Abstract: Based on a survey of 296 peanut farms in Zoucheng, Shandong, the effect of nearby farms and operation scales on grower's pesticide application was studied. It was found that (1) a farmer's use of pesticides was affected by their neighbors' practices-lower dosages of pesticides tended to be adopted for the application when the others did so; (2) technical training and dissemination helped spread a similar practice among all farmers in the area resulting in a reduction on the applied dosage and increase on the use of organic pesticides; and (3) large-scale farm operations effectively showcased their neighbors the green approach for the neighboring growers to emulate. Therefore, by implementing measures, such as establishment of demonstration units and/or enhancement on extension service, government agencies could stimulate the development of a sustainable agriculture for a farming area.