Farmers’ behaviors and performance in cooperatives in Jilin Province of China: A case study

Agricultural cooperatives began to emerge in China since the 1990s, as a new form of agricultural production that better handles challenges brought by market shifts and globalization. Little research has been done to understand factors that decide farmers’ behaviors and performance in cooperatives in China. Using large sample data from Jilin Province, this paper examines the decision-making mechanism of farmers in joining cooperatives and analyzes farmers’ awareness of cooperatives and relative laws, willingness to participate, real behaviors and performance in cooperatives. Empirical results show that farmers’ education level, the variety of agricultural products, planting area, future planting plan, sales difficulties, low prices of agricultural products, labor shortage, agricultural production costs and risks are the most influential factors in deciding what behaviors to take, while planting area, agricultural production costs, the variety of agricultural products and lack of agricultural insurance are the most influential factors deciding the final performance achieved. This paper concludes with policy suggestions, such as strengthening publicity of cooperatives, standardizing internal management of cooperatives, and enhancing the quality of services provided by cooperatives.

► Decision-making mechanism of farmers’ attendance in cooperatives is examined.
► Determinants include education, planting area, sales difficulties and so on.
► Enhanced publicity, management and services are suggested to promote cooperatives.