Will Joining Cooperative Promote Farmers to Replace Chemical Fertilizers with Organic Fertilizers?

Abstract

This study examines whether cooperatives can assist more than 200 million farmers in China, who are facing tightening resources and environmental constraints, in adopting green farming practices. A framework for counterfactual analysis was established to quantify the impact of farmers joining cooperatives on the reduction in chemical fertilizer consumption and the use of organic fertilizers. The study’s conclusions are based on data from 712 farmers in four counties in Shandong and Henan provinces. Joining a cooperative can have a positive impact on farmers’ selection of environmentally friendly production methods, which increases the likelihood of farmers reducing chemical fertilizer application by 35.6% and organic fertilizer application by 22.0%. It can also reduce the cost of chemical fertilizer application by an average of $209.2/ha. The extent to which smallholder farmers use chemical and organic fertilizers after joining cooperatives depends on the size of their farming operations and their perception of green production.