What are the reasons why large farms in China always fail?

Speaking of agriculture, one cannot help but mention the United States. The United States is the benchmark of agriculture, the United States is the lighthouse of humanity, the United States is the pearl of the Earth. American agriculture is large farms. Well then, many Chinese people think that America's large-farm agriculture is the real agriculture; America's large farms represent the direction of agricultural development. And so, from the state to enterprises, many large organizations, in the process of investing in agriculture, have one after another chosen the large-farm model. But what was the result? Successful cases are rarely seen.

How strange. The prescription from the lighthouse country, when brought to our land, why does it not work? Is it that the "constitution" issue that public intellectuals always harp on about has worked its magic again? To get this question straight, we must first understand what agriculture on this Earth actually looks like.

In many people's understanding of agriculture, they always feel that agriculture is primitive and lowly, and always feel that this is fundamentally a "smallholder economy." If that is how you think, I can only tell you, you are exactly right. In economics, agriculture has another identity - the only industry, on a global scale, that takes the family as its smallest unit of production, and for which no country has been seen to successfully change this state on a large scale.

In other words, agriculture all over the world produces with the family as the unit of production; the size of the farm does not matter, whether it is 1 mu of land or 10,000 mu of land, the smallest unit of production is the family. As long as this is not done, whether it is a large farm set up by a big company or a large farm set up by the state, it will fail - there may be one exception, which is China's various agricultural reclamation farms.

Of course you know, this is actually a militarized organization, which can to a certain extent operate in violation of economic laws, and cannot be counted. Our China has made repeated attempts to break through on this issue, and whether it was the people's communes or anything else, all without exception ended in crushing defeat. Even today's agricultural reclamation farms are not doing comfortably.

So, what exactly are the factors that cause agriculture to be able to take only the family as its smallest unit of production? In other words, why does the family doing agriculture yield a higher return on investment than a company doing agriculture?

What is the essence of running an enterprise, running a company, or even all industrial and economic activities? It is actually very simple, and can be made clear in one sentence: integrating intangible assets into tangible assets, so that the tangible assets appreciate. The physics logic here is like this: matter in the universe has three forms of existence - mass, energy, and information. The three can transform into one another. For human economic activity, the most fundamental logic is to inject energy and information into mass, so that the mass rises in value. For example, building a house is taking a pile of scattered matter - bricks, injecting energy and information - stacking them in a certain way, thereby achieving an upgrade of matter - the bricks become a house. You can all go and think about whether other industries are like this; in fact, there is no exception. Agriculture is the same.