The authors present a systematic and incisive study of five interrelated areas: an exploration of the causes of the slowdown in agricultural output growth since the mid-1980s; the role of both output and input markets in agricultural development; the problem of excess labor in agriculture; the potential of rural industrial development to absorb excess labor; and financial flows - taxation, government expenditure, rural household savings, and investment - in relation to agricultural growth. The authors conclude with suggestions for fundamental changes in China's agricultural policy that are needed if the nation is to feed its 1.2 billion people.