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Farmer trust in producer- and investor-owned firms: Evidence from Missouri corn and soybean producers

Author

Listed:
  • Harvey S. James Jr.

    (Department of Agricultural Economics, University of Missouri-Columbia, 146 Mumford Hall, Columbia, MO 65211)

  • Michael E. Sykuta

    (Department of Agricultural Economics, University of Missouri-Columbia, 135B Mumford Hall, Columbia, MO 65211)

Abstract

The authors examine whether cooperatives are characterized by greater trust than investor-owned firms. They surveyed 2,000 Missouri corn and soybean farmers and found that trust and farmer perceptions of honesty and competence are higher in cooperatives than in investor-owned firms and that trust is a significant factor explaining the choice of farmers to market to cooperatives rather than investor-owned firms. Interestingly, they found that trust is more significant in producers' decisions for marketing soybeans than for corn. [JEL classifications: Q130, Z130]. © 2006 Wiley Periodicals, Inc. Agribusiness 22: 135-153, 2006.

Suggested Citation

  • Harvey S. James Jr. & Michael E. Sykuta, 2006. "Farmer trust in producer- and investor-owned firms: Evidence from Missouri corn and soybean producers," Agribusiness, John Wiley & Sons, Ltd., vol. 22(1), pages 135-153.
    • Handle: RePEc:wly:agribz:v:22:y:2006:i:1:p:135-153
    DOI: 10.1002/agr.20069
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    References listed on IDEAS

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    1. Harvey S. James & Michael E. Sykuta, 2005. "Property Right and Organizational Characteristics of Producer‐owned Firms and Organizational Trust," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 76(4), pages 545-580, December.
    2. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(5), pages 1005-1032, December.
    3. Joost M.E. Pennings & Scott H. Irwin & Darrel L. Good, 2002. "Surveying Farmers: A Case Study," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 24(1), pages 266-277.
    4. Murray Fulton & Konstantinos Giannakas, 2001. "Organizational Commitment in a Mixed Oligopoly: Agricultural Cooperatives and Investor-Owned Firms," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1258-1265.
    5. Shapira, Reuven, 1999. "Loss of Communal Sustainability: The Kibbutz Shift from High-Trust to Low-Trust Culture," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 27(1), pages 1-17.
    6. Harvey S. James Jr., 2002. "On the Reliability of Trusting," Rationality and Society, , vol. 14(2), pages 229-256, May.
    7. Preet S Aulakh & Masaaki Kotabe & Arvind Sahay, 1996. "Trust and Performance in Cross-Border Marketing Partnerships: A Behavioral Approach," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(4), pages 1005-1032, December.
    8. Michael E. Sykuta & Michael L. Cook, 2001. "A New Institutional Economics Approach to Contracts and Cooperatives," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 83(5), pages 1273-1279.
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