Abstract: Abstract: This paper based on Pluralistic Operation and the relevant theories of corporate diversification, use the panel data from the annual reports of Chinese agriculture listed companies from 2003 to 2006, analyze the relationship between diversification and corporate performance through model of multivariate regression and method of calculating total factor productivity by the flexible output of capital and labor. The results show that the overall business diversification level and business performance has a negative correlation,and moreover, the relationship between the overall business diversification and production efficiency was changed in the opposite direction for the agricultural listed companies. In contrast with the static data to analyze, production efficiency of horizontal diversification is more than vertical diversification; In terms of development trend, engaging in horizontal diversification will reduce production efficiency, and maintaining an appropriate degree of vertical diversification will promote production efficiency.