Abstract: Forestry cooperative economic organization is an effective method realizing “economy of scale”. The research group has made an investigation of questionnaire survey into 300 farmers in the ten counties (cities) of Wuling and Dabie mountain regions. The group members have made interviews with the farmers and the chief officials of the local forestry bureaus (stations) and the forestry cooperative economic organizations. They have made survey and analysis into the factors of farmers’ individual performance about joining in the forestry cooperative economic organization and the education background which influences farmer’s willingness joining in the organization, of operation profit of the organization and of the degree of the social network. The investigation indicates that there exist problems, in the present foresting economic organization, as non-standard of establishing registration, imperfection of operating mechanism, incomplete of democratic system, the outer developing environment needing to be optimized, etc. The investigation also puts forwards the suggestions as active guidance by establishing new-type forestry cooperative economic organization system, optimizing construction of the system, establishing fine developing environment for the cooperative economic organization, and strengthening service function by promoting productive development of the economic organization.

Key words: cooperative economic organization, system reform of collective forestry ownership, economy of scale