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Farmer Trust In Agricultural Cooperatives: Evidence From Missouri Corn And Soybean Producers

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  • James, Harvey S., Jr.
  • Sykuta, Michael E.

Abstract

We examine whether cooperatives are characterized by greater trust than investor-owned firms. We survey 2000 Missouri corn and soybean farmers and find that trust and farmer perceptions of trustworthiness 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, we find that trust is more significant in producers' decisions for marketing soybeans than for corn.

Suggested Citation

  • James, Harvey S., Jr. & Sykuta, Michael E., 2004. "Farmer Trust In Agricultural Cooperatives: Evidence From Missouri Corn And Soybean Producers," 2004 Annual meeting, August 1-4, Denver, CO 19974, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    • Handle: RePEc:ags:aaea04:19974
    DOI: 10.22004/ag.econ.19974
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    References listed on IDEAS

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    1. Harvey S. James, 2003. "The effect of trust on public support for biotechnology: Evidence from the U.S. Biotechnology Study, 1997-1998," Agribusiness, John Wiley & Sons, Ltd., vol. 19(2), pages 155-168.
    2. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    3. Claude Ménard (ed.), 2000. "Institutions, Contracts and Organizations," Books, Edward Elgar Publishing, number 1921.
    4. 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.
    5. Svein Ole Borgen, 2001. "Identification as a Trust-Generating Mechanism in Cooperatives," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 72(2), pages 209-228, June.
    6. Margaret Levi, 2000. "When good defenses make good neighbours: a transaction cost approach to trust, the absence of trust distrust," Chapters, in: Claude Ménard (ed.), Institutions, Contracts and Organizations, chapter 12, Edward Elgar Publishing.
    7. Terza, Joseph V., 1987. "Estimating linear models with ordinal qualitative regressors," Journal of Econometrics, Elsevier, vol. 34(3), pages 275-291, March.
    8. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, University Library of Munich, Germany.
    9. 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.
    10. 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.
    11. Jarka Chloupkova & Gunnar Svendsen & Gert Svendsen, 2003. "Building and destroying social capital: The case of cooperative movements in Denmark and Poland," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 20(3), pages 241-252, September.
    12. James Jr., Harvey S., 2002. "The trust paradox: a survey of economic inquiries into the nature of trust and trustworthiness," Journal of Economic Behavior & Organization, Elsevier, vol. 47(3), pages 291-307, March.
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    Cited by:

    1. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 3847, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    2. Evans, Lewis & Meade, Richard, 2005. "The Role and Significance of Cooperatives in New Zealand Agriculture, A Comparative Institutional Analysis," Working Paper Series 18942, Victoria University of Wellington, The New Zealand Institute for the Study of Competition and Regulation.
    3. repec:vuw:vuwscr:18942 is not listed on IDEAS

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