Farmer Trust in Producer- and Investor-owned Firms: Evidence from Missouri Corn and Soybean Producers
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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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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 License.