Abstract: Through literature review and field investigations, the formation mechanism of the relationship network affecting the local operation service market of agricultural machinery was summarized under the local society. Taking the rice harvesting process as an example, the relational network in the agricultural machinery local operation services market was analyzed by using the survey data of 139 rice growers and 33 farm machinery operation services suppliers in Jianli city and Jiangling county, Hubei Province. The study found that the relationship network mainly affected the formation of localized agricultural machinery operation service market through four mechanisms of conflict avoidance, risk aversion, reducing transaction costs and maintaining social relations, and farmers were more inclined to choose agricultural machinery operators who were acquaintances. The cumulative work area of the farmer in his group was larger than that in other groups in the village, other villages and towns and areas outside the county. Choosing acquaintances to work through the network was beneficial to both farmers and farm mechanics. Finally, some suggestions on establishing a localized agricultural machinery service organization, integrating the needs of farmers and improving market efficiency were put forward.

Key words: relational network, farm machinery operation, local service market, rice harvesting, Jianli city, Jiangling county