Abstract:Based on the samples of annual data between 1950-2010,this paper makes an empirical analysis on price linkage between the production and retail of agricultural products in China by using generalized impulse response function method and the variance decomposition method based on VAR model. The result shows that agricultural products prices of production and retail remains a similar fluctuation trend,the two-way transfer between the two sides are smooth .Meanwhile,retail price of agricultural products plays a more significant role in price fluctuation of agricultural production and retail market,the linkage between agricultural production and retail price shows the characteristics of "non-equilibrium" or "one-way".Therefore,this paper proposes that it is necessary to build a modern circulation system of agricultural products,improve degree of farmers' organization,reduce intermediate circulation and develop agricultural zero docking mode.