Purpose: In the context of farmers in developing countries, this study analyzes the role of cooperative behavior in facing the risk of encouraging innovative agricultural production projects by small-scale farmers. Design/methodology/approach: A within-subjects field experiment was conducted with small-scale Colombian panela-cane farmers. We used the data gathered to conduct the regression analyses. Findings: The results suggest that small farmers are more willing to invest in a novel and profitable alternative, although riskier when they can follow cooperative behavior by joining a group and pooling resources to face risk. However, the possibility of cooperating with a group to invest in a novel production project depends on its expected risk level. Originality: Research has focused on experimentally testing the effect of cooperative behavior when facing risk. We contribute to the literature by showing the effect of the possibility of collectively managing risk on investment.