Abstract:Risk sharing and benefit distribution are two important institutional arrangements of Member Heterogeneous famer cooperatives,which determines the contract form and influences the stability of cooperatives. Taking three Chinese dairy farmer cooperatives as an example,this paper analyzes the logical relationships between risk sharing,benefit distribution and cooperative stability. The result shows that the cooperation stability between cooperative members and organizations is influenced both by benefit distribution and risk sharing of cooperatives. If other conditions are under control and unchanged,the more risks cooperatives take,the stabler the cooperative relationships between cooperatives and members will become. If the surplus distribution mechanism between cooperatives and members is more distinct,the tendency degree for keeping a stable cooperation relationship of members and cooperatives will be relatively higher.