Development Of Professional Farmer Cooperative In Organizing Cost Perspective

Since the full implementation of the household contract system, the economy in rural China has gained great development, and farmer has been making provocative moves toward "decentralization". At the same time, the appealing for cooperation, both from the government and academics, or even farmers themselves, has never stopped, although few of related practice actions succeed. However, the farmer cooperative has been proved to be an efficient form of organization by a lot of successful practice abroad. Unlike western contractual society, China is "favor" society as the "personal favor" are extremely important, especially in rural areas. In the practice of China’s farmer cooperative, the use of "favor" is the major characteristic, which exactly leads China’s famer cooperative to the situation of massive while poor quality.As a form of organization, the existence of farmer cooperative depends on the relationship between the cost and benefits of organizing. In the practice of china’s farmer cooperative, both the "favor" and "institutions" are the organization forms of farmer cooperative, which means that the cost of organizing is determined by the cost of "favor" and "institutions". At the founding period of the farmer cooperative, there is lots of "favor" in the community, so the price of it is relatively low, the proper use of "favor" is beneficial to the establishment and development of the farmer cooperative. However, with the reduce stock of "favor", the price gradually increased, the farmer cooperative will eventually come to collapse or alienation once the cooperative benefits cannot cover the organizing cost of "favor" and "institutions".With a lot of formulas be used to explain the relationship between concepts, research about social fact would be more successes. Although it would lose part of connotation of concept and simplify relationship between the concepts, this way is worthy to be research continuity.Problems in rural china, including low per capita land ownership and the outflow of talent, limit the efficiency of the farmer cooperative, resulting in the failure of covering the "favor cost" even before "institutions" actions initiated, which eventually lead to the collapse or alienation of the farmer cooperative.