Investigation on New Agricultural Business Models in China — Integrating Smallholders into Modern Agriculture

Abstract

China’s agricultural sector is undergoing a critical transition from fragmented smallholder farming to large-scale, modernized operations. Smallholders often face challenges in evolving into qualified operators of modern farms due to constraints in capital, technology, management capacity, and risk resilience. In response, various innovative agricultural business models have emerged. This paper systematically reviews and compares five mature models currently in practice, focusing on their operational mechanisms, benefit-sharing arrangements, risk allocation, and applicable contexts. The study finds that each model possesses distinct advantages and limitations, influenced by factors such as agricultural product types, regional resource endowments, and farmer capabilities. Among these, the “Enterprise + Farmer” sharecropping model facilitates risk-sharing and mutual benefit, serving as an effective pathway to integrate smallholders into modern agriculture and promote moderately scaled operations.