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

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  • 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)

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    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.

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    File URL: http://hdl.handle.net/10.1002/agr.20069
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    Bibliographic Info

    Article provided by John Wiley & Sons, Ltd. in its journal Agribusiness.

    Volume (Year): 22 (2006)
    Issue (Month): 1 ()
    Pages: 135-153

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    Handle: RePEc:wly:agribz:v:22:y:2006:i:1:p:135-153

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    Web page: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1520-6297

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    1. 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.
    2. Harvey James, 2002. "On the Reliability of Trusting," Microeconomics 0202002, EconWPA.
    3. 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.
    4. 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).
    5. 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.
    6. 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, vol. 27(5), pages 1005-1032, December.
    7. 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.
    8. 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, vol. 27(4), pages 1005-1032, December.
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    Cited by:
    1. Granoszewski, Karol & Spiller, Achim, 2013. "Langfristige Rohstoffsicherung in der Supply Chain Biogas: Status Quo und Potenziale vertraglicher Zusammenarbeit," DARE Discussion Papers 1303, Georg-August University of Göttingen, Department of Agricultural Economics and Rural Development (DARE).
    2. Golovina, Svetlana & Nilsson, Jerker, 2009. "Difficulties for the Development of Agricultural Cooperatives in Russia: The Case of the Kurgan Region," Journal of Rural Cooperation, Hebrew University, Center for Agricultural Economic Research, vol. 37(1).
    3. Deimel, Mark & Theuvsen, Ludwig, 2011. "Networking in Meat Production Systems: The Influence of Cooperative Structures on Farmers’ Participation," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(1).
    4. Schulze, Birgit & Spiller, Achim, 2006. "Determinants of Trust between Buyers and Suppliers in Agribusiness: Empirical Evidence from the German Pork Sector," 99th Seminar, February 8-10, 2006, Bonn, Germany 7719, European Association of Agricultural Economists.
    5. Paulson, Nicholas D. & Katchova, Ani L. & Lence, Sergio H., 2008. "Empirical Analysis of the Determinants of Marketing Contract Structures," 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida 6080, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).

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