Farmland property rights have become increasingly strengthened and integrated,and farmland circulation is also normalizing.Farmland circulation,which is a symbol of the change of the configuration structure of peasant households,may also affect the transformation and upgrading of agriculture.The optimization of agricultural structure may also have a financial impact:it may enhance the access to credit of farmers and change its financing channels.Based on rural survey data of farmers in Guangdong and Jiangxi provinces,this paper makes an empirical analysis.The result shows that farmland circulation promotes agricultural transformation and upgrading from several aspects.First,the operation pattern changes from fragmentation to scale; second,the purpose of production transforms from selfsufficiency into commodity production as well as the planting species varying from consumptionbased agricultural products to profitoriented economic crops.In addition,the substitution of capital for labor is also accelerated,thus the access to credit of farmers has been increased on demand side,and promote farmers’ choice of financing channels more inclined to formal financial institutions.