The impact of heterogeneous cooperatives on family farm income growth: evidence from China

Joining cooperatives is a key strategy for family farms, yet the effect of cooperative characteristics on farm income remains underexplored. Using microdata from 769 plantation family farms and an endogenous switching regression model, this study examines how cooperative features influence farm income growth. Results indicate that cooperatives with larger memberships, broader business scopes, weaker farm-cooperative ties, and lower industrial integration provide fewer income benefits. To maximize income, policymakers should facilitate farm access to cooperatives, while cooperatives must strategically optimize membership size, prioritize core services, strengthen agricultural linkages, and enhance industrial integration – avoiding excessive expansion or non-core diversification.