Abstract: Agricultural large-scale operation is an important way to achieve agricultural modernization in China.However,due to the supervision of employed labor force,the large-scale operators are often in a dilemma when choosing employment or outsourcing operations in the process of large-scale production.When the supervision predicament is inevitable and large-scale operation is imperative,operators can consider the supervision cost of employed labor as a part of their operating costs,and select the scope of agricultural scale-production by comparing the incentive contributions of cost innovation and quality innovation.Under the dual objective task of cost innovation and quality innovation,production units are affected by the degree of production standardization of the crops.When production is in a high-level standardization,operators have a preference for cost innovation,and their production presents a scale effect.On the contrary,operators are more willing to pursue quality innovation and narrow the scope of production to smaller production units,such as farmers or households.

Key words: production standardization, agricultural scale-production, supervision predicament, quality innovation, cost innovation