To solve the practical problems of small farmers participation in agricultural product quality traceability system and their low participation willingness, this paper proposes a farmer household participation incentive model based on cost sharing strategy, and constructs a bivariate market demand function with consumer traceability preference and price sensitivity. It analyzes the income, traceability level and market price of agricultural products under the two conditions of independent production of farmers and cooperative production of agricultural enterprises, and examines the feasibility of cost sharing strategy. The study shows that when the costsharing cost ratio is in a reasonable range, the costsharing strategy canincrease farmersincome while reducing their initial input, and help to improve the traceability level of agricultural products and achieve high quality and good prices of agricultural products. The retrospective preference of consumers is stronger than the price sensitivity of the traceability level of agricultural products, and the degree of price sensitivity has a stronger effect on the market price of agricultural products and the farmersincome.