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Web of Proceedings - Francis Academic Press
Web of Proceedings - Francis Academic Press

Innovation of Interest Linking Mechanism to Promote Vitalization of Rural Areas

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DOI: 10.25236/iwass.2019.291

Author(s)

Chen Yanyu, Liu Jiaxin

Corresponding Author

Chen Yanyu

Abstract

The project was launched in the summer of 2018. I conducted questionnaires and interviews with many farmer cooperatives in Jiangxi Province, which laid the foundation for the writing of the survey report.Based on these data and related literature, the study finds that the interest linkage mechanism of farmers'cooperatives in Jiangxi Province is not perfect. The main manifestations are as follows: the cooperative's interest creation ability is weak, more than 90% of the cooperative's profit margin is below 10%; the incentive effect of the cooperative's interest is not obvious, and the income of its members increases slowly after joining the cooperative; the distribution of the cooperative's interests is unreasonable, and only 37% of the cooperatives implement the patronage return distribution mechanism; and the protection of cooperative's interests is not sound. Over 70% of cooperatives and farmers are not standardized in their interests.Does the above-mentioned interest linkage mechanism affect the performance of cooperatives? How to construct a reasonable and effective interest linkage mechanism to improve the performance of cooperatives? With these problems, team members conduct in-depth research to find out the influencing factors of the cooperative interest linkage mechanism, and use the ordered probability model to measure, and then find that earnings distribution, ownership structure, risk protection and other factors have a significant impact on the performance of the cooperative interest linkage mechanism. On this basis, we constructed a "five-in-one" interest-linking model of production and marketing, stock, credit, wind control and poverty alleviation cooperation to form a "benefit-sharing and risk-sharing" value chain for all participants.

Keywords

Interest link;farmers;farmers' cooperative;