China’s top legislature Friday [22 December 2017] heard a report of the draft revision to the Law on Farmers’ Specialized Cooperatives. According to the draft, farmers’ specialized cooperatives in China will share equal legal status with other market entities, and will be able to invest in enterprises in accordance with law…Full Article: Xinhua Dec 2017

Key Point

  • In addition to sharing equal legal status with other market entities, land management and forest rights for cooperative members will be expanded, while electricity usage by agriculture cooperatives will be charged according to agricultural production price standards and not the more expensive industrial production price standards.

ChinaAg Comments

  • In June 2017, Standing Committee of the National People’s Congress (NPC) received a draft revision to the Law on Farmers’ Specialized Cooperatives for legislative review. The revision expanded the definition of cooperatives to include rural tourism, leisure agriculture, and arts and crafts.
  • As of October 2015, according to the Ministry of Agriculture, China had 1.48 million registered Farmers’ Specialized Cooperatives (FSCs). Critics have noted that a large share China’s FSCs are not genuine smallholder cooperatives but instead sham cooperatives formed to take advantage of government subsidies and policies.
  • Launched in 2007, China’s Law on Farmers’ Specialized Cooperatives permits the creation of specialized cooperatives. These specialized cooperatives allow farmers who engage in similar agricultural output to pool resources.

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