Abstract:

Economic growth is demand-led when the market is in short supply where the key lies in the demand side.However，when there is no supply shortage or in some cases there is even oversupply，the problem lies at the supply side and the solution is to tackle “quality and productivity”，which is manifested in that supply does not adjust to changes in demand.Supply-side reform in agriculture is necessary because of factor misallocation which itself results from market distortion.Supply-side reform in agriculture thus requires the improvement of market mechanism so that market can play a central role in factor allocation.It is to correct the distortion arising from factor allocation on the base of administrative power.To improve factor market allocation efficiency in agriculture，it is essential to deepen reform in agriculture such that labor and land can be orderly mobile and a new model of urbanization can proceed more rapidly，which requires the simultaneous development of both agricultural modernization and urbanization.Supply-side reform in agriculture is a systematic project.

Key words: supply-side reform in agriculture, market mechanism, factor productivity