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With the acceleration of urbanization, a large number of rural labor forces have been transferred. As the basic means of production, land circulation is becoming more and more frequent. Scale management and land circulation have become the necessary trend of agricultural modernization. Based on the purpose of maximizing the interests of the participants and further optimizing the allocation efficiency of land resources in the process of land transfer, this paper constructs a dual principal-agent model of farmers and intermediary organizations, intermediary organizations and scale operators, which is multi-to-one and one-to-many principal-agent relationship respectively, and finds out the optimal level of effort. Finally, it analyses the influence of different factors on the interests, and puts forward some suggestions to the principal and agent based on the analysis results, in order to promote the further development of the land circulation market.

Two Level Principal-Agent Analysis in Farmland Transfer