Abstract: To explore the optimization of fertilization strategy selection and production cost in a "company+farmer" agricultural supply chain, decision models for companies and farmers based on the implementation of precision fertilization technology are established. The performance of supply chains under two types of decentralized and centralized decision-making is compared, while the impact of parameter sensitivity and the feasibility of contracts are analyzed through simulation. Results show that precision fertilization can reduce production cost, and rational fertilization strategies can improve the economic benefits for both parties. With decentralized decision-making, the economic benefits of the company-borne precision fertilization cost model (R) are lower than the farmer-borne model (F), for the latter can better produce the cost-saving and efficiency-enhancing effects of precision fertilization. By adopting "profit-sharing-cost-sharing" (TR) and "two-part tariff" (TF) contracts, the coordination of the company model and farmer model supply chains is achieved, respectively. After coordination, the production cost of farmers decreases, and the profits of the supply chain stakeholders are improved.

Key words: contract farming, precise fertilization strategy, cooperation mechanism, supply chain coordination