Abstract: In 2013, the No. 1 document issued by the CPC Central Committee emphasized that farmers’ cooperative was a basic part to drive peasant households into the market, a new type of entity to develop rural collective economy and also an effective carrier to innovate rural social management. The growing environment of farmers’ cooperatives in less developed areas is special. For example, as a result of poor ecological environment, farmers’ cooperatives in less developed areas lack material subsistence, are influenced by the traditional farming culture and guided by the policies of the less developed areas. As farmers’ cooperatives are transforming from the horizontal cooperation to longitudinal cooperation, their functions are also expanded from single to multiple. It is of great significance to deal with government failure and with the relationship between the government and farmers’ cooperatives and farmers, and realize the interests of the state and the development of rural social integration.