Abstract:The household output-related contract responsibility system has once greatly improved China's agricultural productive forces. However, it owns itself disadvantages in that it hinders, to a certain extent, further development of agricultural productivity. Taking the city of Xichang, Sichuan province as an example, which largely represents the overall situation in rural areas of western China, this article made a multifold and thorough analysis of reasons why productivity has been shackled. On a basis of investigation and analysis of this problem, the author put forward a tentative concept: a rural collective production mode in a form of corporation with shareholders. This production mode can save a considerable amount of labour by liberating rural redundant labour from farmlands, finance itself to implement agricultural mechanization, and produce domino effect so as to enhance agricultural productive forces.