Abstract: The most important link in the chain of agricultural industrialization is its operation entities, i.e. leading enterprises of agriculture which connect markets and peasants. Mechanism of this connection is impacting the division of income between enterprises and peasants, and then the industrialization of agriculture as well as the income increase of peasants. Objects of this study are agricultural enterprises in Nanjing, and the study is made on the connection mechanism between leading agricultural enterprises and peasants, especially on what impact it is making on peasants and how can it increase income of peasants. Theoretical and practical basis are supposed to be provided to relevant government departments on policy decision of pushing leading agricultural enterprises to increase income of peasants.