Abstract: Modern peasant households in Taiwan were formed through the process of the local government policy changes, in which the farmland, capital, labor and other factors are clustering to core farmers, as well as permeability factors (such as agriculture technology) and combination factors(such as management information) were concentrated. The formation of modern peasant households needs varieties of agricultural production factors to be mutual coordination and unification. The developing of modern peasant household in mainland should foster innovation concept and impel production factors gather to farmers by institutional changes