Investigation Into The Readiness Of Agriculturists To Join Cooperatives And The Effect Of Cooperatives On Their Income

Since the reform and opening up,China’s rural land reform has been greatly enhanced by the implementation of a household contract responsibility system.This system has enabled rapid growth in the rural social economy.As non-agricultural industries progress,the rural labor force increasingly opts to switch to them,leading to varying levels of part-time employment and income for farmers.After the supply and marketing cooperatives withdraw from the agricultural product purchase and marketing market,the traditional chain connecting individual farmers and the market will break down.At this time,an economic organization that reorganizes the decentralized individual farmers is needed,and the farmer professional cooperatives also emerge as the times require.Under the framework of the traditional cooperative system before the reform,the relative homogeneity of the member farmers allows most of the member farmers to participate in the operation of the cooperative as customers and owners at the same time.The cooperative has a strong attraction and income increase effect for most farmers.However,from the development practice of professional cooperatives in China,when the differentiation of cooperative members has become the normal state of cooperative development,this makes the attraction of cooperatives to farmers and the effect of income increase have changed significantly.Many farmers will choose not to join or quit the cooperative because of their dissatisfaction with the operation mechanism of the cooperative or their different resources,and turn to non-agricultural industries.As the main body of new agricultural management and an important force to realize rural revitalization,cooperatives are an important carrier to promote the transformation and upgrading of agricultural management.Cooperatives are oriented to and serve farmers.How to enrich and improve the operation mechanism of cooperatives to increase their attraction to farmers,and how to better play the role of cooperatives in increasing farmers’ income,has become an urgent "three rural issues".Analyzing the main factors that influence farmers’ decision to join the cooperative,and the effect this will have on family income,is of great importance from a micro perspective.Enthusiasm for the production of local farmers can be invigorated,sustainable income augmented,agricultural industry support policies augmented,and the efficiency of the local agricultural industry enhanced.This paper’s empirical research is split into two sections.To begin,a probit model is created to evaluate the elements that shape farmers’ involvement in cooperative decision-making;Subsequently,an endogenous transformation regression model is created to eradicate endogenous and sample selection bias,and to assess the effect of farmers’involvement in cooperatives on household income.This paper has arrived at the following conclusions through empirical analysis:(1)Endogeneity experiments indicate that cooperative decision-making is an intrinsic explanatory variable;The regression analysis results of the endogenous transformation model show that there is a positive selection bias in the model.(2)By conducting endogeneity experiments and overcoming sample selection bias,participating in cooperatives can significantly improve the household income level of farmers.Joining a cooperative organization can help farmers and families earn more income,and the increase is more evident in those who have served as village cadres and have a large scale of land planting.(3)Farmers have rational decision-making.Joining a cooperative can increase the income of already joined households,while not joining a cooperative can also increase the income of non joined households.Both options have a positive impact on their respective household income.Government departments should fully leverage their organizational functions,strengthen the daily operation of cooperatives,and encourage farmers to improve their compulsory education,fully understand their own advantages and disadvantages,and enhance agricultural related skills,in order to improve the development of agriculture.