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In an attempt to find a suitable model for re—organizing agriculture in Iran, a number of farm co —operatives have been established with the support of the government during 1970—77. The results of this study, made on two of these farm co—operatives in the south of Iran revealed that farm co—operatives have achieved some success on economic grounds. Farmer's income has been increased yearly by 29 percent. The yield per hectar of major crops such as irrigated wheat and rice has been increased by 50 and 47 percent, respectively. Another effect was the increase in the rate of migration and 41 percent of the members have migrated to other places. In spite of some economic success, they have been faced with serious problems, among them notably weak attachment and loyality of the farmer members to the cooperatives.