The deepening of specialization in agriculture promoted the formation and development of the agricultural industrial chain,on the one hand it promoted the income increase of division of labor, on the other hand it increased the transaction frequency and transaction costs of the each link in agricultural industrial chain. Facing the dilemma of vertical division in agricultural industrial chain, research and use of effective institutional arrangements or institutional structure, the effective connection and relationship integration of the farmers and leading enterprises in the industrial chain have important practical significance to increase the stability of agricultural industry chain and improve its efficiency of vertical labor division. From the perspective of agricultural division and institutional economics, this article analyzes the institutional types, institutional properties, institutional choice and the dynamic institutional evolution of the of the vertical labor division of the agricultural industry chain.