This paper defines the characteristics of the rural economy and structural characteristics of principal - agent relationships in it base on dividing complete property rights of basic agricultural means of production. And then, construct a principal - agent theory mode. We test this model using China's rural reform in 60 years. We find that: China's rural economy developing is the process of agency relationships and incentive mechanisms improving from the Cooperativeness to the Household Contract Responsibility. The agency relationships and i...