Agricultural production cooperatives and agricultural development

Abstract

Agricultural production cooperatives used to be the “stepchild” of the cooperative movement. Although they stem from a similar long tradition of agricultural service cooperatives, researchers such as Oppenheimer (1896) and Schiller (1969) observed early on that they were not attractive for farmers in villages characterised by family agriculture. In general, it was argued that they were not competitive at all with family farms, but also not corporate farms, thus having no role in agricultural development. Historically, agricultural production cooperatives were formed under specific conditions only. Most prominent were collective farms under the socialist regimes, which were often labelled “agricultural production cooperatives”, although these were by no means of a voluntary nature. However, in recent years, agricultural production cooperatives have been observed in villages characterised by family agriculture. In Chongzhou County (Sichuan Province, China) they cover more than half of the total utilized agricultural area. This research analyses the conditions under which farmers voluntarily join such production cooperatives and how they assess their membership in them. We suggest that agricultural production cooperatives have a role to play in agricultural development after all.