Strengthening grain legume production in Germany: What drives farmers to join a producer organisation?

Grain legume cultivation in Germany has the potential to benefit agroecological biodiversity, while plant-based proteins are highly demanded. However, grain legume growers face challenges such as climatic variability, uneven political support, and a fragmented market with high transaction costs. Farmers often encounter sales difficulties due to a lack of interest from trading companies and the absence of large, homogeneous lots of consistent quality. Producer organisations (POs) can address these issues by enhancing farmers’ bargaining power, reducing transaction costs, and creating stable regional market structures. Given the limited presence of POs for grain legumes in Germany, we investigate the conditions under which farmers may choose to join a PO and examine farmers’ preferences for an ideal grain legume PO structure. We apply an ordered probit model to identify the factors influencing farmers’ interest in selling the grain legumes they grow on their farms through a PO. Our study reveals that interest in joining a PO increases by 20% when farmers perceive the core objective as achieving better prices. At the same time, provision of additional services, such as advisory support or joint logistics, has little effect. Both small and large grain legume growers show interest in POs, with administrative burdens identified as a major concern against participation. If POs meet farmers’ needs, they have a high potential to encourage grain legume cultivation and, consequently, foster more sustainable agriculture. To unlock this potential, policymakers and PO stakeholders should reduce bureaucratic barriers and promote diverse, farmer-oriented PO models.