China’s agricultural industry kept in good situation in 2007. The most important character of agriculture situation is the change of supply and demand structure. The demand of agricultural products increased rapidly；meanwhile，it is obvious that the supply of agricultural products is subject to environmental resource. The possibility of changing relationship of supply and demand for some agricultural products is increasing. The international trade of agricultural products，which ranked sixth worldly in total amount，influenced the supply and demand relationship of agricultural lands and products. Under this situation，we need to balance the benefit of producers and customers，resume and improve the productivity of agricultural products，prevent the agricultural products price from decreasing considerably，protect the productivity of small-scale farming，promote the systematization of peasants，and focus on farmland protection so that to ensure the agricultural productivity and the effective supply of agricultural products.