Transportation is important for tobacco production in the mountain area in China. Agricultural cooperatives have been established to provide transportation services. In this paper, we assess whether receiving transportation services from agricultural cooperatives affect the technical efficiency of tobacco producers, using 346 household data from Guizhou Province, China. The results show that receiving transportation services result in an increase in household income of tobacco planting by 143.7% or 291.4% or 300.6% with different estimation approaches. Moreover, we also find that inclusion of membership can enhance the impact of transportation on household income. We conclude that agricultural cooperatives should be encouraged to better transportation and rural infrastructures. Acknowledgement : We are grateful for comments from Pro. Hongdong Guo, Markus Hanisch and staff from Division of Economics of Agricultural Cooperatives of Humboldt University zu Berlin. This work was supported by Guizhou Tobacco Monopoly, China.