Farmer Trust in Producer- and Investor-Owned Firms: Evidence from Missouri Corn and Soybean Producers

33 Pages Posted: 12 Nov 2004

See all articles by Harvey S. James, Jr.

Harvey S. James, Jr.

University of Missouri at Columbia - Division of Applied Social Sciences

Michael E. Sykuta

University of Missouri at Columbia - Division of Applied Social Sciences

Date Written: November 2004

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 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, we find that trust is more significant in producers' decisions for marketing soybeans than for corn.

Keywords: Trust, agricultural cooperatives, agribusinesses, farmer marketing decisions

JEL Classification: Q13, Z13

Suggested Citation

James, Harvey S. and Sykuta, Michael E., Farmer Trust in Producer- and Investor-Owned Firms: Evidence from Missouri Corn and Soybean Producers (November 2004). Available at SSRN: https://ssrn.com/abstract=619381 or http://dx.doi.org/10.2139/ssrn.619381

Harvey S. James (Contact Author)

University of Missouri at Columbia - Division of Applied Social Sciences ( email )

Columbia, MO
United States
573-884-9682 (Phone)

HOME PAGE: http://https://hsjames2.wordpress.com

Michael E. Sykuta

University of Missouri at Columbia - Division of Applied Social Sciences ( email )

143 Mumford Hall
Columbia, MO 65211
United States
573-882-1738 (Phone)
573-884-3958 (Fax)

HOME PAGE: http://michaelsykuta.com

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