| The household contract responsibility system has made a significant contribution to China, however, with the development of economy, it restricts the efficiency of the agricultural economy to improve to some extent. Allowing the rational circulation of land occupancy right becomes the inevitable trend of rural land reform, and the scale and speed of farmland circulation in rural areas are becoming larger and faster. Major gain production areas are the key to ensure food security in China, as more than 70% of food production in China is from these areas. In this paper, we focus on the in influencing factors and economic benefit of farmland circulation in major grain production areas. The farmland circulation in major grain production areas has the following characteristics: the rent fee has obvious difference and it is on the rise as a whole; there exists regional difference; non-economic factors hinder farmland rent-out behavior and economic factors hinder farmland rent-in behavior; the contracted period is very short. At the same time, a serious of problems in the farmland circulation process should not be ignored, such as loss of main body bearing farmland circulation, lack of a sound trading intermediary service organization, unsound social security system, serious condition of nonfood production in rent-in farmland, unclear definition of farm subsidies after farmland transferring.We analyze the influencing factors of the farmland circulation decision and areas based on the Logistic model and Tobit Model. The results show that age and occupation of householder, family burden, block number of land, area of contracting arable land have a negative impact on farmland rent-in decision and the transferring area, householder’s education degree, family scale, number of agricultural labor force. Farming income proportion, relationship of the two sides in the circulation have a positive impact on them. However, number of agricultural labor force, family burden, block number of land have a negative impact on farmland rent-out decision and the transferring area, householder’s age, householder’s occupation, householder’s education degree, family scale, area of contracting arable land and relationship of the two sides in the circulation have a positive impact on them.We also make a comprehensive analysis of the economic benefit in farmland circulation from three aspects, respectively are inputs and output of grain production, grain production efficiency and family income, and we get three conclusions. Firstly, farmland rent-in behavior changes the structure of the grain input. Empirical results show that rent-in households increase the liquid capital input 6.78 yuan and 5.27 yuan for wheat and corn, decrease the labor input 9.63 hours and 37.03 hours respectively. Secondly, farmland circulation can improve farmers’ agricultural comprehensive efficiency which mainly attributed to the improvement of technical efficiency, and there is still a large room to improve it. Thirdly, farmers’ income increase after farmland circulation, and the income structure of rent-in households and rent-out households have different change. On one hand, rent-in households’ and rent-out households’ income in 2012 are obviously higher than the year before land transfer, on the other hand, rent-in households’ and rent-out households’ income in 2012 are all higher than non-rent households’. After farmland circulation, farming oncome becomes the main source of rent-in households, and off-farm working becomes the main source of rent-out households.A well-functioning land rental market is one of the most feasible means to increase factor allocation and raise the efficiency of land use in rural areas, and it also increases farmers’ income. Without changing the grain use for circulation land, farmland circulation can help to increase grain production, so we should have a correct understanding of farmland circulation. To comprehensively promote the development of farmland changing and safeguard national food security, we suggest our government to train new cultivated land operators, explore new mode of land circulation, have a reasonable restrictions on nonfood production, improve the land circulation system, innovate the grain subsidy, encourage farmers owing land over 50 mu to plant food crops and increase the investment in technology. |