There has been a wide debate on the influence of capital to the countryside on “three rural issues” has caused widespread controversy,which further generates two value orientations,market efficiency and small farmer rationality.An investigation into Y County in Hubei Province revealed that the industrial and commercial capital had a growth effect,differentiation effect,rejection effect,and fragmentation effect.The mode of agricultural industrialization led by grass-roots governments,industrial and commercial capital bodies,and large households deprived average farmers’ chances to participate in economic activities,which might pose many risks to the stability of rural politics and governance.These effects could be mainly attributed to the fact that the grass-roots governments follow the logic of “supporting the big and strong agricultural company” when allocating policy resources.The economic logic of the “strong distributiveness” of the main body of industrial and commercial capital is exclusive to ordinary farmers and the lack of resource endowment is common.Farmers are sticking to the social logic of “small farmer rationality”.The result is the occurrence of imbalance of the benefit linkage mechanism between ordinary farmer households and the main body of industrial and commercial capital.Under the background of the new era of rural revitalization and the integration of urban and rural development,it is necessary to use industrial and commercial capital to promote the transformation of agricultural industrialization and also give priority to the endogenous development of the small-scale peasant economy to fully protect the reservoir function of the rural society.