Abstract:Based on survey data from 286 apple growers’ participating in contract farming in Shandong province,this paper analyzes the impact of transaction costs and trusting relationship on farmer’s compliance behavior.The result shows that actual delivery of fruits to companies is less than half,such proportion of the farmers is only 46.1%,which suggests that non-compliance is more prominent.The transaction distance and transaction settlement method have obvious impact on farmer’s compliance behavior,that is,under the conditions of distant transaction location and delayed transaction settlement,farmers have no interest in compliance,while trusting relationship in the transaction has significant impact on farmers’ compliance.With the higher trust in the leading enterprises,the farmers will have more positive attitudes towards compliance.In addition,education level of head of household,distance from the road and price premium in the contract will,to some degree,influence farmers’ compliance.