Abstract: Small towns are of strategic significance to the rural social and economic development.The prospering of the economy of small towns will no doubt stimulate the growth of country economy.The rapid growth of country economy is the fundalmal way to solve the “Three Agricultural Problems”.The development of Township economy is closely related to the growth of rural economy.Without the stimulation of the dynamic force of township economy,the prosperity of rural economy is out of the question,to say nothing about narrowing the differences between city and countryside.

Key words: Three Agricultural Problems, county economy, small town