This research focuses on the current development status, operating mechanism, organizational structure, existing problems and operating status of Y and S specialized farmers cooperatives and their member households in an area of Inner Mongolia in order to illustrate the future development of specialized farmers cooperatives. From the research result, it can be seen that the specialized farmers' cooperative is a relatively new farming operation method in Inner Mongolia, but the cooperative is still at the beginning stage of development. Since the establishment of Y and S specialized farmers' cooperatives, they have realized a profit in the last three years and this has helped to increase the income of their members. However, there are also problems as follow. Firstly, for Y specialized farmers' cooperatives, it limited its member's income and its assets accumulation and business expansion by operation of 'investment in kind.' Secondly, member households are not provided with all the essential elements available to farmers' cooperatives, which limits the ability of farmers' cooperatives to increase farmer's income. Thirdly, Y and S specialized farmers' cooperatives are both involved in farming processing; expanding of specialized farmers' cooperatives business requires an integration of other farming elements. Finally, these two specialized farmers' cooperatives, Y and S, have not integrated the grassland which should be under proper management and use, therefore those specialized farmers' cooperative do not perform well in protecting the environment of grassland.
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