The most difficult issues in China are those of rural farmers, and the greatest trouble of farmers is that of land. The goal of restructuring in China's rural land system has been a system of collective ownership, but its inner and outer conditions have never previously existed. China's system of collective land ownership is a paradigm established by continuous practice. Having progressed through stages such as Land Reform, the Agriculture Corporative Movement, Rural People's Communes, and the Household Responsibility System, is still in a constant state of evolution and exploration. This article approaches the issue from the perspective of New Institutional Economics and offers three propositions about Agricultural Reform through historical facts while exploring the processes of variation and adaptation in China's rural land system, analyzing the costs and benefits of system arrangements, and assessing the direction and observational framework for the system's future adaptation.