Corporate Farmer Behavior and Cooperative Governance: A Mixed-Level Analysis of Transactional Relationships in Sales and Finance Among Japanese Agribusinesses

The rapid professionalization of agricultural corporations is reshaping traditional rural governance and cooperative models. This study examines the evolving business relationships between agricultural corporations and Japan Agricultural Cooperatives (JA), explicitly comparing economic (sales) and credit (financial) operations. Employing a mixed-level complementary approach, this study analyzed micro-level survey data (N = 492) via logistic regression and macro-level national data (N = 1412) via cross-tabulation. The findings reveal distinct patterns across the two domains: in economic operations, a negative relationship was found between the combined indicator for processing and direct sales (sixth-sector industrialization), employee size, and the probability that JA is the primary sales channel. In credit operations, the share of corporations naming JA as a primary financial partner is lower in larger-scale groups, whereas the shares naming regional banks and the Japan Finance Corporation are higher. As possible explanations for these patterns, the sales results may reflect asset specificity and hold-up risks, while the credit differences across scale groups may reflect limited cooperative credit capacity and a gradual shift toward commercial banks. These results suggest that multi-purpose cooperatives face inherent governance tensions as member heterogeneity increases. To remain relevant, cooperatives may benefit from transitioning from uniform service providers to flexible regional platforms, offering customized non-financial management support and coordinating with external financial institutions. This study offers vital implications for both cooperative scholars and agribusiness practitioners navigating sustainable agricultural development.