The household responsibility system (simplified Chinese: 家庭联产承包责任制; traditional Chinese: 家庭聯產承包責任制; pinyin: jiātíng liánchǎn chéngbāo zérènzhì), or contract responsibility system, was a practice in China, first adopted in agriculture in 1979 and officially established in 1982, by which households are held responsible for the profits and losses of an enterprise. In agricultural production, farmers as a relatively independent economic entity contract the collective land and other large-scale means of production and carry out production and management independently according to the contract. Except for a small part of its operating income, which is paid to the collective and state taxes following the contract, all income is attributed to farmers.