Abstract: The members’ low degree of identity and the managers’ “insiders control” are the two factors affecting the efficiency of farmer cooperatives.On the one hand,the cooperatives should select their optimal position according to the positions of competing enterprises,and centralize  members’ location so as to increase the their identity.On the other hand,only by reducing the members’ supervisory costs and increasing the managers’ deviating costs can the managers’“insiders control” over the cooperatives be weakened.

Key words: farmers&rsquo, specialized cooperatives;governance structure of the cooperatives;member identity;insiders control;game theory