Mitigating the “Empty Shell” Phenomenon in Farmer Professional Cooperatives: Insights Based on Demonstration Cooperative Policies in China

Farmer professional cooperatives are essential in promoting China’s rural revitalization. However, the widespread occurrence of “empty shell” cooperatives, which are characterized by operational stagnation and human resource depletion, presents significant challenges to achieving this objective. This study explores the role of award-rated demonstration cooperatives in addressing this issue by utilizing a unique dataset of 1570 cooperatives from a particular city in Guizhou Province. The analysis employs mediation and moderation effect models and identifies two primary mechanisms. First, the policy improves cooperatives’ access to government subsidies and loan facilities, which helps mitigate constraints related to human resources and operational risks. Second, cooperative characteristics, including member size, education levels, and leading entity, positively influence the effectiveness of these policy measures. Conversely, the equity structure shows a dual moderating effect, reducing policy benefits in resource retention while enhancing them in operational improvement. These findings highlight the intricate relationship between policy design and cooperative attributes in addressing structural inefficiencies and provide valuable insights for strengthening cooperative governance and advancing rural development.