Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation

► We estimate the treatment effects of agricultural cooperatives and extension services. ► Publicly funded extension services have a modest effect on farm income. ► The effect of the agricultural cooperative is highly heterogeneous in favor of smallholders. ► Nevertheless, most of them are shunned out of the contract. ► This poses serious challenges to pro-poor agricultural growth in China.