As the first step of the rural economic system reform, the "household contract responsibility system" has broken through the old system of "one household dominates" and "one pot of rice". Moreover, with the implementation of the contract system, individual contributions are linked to income, farmers' enthusiasm for production is greatly improved, and rural productivity is liberated. Farmers can sell surplus grain, form a free market, greatly increase the cash in their hands and greatly improve the rural economy. From 1978 to 1985, grain growth reached the highest level since the founding of the People's Republic of China. In addition to the public grain that farmers need to pay, they have complete autonomy in growing grain. Farmers can choose cash crops with higher income, so that their income will increase, and some farmers will become ten thousand yuan households. A new phenomenon has appeared in the countryside.

The widespread implementation of "household contract system" has created conditions for the development of rural commodity economy and promoted the development of traditional agricultural economy to specialization, commercialization and socialization.