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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
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    File URL: http://purl.umn.edu/19974
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    References listed on IDEAS

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    1. James, Harvey S., Jr., 2002. "The Effect Of Trust On Public Support For Biotechnology: Evidence From The U.S. Biotechnology Study, 1997-1998," 2002 Annual meeting, July 28-31, Long Beach, CA 19651, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    2. 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.
    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. Margaret Levi, 2000. "When good defenses make good neighbours: a transaction cost approach to trust, the absence of trust distrust," Chapters,in: Institutions, Contracts and Organizations, chapter 12 Edward Elgar Publishing.
    5. La Porta, Rafael, et al, 1997. "Trust in Large Organizations," American Economic Review, American Economic Association, vol. 87(2), pages 333-338, May.
    6. Terza, Joseph V., 1987. "Estimating linear models with ordinal qualitative regressors," Journal of Econometrics, Elsevier, vol. 34(3), pages 275-291, March.
    7. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, EconWPA.
    8. repec:hrv:faseco:30726298 is not listed on IDEAS
    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).
    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. 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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    Keywords

    Agribusiness;

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