Research On Risk Of The Specialized Farmers Cooperatives

The 18th National Congress emphasizes the importance of creating the agricultural management system. The agricultural management system which is the strategic choice of developing Chinese characteristic modernizing agriculture contributes to the modernization of agriculture and the increase of farmers'income. As one of the new agricultural business entities, the specialized farmers cooperatives play an important role in many aspects, such as:organizing the farmers, improving the land utilization efficiency, promoting the agricultural mechanization, realizing agriculture scale economies and improving the living standard of farmers. Since the Specialized Farmers Cooperative Law published in 2007, specialized farmers cooperatives have been developing rapidly. Under this circumstance, it is very important of specialized farmers cooperatives to analyze its risk and take effective measures to control the risks for the better development.This paper first introduces the definition and the basic situation of the specialized farmers cooperatives in China. The number of specialized farmers cooperatives is increasing rapidly. Specialized farmers cooperatives' functions and business scope are getting more and more. However, with the vigorous development of specialized farmers cooperatives, there are many uncertainties which may cause loss to specialized farmers cooperatives. The paper identifies and analyzes the risk of specialized farmers cooperatives from the internal and external environment based on the SWOT method. The risks are divided into three types:the first type is the internal risks which include policy and supervision risk, financial risk, technology risk, market risk and nature risk.The second type is the external risks which include financial risk, mechanism of governance risk, the quality of leader risk, human resources risk and production risk. The third type is the risks coursed by the lack of coordination between the external environment and internal resources. Finally, on the basis of the studies of LuAn farmer professional cooperatives, the paper analyzes the experience and shortages of preventing risk of the LuAn farmer professional cooperatives. Also, some suggestions of risk prevention of farmer professional cooperative are presented in the paper from the view of government macro restructuring and the self-improvement of farmer professional cooperative.