How Can Farmers' Cooperatives Raise Their Level of Internal Trust

At present, farmers' professional cooperatives are developing rapidly, but at the same time problems have emerged such as non-standardized management, a low degree of organization, and weak cohesion, especially the failure to form a cooperative culture generally recognized by members and the lack of internal trust within cooperatives. It is particularly necessary to conduct an in-depth analysis of the internal trust structure of farmers' professional cooperatives, accurately identify the causes of that trust structure, and take targeted measures to improve it and raise the level of internal trust in cooperatives.

I. Characteristics of the Internal Trust Structure of Farmers' Professional Cooperatives

(1) A differential mode of association dominated by interpersonal trust. In terms of internal composition, the trust structure of farmers' professional cooperatives presents a differential mode of association in the shape of circles, half-circles and chains, led by interpersonal trust. The subjects (and objects) of trust are respectively members, cooperative managers, and the cooperative (cooperative philosophy, cooperative culture, cooperative institutions). Trust among members and trust between members and cooperative managers fall within the category of interpersonal trust, while trust between members and the cooperative falls within the category of systemic trust. In the current internal trust structure of farmers' professional cooperatives, what plays the leading role is still interpersonal trust dominated by the “differential mode of association”, and members' trust in leaders occupies the core position. Systemic trust between members and the cooperative remains a weak link.

(2) A “horizontal” field structure. In terms of its mechanism of action, the trust structure of farmers' professional cooperatives presents “horizontal” field characteristics. The association between members and the cooperative mainly relies on blood, emotional and geographical ties among farmers. Cooperatives follow the principle of democratic management, are profit-oriented externally but not internally, and surplus is mainly returned according to the “patronage” of members with the cooperative. These characteristics determine that the field structure of cooperatives is “horizontal”, and what plays the main role is interpersonal relationships rather than institutional norms.

(3) Transmission elasticity and structural instability. In terms of trust transmission, the internal trust structure of farmers' professional cooperatives presents elastic characteristics. At present, the internal trust structure of most farmers' professional cooperatives has not yet shown a complete trust circle or network structure; there are a few “blind spots” in their internal trust structure, and many “trust lines” within the circle. The existence of “blind spots” shows that, because the damping of trust transmission is too great, trust cannot be transmitted directly among cooperative members. Once a certain “connection point” of a “trust line” breaks, the “trust line” will snap, which makes this “circle-shaped” or “network-shaped” structure of China's farmers' professional cooperatives highly unstable.

II. Causes of the Formation of the Internal Trust Structure of Farmers' Professional Cooperatives

⟦NL> (1) Members' complex trust needs induce the formation of the internal trust structure. Differences in farmers' heterogeneity and in the nature of their resource endowments lead to different members' trust demands on farmers' professional cooperatives. Different value goals of the founders of farmers' professional cooperatives lead cooperatives to provide functions to different degrees and produce different behaviors in actual operation; combined with differences in their own resource endowments caused by different geographical locations, deviations appear when satisfying members' different trust needs.

(2) The social relationships in which members are situated induce the implementation of internal trust. The implementation of trust is greatly influenced by trust needs, and the state of trust needs determines the intensity of trust implementation and the choice of trust objects. The choice of trust objects in trust chains, trust circles and trust networks mainly depends on the nature of the social relationships on which the trust relationship relies. Acquaintance relationships can reduce trust risks and promote smooth cooperation. In cooperatives with a higher degree of member homogeneity, it is easier to bring about the horizontal implementation of the internal trust structure of farmers' professional cooperatives; conversely, in cooperatives with a lower degree of member homogeneity, the degree and scope of the horizontal implementation of the internal trust structure of farmers' professional cooperatives are lower, and they tend more toward enterprise-like characteristics.

(3) Different degrees of trust confirmation induce the stability of the internal trust structure. Trust confirmation is the final link in trust building, a feedback to trust implementation, testing the quality of trust activities and affecting whether trust building can occur again. Farmers' professional cooperatives are a special organizational form, and their internal trust structure depends more on trust confirmation than that of ordinary organizations. In tightly connected cooperatives, members' trust needs are confirmed to a relatively high degree, a trust relationship between members and the cooperative is established, and new trust needs are thereby generated, allowing the internal trust structure to continue in a stable state. Conversely, in loosely connected cooperatives, members' trust needs cannot be effectively confirmed or are confirmed only to a very low degree; the “shell” cooperatives in reality are evidence of this.

III. Optimization of the Internal Trust Structure of Farmers' Professional Cooperatives

(1) Adjust the internal trust composition of cooperatives. On the one hand, it is necessary to vigorously strengthen the building of institutional trust within cooperatives. Institutional trust is the weak link in the internal trust of farmers' professional cooperatives. To strengthen farmers' institutional trust, it is first necessary to gradually improve and perfect the Law of Farmers' Professional Cooperatives and establish related supporting legislation, and to guide the formation and operation of cooperatives in accordance with the Opinions on Guiding and Promoting the Standardized Development of Farmers' Cooperatives, so that cooperatives operate according to law and achieve standardization and institutionalization. Second, it is necessary to increase publicity about knowledge related to farmers' professional cooperatives, so that farmers better understand cooperative institutions and culture and develop a strong sense of identification within, thereby enhancing farmers' tolerance for the realization of cooperatives' long-term development goals. Finally, it is necessary to correctly handle the allocation of ownership rights, control rights and income rights between farmers' professional cooperatives and their members, and in the actual operation of cooperatives to focus on handling the distribution of interests with members and to respect and effectively safeguard farmers' rights. On the other hand, it is necessary to further strengthen the building of interpersonal trust within cooperatives. First, build internal communication platforms for cooperatives to promote exchanges between members and the cooperative and among members themselves, and create a good atmosphere for interpersonal interaction within the cooperative. Second, attach importance to building a cooperative culture, promote the maximum transformation of interpersonal trust into cooperation between members and the cooperative, and further consolidate the building of interpersonal trust within cooperatives.

(2) Expand the scope of cooperation. On the one hand, promote the horizontal development of cooperatives. Horizontal development refers to the expansion of the scale of farmers' professional cooperatives, forming economies of scale through growth in “quantity”, raising cooperatives' position in the industrial chain, enhancing their bargaining power in the market, and improving their market competitiveness. Promoting the horizontal development of cooperatives can start from three aspects: first, expand the production and operation scale of existing members of the cooperative; second, attract farmers who have not yet joined the cooperative to become members; third, promote the “union” of cooperatives that are similar or related in business and geographically close, forming union cooperatives. On the other hand, cautiously promote the vertical development of cooperatives. Vertical development refers to the process by which farmers' professional cooperatives extend toward the pre-production or post-production stages of the industrial chain in which they are located. The vertical development of cooperatives can save transaction costs and enable cooperatives to obtain higher profits, but most farmers' professional cooperatives are currently at the stage of horizontal development, and some even remain at the level of general technical services; their funds, technology and other aspects cannot meet the requirements of vertical development, so a cautious attitude should be taken toward the vertical development of these cooperatives.

(3) Strengthen the core of internal trust in cooperatives. In a cooperative, leaders are like a bridge for cooperation, linking members and the cooperative organization. Trust in leaders can drive trust among members and members' trust in the cooperative organization, enhance the cooperative's internal cohesion, and make the cooperative's internal trust structure more stable. Whether a cooperative is in a period of horizontal growth or a stage of vertical development, it must find ways to strengthen members' trust in leaders. Cooperative leaders must not only understand the relevant knowledge of business management, but also be able to understand farmers' needs and know how to get along with farmers. Therefore, when selecting cooperative leaders, it is best to choose rural “capable people” who understand business, can manage, and have a good local reputation. In addition, the intensity of training for members should be increased, which can enhance members' trust in cooperative leaders and also serves as a “reserve” of leaders.