Farmers' Professional Cooperative Economic Organization

Since 1978, people's community system has been abolished and households responsibility system established. This stimulated the farmers' productivity enormously, however, with the development of market economy and the commercialization of agricultural product enhanced, the cost that the peasant household disperses enters the market is high. The contradiction between the social market and atomic individual need to be solved. In fierce competition , how does farmers to cooperate with huge industry and share rich profit after processing primary product.In this background, farmer cooperation organizations have arised quietly in China. It's the best form which help farmers enter the market. This stabilized the households responsibility system and keep scale economy. It lowered the cost of transaction and reduced the opportunity behavior. The dissertation researches into the farmer cooperative organization in Province Henan with the analytical means of new institutional economics. It hopes to promote the development of the farmer cooperative. It analyzes and explores the institutional characteristics, the property rights arrangements, the governance structure and influence factor. The article aims to answer the problem why does the farmer organize and how to forms efficiently.There are 6 components forming the dissertation.First, the chapter One "Introduction" provides the research objective, the research significances and the research methods, and expatiates the study achievements on cooperatives in and out the country.And then the chapter Two, by definition and the principle of organization , try to study the essential nature of cooperatives. Later chapter Three interpret the necessity of cooperative's existence and seek to theoretical supports. It explains by the farm theory and the contract theory. After that , the forth part from three dimensions that include the property arrangements of property rights , the governance structure and the income assigns, try to explore into the cooperatives. Subsequently the chapter Five , according to the cases of Province Henan, try to analyze the factor to influence development of cooperative. Finally , the last chapter hope to provide suggestion to promote healthy development.