Government Policy and Performance of Agricultural Cooperatives: A Case Study in Chitwan District, Nepal

Agricultural cooperatives are producer-owned and controlled organizations to improve farmers’ livelihoods by correcting market failure. They support collective activities where individual incentives insufficient produce public goods. The government of Nepal has been investing economic resources in this sector, prioritizing as part a strategy for poverty reduction. This study examines poor access agricultural the impact membership on farm total household income, based survey 572 households key informant interviews 37 cooperative managers. ethnicity family neighborhood, smallholder land size, distance an cooperative, nearest local market, motorable road determinants that influence membership. analysis effects is propensity score matching, controlling large array community characteristics. estimates imply may significantly affect net crop but overall income modest. appear be focused financial services such savings credit less concerned with production, engage almost no marketing activities.