Abstract: The size of farmland transfer and the contractual arrangements have significant regional differences in China; sublease or shareholding cooperative system are the typical embodiments of the regional differences in farmland transfer and contractual arrangements. The contract selection theory and the transaction cost theory can be used as the theoretical basis for the analysis of the regional differences of farmland transfer and contract selection. Through a difference comparison between the typical cases of Zhongshan City and Qingyuan Region in Guangdong Province, the policy implications can be seen that as a relative advanced contractual arrangement in farmland transfer transactions, the shareholding coproduction system is still subjected to the strict constraints of the factor of the organization and management (fees), but that does not mean that it cannot become a conscious choice in the late developing areas. We can have an optimistic expectation for the self-improvement of the adaptability driven by policies.

Key words: farmland transfer; transaction costs; contract selection; lease of farmland; shareholding cooperative system