The period after the introduction of GM technology in the Argentine agricultural sector has been characterized by soyaization, biotechnological hegemony, export-oriented populism or as a success story. All these topics are centred on the production of GM soybean. The first part of the thesis claims that the expansion and increasing production of GM soybean in Argentina has replaced other crops and agricultural activities and led to a production concentrated in larger farming units. Based on this perception the thesis focus on how local institution, such as rural cooperatives, can improve socioeconomic distribution and management of natural resource within the actual agricultural reorganization. In this context collective action is presented as a central tool to solve social dilemmas connected to locating financial resources, markets, technical expertise, new production methods and diversification of agricultural activities. The thesis recognizes that the capacity of the farmers to engage in collective action on a local level is tied to political decisions on higher levels, and to understand how the cooperative work within the broader political context agricultural policies on a government level is also analysed in the following work. The objective of the thesis is to emphasize the importance of local rural institutions in Argentina in the aftermath of the transition to GM soybean production, and promote a cooperative based model for future agro-state collaborations.