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Policy support and emerging farmer professional cooperatives in rural China

Author

Listed:
  • Deng, Hengshan
  • Huang, Jikun
  • Xu, Zhigang
  • Rozelle, Scott

Abstract

Most farms in China are small and vulnerable to the forces of powerful markets. Recognizing the challenges of small farming, China has promoted farmer professional cooperatives (FPCs) during the past two decades. The overall goal of this study is to analyze the emergence and current status of FPCs, the nature of recent policy initiatives and the role of government policies that have played in promoting recent trends. Based on a unique panel data from two rounds of national representative surveys of 380 villages in 2003 and 2009, this paper shows that while there was nearly no FPC in late 1990s, there were FPCs in 21% of China's villages and these FPCs provided services to about 24Â million farm households in 2008. The determinants of FPC analysis show that the role of the government is of primary importance. Policy support measures and, most likely, the new legal setting in China after the passage of the 2006 FPC law, account for most of the growth of FPCs.

Suggested Citation

  • Deng, Hengshan & Huang, Jikun & Xu, Zhigang & Rozelle, Scott, 2010. "Policy support and emerging farmer professional cooperatives in rural China," China Economic Review, Elsevier, vol. 21(4), pages 495-507, December.
  • Handle: RePEc:eee:chieco:v:21:y:2010:i:4:p:495-507
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    References listed on IDEAS

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    Cited by:

    1. Liu, H. & Deng, H. & Xu, Z. & Lu, W., 2018. "Emerging Agricultural Cooperatives and The Structural Change of Crop Production in China," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277324, International Association of Agricultural Economists.
    2. Bijman, Jos & Hu, Dinghuan, 2011. "The Rise of New Farmer Cooperatives in China: Evidence from Hubei Province," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 39(2), pages 1-15.
    3. Ito, Junichi & Bao, Zongshun & Su, Qun, 2012. "Distributional effects of agricultural cooperatives in China: Exclusion of smallholders and potential gains on participation," Food Policy, Elsevier, vol. 37(6), pages 700-709.
    4. Ma, Wanglin & Abdulai, Awudu, 2016. "Does cooperative membership improve household welfare? Evidence from apple farmers in China," Food Policy, Elsevier, vol. 58(C), pages 94-102.
    5. Nikulin, Alexander (Никулин, Александр) & Trotsuk, Irina (Троцук, Ирина) & Kurakin, Alexander (Куракин, Александр), 2018. "Agrarian Transformation of Agricultural Enterprises and Regions of the BRICS and EU Countries: Comparative Analysis
      [Аграрная Трансформация Сельскохозяйственных Предприятий И Регионов Стран Брикс И
      ," Working Papers 031824, Russian Presidential Academy of National Economy and Public Administration.
    6. repec:gam:jsusta:v:10:y:2018:i:9:p:3075-:d:166448 is not listed on IDEAS
    7. repec:gam:jsusta:v:10:y:2018:i:11:p:3932-:d:179067 is not listed on IDEAS
    8. Hoken, Hisatoshi & Su, Qun, 2015. "Measuring the effect of agricultural cooperatives on household income using PSM-DID : a case study of a rice-producing cooperative in China," IDE Discussion Papers 539, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    9. repec:eee:jfpoli:v:74:y:2018:i:c:p:53-64 is not listed on IDEAS
    10. repec:eee:jfpoli:v:73:y:2017:i:c:p:19-33 is not listed on IDEAS
    11. Bijman, Jos & Hu, Dinghuan, 2011. "The Rise of New Farmer Cooperatives in China; Evidence from Hubei Province," 2011 International Congress, August 30-September 2, 2011, Zurich, Switzerland 114252, European Association of Agricultural Economists.
    12. Michelson, Hope & Boucher, Stephen R. & Bai, Junfei & Jia, Xiangping & Huang, Jikun & Chen, Xinzhe, 2013. "Supermarket Supply Chains with Chinese Characteristics: The Case of Walmart's Direct Farms," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 150441, Agricultural and Applied Economics Association.
    13. repec:gam:jsusta:v:9:y:2017:i:7:p:1175-:d:103761 is not listed on IDEAS
    14. Yang, Huan & Klerkx, Laurens & Leeuwis, Cees, 2014. "Functions and limitations of farmer cooperatives as innovation intermediaries: Findings from China," Agricultural Systems, Elsevier, vol. 127(C), pages 115-125.
    15. Hoken, Hisatoshi, 2016. "Participation in farmer's cooperatives and its effects on agricultural incomes : evidence from vegetable-producing areas in China," IDE Discussion Papers 578, Institute of Developing Economies, Japan External Trade Organization(JETRO).
    16. repec:gam:jsusta:v:11:y:2019:i:19:p:5445-:d:272585 is not listed on IDEAS
    17. Sultan, Tursinbek & Wolz, Axel, 2012. "Agricultural Cooperative Development in China and Vietnam since Decollectivization: A Multi-Stakeholder Approach," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 40(2), pages 1-21.
    18. Ma, Meilin & Zhu, Heng, 2014. "Decision Making Among Heterogeneous Members: A Study on Economic Efficiency under the Centralized Structure of Chinese Farmer Professional Cooperatives," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 168366, Agricultural and Applied Economics Association.
    19. Benoit Daviron & Mathilde Douillet, 2013. "Major players of the international food trade and the world food security," FOODSECURE Working papers 12, LEI Wageningen UR.
    20. repec:bla:agecon:v:49:y:2018:i:3:p:363-380 is not listed on IDEAS

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    Policy Farmer Cooperatives China;

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