We use the agricultural firms of the “Special Zone for Enterprises of Taiwan Farmers” in Zhangpu county in Fujian province as our “natural experiment” for studying the effect on peasant incomes of outsider-controlled capital investments in agriculture. This article uses township level data for the years 2000 to 2010, using a “cross-sectional measuring model” to examine the effects of outside capital in agriculture on peasant incomes. Our finding is that outside capital have not raised local peasant incomes. This is because control of the capital has been in the hands of the outsiders, resulting in control of labor by capital. And, because of the differences in the nature of agricultural as opposed to commercial-industrial production and management, there has been little benefit in incomes for agricultural labor.