Farmer Trust in Producer- and Investor-owned Firms: Evidence from Missouri Corn and Soybean Producers | Zendy

Harvey S. James | Zendy; Michael E. Sykuta | Zendy

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

Author(s) -

Harvey S. James,

Michael E. Sykuta

Publication year - 2004

Publication title -

ssrn electronic journal

Language(s) - English

Resource type - Journals

ISSN - 1556-5068

DOI - 10.2139/ssrn.619381

Subject(s) - business , agricultural economics , agricultural science , economics , environmental science

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.

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