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

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

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 producersÂ’' decisions for marketing soybeans than for corn.

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File URL: http://purl.umn.edu/19974
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Paper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2004 Annual meeting, August 1-4, Denver, CO with number 19974.

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Date of creation: 2004
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Handle: RePEc:ags:aaea04:19974
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  1. 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.
  2. Terza, Joseph V., 1987. "Estimating linear models with ordinal qualitative regressors," Journal of Econometrics, Elsevier, vol. 34(3), pages 275-291, March.
  3. James, Harvey S., Jr., 2002. "The Effect Of Trust On Public Support For Biotechnology: Evidence From The U.S. Biotechnology Study, 1997-1998," Working Papers 26041, University of Missouri Columbia, Department of Agricultural Economics.
  4. 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.
  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, 06.
  6. 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.
  7. Harvey James, 2002. "The Trust Paradox: A Survey of Economic Inquiries Into the Nature of Trust and Trustworthiness," Microeconomics 0202001, EconWPA.
  8. Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Trust in Large Organizations," NBER Working Papers 5864, National Bureau of Economic Research, Inc.
  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. 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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