A first in the city, a new farm cooperative, in which peasants exchange their lands for shares in the cooperative and a guaranteed income, was set up in Fengxian District on Dec. 7.

Peasants are given about 600 yuan(US$73) per mu (a traditional unit of area, equal to 0.165 acre) as a share. Those who work for the co-op also earn monthly salaries ranging from 800 to 1000 yuan (US$97-121). As well, 40% of the after-tax profit is returned to the members in the form of dividends. 

The newly-established co-op will produce grain, fruit, vegetables and flowers. It will also explore fields like tourism and agricultural machinery.

The new co-op is likely to gradually increase in popularity. Currently 32 traditional farm cooperatives are registered in Fengxian District. About 8,353 peasant households are involved in these cooperatives.  

Farmer co-ops, also known as specialized economic co-operatives, are organizations where farmers work together by jointly purchasing, producing and marketing their goods.