The Existing Problems In The Development Of Farmer Cooperatives And Countermeasures

With full respect and protection of farmers' land contract management right, our country's Farmer Professional Cooperatives have set up on the basis of highly decentralized household contracting. Farmer Cooperative is an innovative way of rural system of land contract and operation; it promotes agriculture to develop in the direction of scale operation. It is increasingly become an important organizational carrier, which helps to exploit the road to agricultural modernization of China. Our country's Farmer Professional Cooperatives have entered a new stage of development and gained remarkable achievements with the promulgation and implementation of "The Law of Farmer Professional Cooperative". But several problems are still remained, and have restricted the development of Farmer Professional Cooperatives. Government should take measures to support and guide the sustainable development of Farmer Professional Cooperatives.This paper analyzes the concept, characteristics, and principles of Farmer Professional Cooperatives, on the basis of research at home and abroad. Through using the theory of institutional change, this paper seeks to describe the objectivity and necessity of Farmer Professional Cooperatives. From the viewpoint of the transaction cost theory, this paper seeks to study the important role of Farmer Cooperatives in improving the market competitiveness of farmers. This paper also analyzes the free-rider problem resulted from the development of Farmer Professional Cooperatives from the perspective of public goods theory. We should draw on the experience of foreign Cooperatives in this aspect:strengthen cooperation among Farmer Cooperatives, improve laws and regulations and build cooperative education system. By analyzing the overview of the development of the Farmer Professional Cooperatives in China, as well as the research of the Farmer Professional Cooperatives in Zouping County, that the development of Farmer Professional Cooperatives in China is facing some problems, including:the overall number and size of Farmer Professional Cooperatives is still smaller, Farmer Professional Cooperatives is lack of market competitiveness, the development of Farmer Professional Cooperatives is also lack of human resources and funds, some drawbacks exist in the internal management, laws and regulations on Farmer Professional Cooperatives is not perfect and governmental behavior on Farmer Professional Cooperatives exists biases. Finally, this paper analyzes on the causes of problems, and points out some corresponding countermeasures, including strengthen government supports and Cooperative self construction. The government should clear functions, reinforce propagation, increase talent, capital investment, optimize external environment and so on. Cooperatives should enhance self construction through improving internal management, widening service field, exploiting characteristic brand, opening more financing channels and so on.