What's the difference between a family farm and a cooperative? How do you know which one is right for you?

Family farm: This is the concept put forward by the first central document in 2013, mainly refers to the production organization with family members as the main labor force, the management of land has a certain scale, and agricultural income as the main source of income for the family. This is the basic characteristics of family farms, to put it simply, family farms are farmers with a certain land scale, usually run their own, and can temporarily hire some people to help during the busy season.

Cooperatives: Farmers' specialized cooperatives are mutual economic organizations regulated by legislation in 2006. Mainly refers to farmers with the same production and service needs, voluntary joint democratic management organization. It is an organization that unites many farmers and family farms, which can become members of a cooperative. Cooperatives provide members with services such as agricultural materials, technology, agricultural machinery and sales.

Basic characteristics

Family farm features:

(1) Family members as the main labor force.

(2) Moderate scale of land, the area has certain requirements, generally more than 100 acres.

(3) Take agricultural income as the main source of family income.

(4) At present, provinces are experimenting with registration, and there is no unified identification standard.

Main features of cooperatives:

(1) There must be at least five or more farmers to initiate the establishment, farmer members at least 80%, there is no upper limit for members, and members can be developed across regions.

(2) There is no requirement for the size of the land, but there must be a business place and registered capital.

(3) Peasants are free to join, free to leave, and democratic management.

(4) Conduct business mainly for members.

(5) The business of cooperatives includes the sale, transportation, storage and processing of agricultural materials and agricultural products.

(6) Register with the industrial and commercial bureau at or above the county level and obtain a business license.

Conditional requirement

The following conditions are required to start a family farm:

(1) A certain scale of land.

(2) Master agricultural production methods and technologies.

(3) It has certain financial strength and production conditions, such as agricultural machinery, warehouses, etc.

To start a cooperative, the following conditions are required:

(1) Have a certain economic strength and social relations.

(2) Experience and background in agriculture is preferred.

(3) Good at management, have a certain degree of visibility in the local, good reputation.

(4) Good relations with local governments.

Suitable for the crowd

Suitable for family farms:

(1) Farmers and families with a certain economic basis.

(2) People who change careers into agriculture and hope to make profits through moderate scale operations.

(3) People who love farming production and life.

(4) can bear hardships, practical, hard-working, willing to live a well-off life on their own.

Suitable for people who start cooperatives:

(1) Operators in the agricultural industry chain, such as agricultural material dealers, agricultural product brokers, agricultural enterprises, etc.

(2) Local influential people, such as village heads, village party secretaries and local competent people.

(3) People with economic strength and good relations with the government, such as business owners and association leaders.

(4) Returning entrepreneurs, such as those who work abroad and return home, college students, etc.