The purpose of this study was to explore the functional changes of farmers' association after incorporation and to understand the reactions of farmers to these changes. Data for the present study were collected during February and March 1980 from a purposive sample survey of 215 farm households.Most farmers felt that better services had been provided after the incorporation of local farmers' association. Farmers who were full-time farming, younger, junior in farming and membership of farmers' association or with larger farm size tend to have better appraisal to the incorporate measure. However the incorporation of local farmers' association also caused some serious problems. Although some basic functions of farmers' association, i.e., agricultural credit, farm supplies, and farm marketing, had been strengthened after the incorporation, too much profit-oriented activities had interrupted the regular extension education services, especially the extension education in the mountain areas had almost terminated. Furthermore, not much effort had been made to encourage farmers to participate in local activities after incorporation.In order to make the incorporate measure substantially beneficial to farmers, it is imperative to encourage and strengthen the activities of various farmers' organizations such as farmers' discussion group, joint-cultivation team when the incorporate measure is taken.