The Positioning of Organization Capability for Farmers' Cooperatives:An Economic Explanation

Farmers' Cooperatives are playing an increasingly important role in increasing farmers' income and transformation in agricultural development, etc. To give full play of the organizational capacity of cooperatives, the organizational capacity of cooperatives should be explicitly targeted, firstly. In this paper, based on the theory of clubs, interest groups and property rights, we make a reasonable position from an economic perspective on the organizational capacity of cooperatives. Wherein, the positioning of member comprises meeting the different needs of the members, solving the crowding effect and reducing heterogeneity members; function positioning includes getting support from national, market intermediaries and acting as a tool for communication; property positioning includes negative externalities, internal incentive effect and a clear benefit allocation.