Abstract:

Under the so-called 'de-involution' of the young leaving and women and elderly left behind in the countryside, how can the Chinese rural sector accomplish a structural transition and achieve large-scale agricultural production? This is the issue to be discussed in this paper. The conventional understanding is that large-scale production is about land concentration and scale management through agricultural businesses, family farms, or agricultural cooperatives. In our view, given the unfavorable Chinese land/ people ratio, any attempt to eliminate household-based, small-scale farming is bound to fail. This study suggests that a paradigm shift is needed from 'Scale Management' to 'Scale Service.' Today's agricultural production is no longer a 'Pole-like Straight Way' model. Different stages and processes of production have their own unique characteristics and functions. With the advancement of agricultural technology and the marketization of production factors, agricultural service has needed to catch up in scale. However, this development does not have to be based on land concentration and the elimination of household farming. On the contrary, it can be done through local social networks. Local social networks can significantly reduce the organizational costs of large-scale services without changing the current household-based small farming community structure. This will bring about a new system of 'Agricultural Business Management' that can both improve production efficiency and protect small farmers' livelihoods. Such a model is a combination of tradition and market. It should play an important role in the rural reconstruction and urbanization of central and western China.

Key words: Agricultural economic transition, 'de-involution', scale agriculture, scale service of agriculture, local social network