculture, increasing income of farmers and improving farmers’ living conditions.Practical experience shows that: the industrialization of agriculture can accomplish thisformidable task, it can promote agriculture, integrate resources and increase income offarmers. But the benefit affiliating mechanism between leading enterprises and peasanthouseholds is the core of agricultural industrialization. On the basis of the interestdistribution mechanism, agricultural industrialization will get fundamental developmentand the income of farmers will increase rapidly from the root. This paper introduces theinterest distribution mechanism between leading enterprises and peasant households inShanxi as an example. Research on the interest distribution mechanism between farmersand the leading business in Shanxi have very important meaning to promoting the newrural construction and the promotion of economic development. Research on the benefitaffiliating mechanism between leading enterprises and peasant households in Shanxican help enterprises and farmers form more stable production relationship and interestrelationship, improve the enterprise ability to become the leader in agriculturalproduction, provide important references to promote the development of agriculturalindustrialization of Shanxi province.This paper analyzed the theory and empirical research on the benefit affiliatingmechanism. According to the collected statistic materials and investigation report, thispaper made detailed explanation to the current situation of benefit affiliating mechanismand analysed the problems and reasons of benefit affiliating mechanism. At the end ofthis paper, suggestions will be put forward to perfect the benefit affiliating mechanismbetween leading enterprises and peasant households in Shanxi.The contents of this paper include the following:1. The organization mode between leading enterprises and peasant households inShanxi.2. The type of the benefit affiliating mechanism between leading enterprises andpeasant households in Shanxi, and the characteristics of each type. 3.The influencing factors of the benefit affiliating mechanism between leadingenterprises and peasant households in Shanxi.4.The existing problems and the causes of the benefit affiliating mechanismbetween leading enterprises and peasant households in Shanxi.5.The suggestions to perfect the benefit affiliating mechanism between leadingenterprises and peasant households in Shanxi.The conclusion:1.Shanxi province mainly relys on leading enterprises drive peasant households,the other driving mode is less, rural cooperative organization in Shanxi needsfurther development.2.The benefit affiliating mechanism between leading enterprises and peasanthouseholds in Shanxi have two types: commodity contracts as the hub, contract offactor as the hub. At present, the industrialized operation of agriculture in Shanxi isstill at the primary stage, peasant households only concerned about the problem ofproduct sales. They pay no attention to the deep processing, so the problem ofbenefit affiliating mechanism between leading enterprises and peasant householdsin Shanxi needs further analysis and summary.3.The existence problems of benefit affiliating mechanism between leadingenterprises and peasant households in Shanxi: for peasant households, theproduction scale is small, the risk is huge, the profit is little; for enterprises, thenumber of leading enterprises is little, scale is small. At the same time, they lack ofsupport from the government and capital investment.4.Leading enterprises and peasant households need to form a harmoniousrelationship. Leading enterprises and peasant households are rational economic man.They will try their best to maximize their own interests when in the game state.Therefore, they must sign a written legal documents in the contract in order to makethe contract receive legal recognition and protection.5.Enterprises and new peasant households will form community of intereststhrough establishing property right relations between new peasant households andenterprises. They will distribute profits into two common average, and theintegration of agricultural industrialization will come true.