Abstract
With the rapid development of Economy in China, the agriculture and rural issues become more and more serious. The biggest problem of China's agriculture and rural issues is the expansion of economic gap between urban and rural areas, which caused by low productivity in agricultural sector and its' underlying problem is small scale farming. In order to rectify the above mentioned big gap, the efficiency of farm management and agricultural products distribution by farmers' cooperatives has become an urgent issue. Farmers' cooperatives have three functions as the following: First is to rationalize the shipment cost and distribution expenses and to strengthen the sales force in the market by farmers' cooperation. Second is to promote the dissemination of technology by farmers' cooperatives. The third is to integrate lands by farmers' cooperatives so as to bring up large-scale management. According to statistics, the number of farmers' cooperatives has reached 246,000 by the end of 2009, which spread quickly in rural China. Farmers' cooperatives have covered a wide range from agriculture, livestock, agricultural products processing, commercial, distribution industry, to services. Recently, some also move into agricultural insurance, financial sector. The case study on farmers' cooperatives in this paper is divided into two types: One type focuses on the insurance of sales channels for famers produce by farmers' cooperatives in Chengmai city Hainan province and Laizhou city Shandong province. The other is about the dissemination of technology to farmers by farmers' cooperatives in Rushan city Shandong province.
