Abstract: The transaction cost not only exists， but also influences the farmland circulation in the process of farmland transfer. Transfer dispute is a dominance index to observe the transaction cost. The higher transaction cost， the lower the farmland changing market. Using， municipalities and autonomous regions the farmland transfer market levels from 2009 to 2013 as date， empirical research was conducted transaction cost. The results showed that the transaction cost had effects on farmland transfer market level， the higher the transaction cost， the lower the farmland transfer market. On the contrary， the lower the transaction cost， the higher the farmland transfer market level.