Research on Breach of Contract Farming Based on Static Bayesian Game

In China contract farming plays an important role in promoting the industrialization of agriculture and increasing the income of farmers. However, the development of contract farming is not mature stage in China, and breach of contract farming occurs frequently. This paper described the risk of contract farming, made a game model of breach of contract farming, used static Bayesian game in order to research into breach of contract farming and find out the reason why the rate of breach of contract farming in China is so high. At last proposed that China´s contract farming should add the financial institutions, strengthen contract management, pay attention to improve the credit worth of farmers and enterprises to reduce the occurrence of default and minimize the economic losses of both finally.