Abstract: Land circulation is a hot topic in China. Farmland circulation is directly influenced by supply and demand. The paper analyzed the farmland circulation and its policy from the perspective of business requirements. The main research conclusion is that land circulation becomes the premise condition of scale management. Among them, the farmland circulation costs influence farmland demand, thus influence farmland scale, farmers' income increasing, agricultural modernization and urbanization. China is undergoing early transformation of traditional agriculture, the market mechanism is not sound, farmland conversion cost is greatly affected by policy factors. Finally, based on the perspective of farmland business demand, the authors put forward the rural land circulation policy giving consideration to both‘fairness’and‘efficiency’according to Chinese situation.