This year in some main grain producers of the key grain production areas in China have actively reduced the grain production. Anbound Think Tank believes that if this is continuing, it would bring negative effects to the efforts of the Central Government to encourage agricultural development. First of all, this will not only lead to a sharp decline in rural land transfer prices and reduce the land farmers' income, but also impacting the rural scale of operation and the land reform, as well as disrupting China’s systematic measures on food safety and reduce the enthusiasm of commercial capital input in agricultural sector. In some areas, the circulation of the land is worthy of attention, and the production reduction and land circulation will cause chain effects on rural reform, farmers’ income, food safety and commercial capital input in agriculture.