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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)

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. 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.
    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(4), pages 1005-1032, December.
    3. 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).
    4. Harvey James, 2002. "On the Reliability of Trusting," Microeconomics 0202002, EconWPA.
    5. 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.
    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;Academy of International Business, vol. 27(5), pages 1005-1032, December.
    7. 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.
    8. 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.
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    Cited by:

    1. Valérie Barraud-Didier & Marie-Christine Henninger & Guilhem Anzalone, 2012. "The Weakening of the Member-cooperative Relationship in France
      [La distanciation du lien adhérent/coopérative en France]
      ," Post-Print hal-01395461, HAL.
    2. 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.
    3. Marie-Christine Henninger & Valérie Barraud-Didier, 2013. "Complexity of the link between members and cooperatives : a market relation based on social interactions
      [La complexité du lien adhérent-coopérative. La complexité du lien adhérent-coopérative : un
      ," Post-Print halshs-01377049, HAL.
    4. Nilsson, Jerker & Kihlen, Anna & Norell, Lennart, 2009. "Are Traditional Cooperatives an Endangered species? About Shrinking Satisfaction, Involvement and Trust," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 12(4).
    5. Damien Rousselière, 2017. "A flexible approach to age dependence in organizational mortality. Comparing the life duration for cooperative and non-cooperative enterprises using a Bayesian Generalized Additive Discrete Time Survi," Working Papers SMART - LERECO 17-08, INRA UMR SMART-LERECO.
    6. Barraud-Didier, Valérie & Henninger, Marie-Christine & El Akremi, Assâad, 2012. "The Relationship Between Members’ Trust and Participation in the Governance of Cooperatives: The Role of Organizational Commitment," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 15(1).
    7. Viergutz, Tim & Zubek, Nana & Schulze-Ehlers, Birgit, 2016. "How Spatial Pricing Affects Cooperative Members’ Switching Decisions," 149th Seminar, October 27-28, 2016, Rennes, France 244772, European Association of Agricultural Economists.
    8. Li, Kai & Zhou, Jie-hong & Liang, Qiao & Huang, Zuhui, 2015. "Food safety controls and governance structure varieties in China's vegetable and fruit sector," 2015 Conference, August 9-14, 2015, Milan, Italy 212046, International Association of Agricultural Economists.
    9. Nillson, J. & Hendrikse, G.W.J., 2009. "Gemeinschaft and Gesellschaft in Cooperatives," ERIM Report Series Research in Management ERS-2009-059-ORG, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    10. Peter Österberg & Jerker Nilsson, 2009. "Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 181-197.
    11. 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).
    12. Newman, Claire & Briggeman, Brian C., 2016. "Farmers’ Perceptions of Building Trust," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association (IFAMA), vol. 19(3).
    13. Michael E. Sykuta, 2010. "Empirical Methods in Transaction Cost Economics," Chapters,in: The Elgar Companion to Transaction Cost Economics, chapter 16 Edward Elgar Publishing.
    14. 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).
    15. Paulson Nicholas D & Katchova Ani L & Lence Sergio H, 2010. "An Empirical Analysis of the Determinants of Marketing Contract Structures for Corn and Soybeans," Journal of Agricultural & Food Industrial Organization, De Gruyter, vol. 8(1), pages 1-25, May.
    16. Enander, John & Melin, Andreas & Nilsson, Jerker, 2009. "Social influences in forest owners' choice between co-operative and investor-owned buyers," Department of Economics publications 4257, Swedish University of Agricultural Sciences, Department of Economics.
    17. 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).
    18. Valérie Barraud-Didier & Marie-Christine Henninger & Pierre Triboulet, 2014. "La Participation des Adhérents Dans Leurs Coopératives Agricoles: Une Étude Exploratoire du Secteur Céréalier Français," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 62(1), pages 125-148, March.
    19. 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).

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