Skip to main content Accessibility help
×
Home

Revisiting the Impact of Bt Corn Adoption by U.S. Farmers

  • Jorge Fernandez-Cornejo (a1) and Seth Wechsler (a2)

Abstract

This study examines the impact of adopting Bt corn on farm profits, yields, and insecticide use. The study employs an econometric model that corrects for self-selection and simultaneity. The model is estimated using nationwide farm-level survey data for 2005. Regression analysis confirms that Bt adoption is associated with increased variable profits, yields, and seed demand. However, the results of this analysis suggest that Bt adoption is not significantly related to insecticide use. This result may be due to the fact that insect infestation levels were lower in 2005 than they were in previous years.

Copyright

References

Hide All
Baute, T.S., Sears, M.K., and Schaafsma, A.W. 2002. “Use of Transgenic Bacillus thuringiensis Berliner Corn Hybrids to Determine the Direct Economic Impact of the European Com Borer (Lepidoptera: Crambidae) on Field Corn in Eastern Canada.” Journal of Economic Entomology 95(1): 5764.
Cappellari, L., and Jenkins, S. 2003. “Multivariate Probit Regression Using Simulated Maximum Likelihood.” Stata Journal 3(3): 278294.
Diewert, W.E. 1974. “Applications of Duality Theory.” In Intriligator, M. and Kendrick, D., eds., Frontiers of Quantitative Economics (Vol. II). Amsterdam: North-Holland.
Diewert, W.E., and Ostensoe, L. 1988. “Flexible Functional Forms and Global Curvature Conditions.” In Barnett, W., Berndt, E., and White, H., eds., Dynamic Econometric Modeling. Boston: Cambridge University Press.
Dillehay, B.L., Roth, G.W., Calvin, D.D., Karatochvil, R.J., Kuldau, G.A., and Hyde, J.A. 2004. “Performance of Bt Corn Hybrids, Their Near Isolines, and Leading Corn Hybrids in Pennsylvania and Maryland.” Agronomy Journal 96(204): 818824.
Duffy, M. 1999. “Does Planting GMO Seed Boost Farmers’ Profits?” Leopold Letter 11, Iowa State-Leopold Center for Sustainable Agriculture, Ames, Iowa. Available at http://www.leopold.iastate.edu/news/leopold-letter/1999/fall/does-planting-gmo-seed-boost-farmers-profits (accessed May 18, 2012).
Duffy, M. 2001. “Who Benefits from Biotechnology?” Paper presented at the 2001 American Seed Trade Association meeting, Chicago, IL. Available at http://www2.econ.iastate.edu/faculty/duffy/Pages/biotechpaper.pdf (accessed May 18, 2012).
Fang, M., Motavalli, P.P., Kremer, R.J., and Nelson, K.A. 2007. “Assessing Changes in Soil Microbial Communities and Carbon Mineralization in Bt and non-Bt Corn Residue-Amended Soils.” Applied Soil Ecology 37(1): 150160.
Feder, G., Just, R., and Zilberman, D. 1985. “Adoption of Agricultural Innovations in Developing Countries: A Survey.” Economic Development and Cultural Change 33(2): 255298.
Fernandez-Cornejo, J. 1996. “The Microeconomic Impact of IPM Adoption: Theory and Adoption.” Agricultural and Resource Economics Review 25(2): 149160.
Fernandez-Cornejo, J., Hendricks, C., and Mishra, A. 2005. “Technology Adoption and Off-Farm Household Income: The Case of Herbicide-Tolerant Soybeans.” Journal of Agricultural and Applied Economics 37(2): 549563.
Fernandez-Cornejo, J., Klotz-Ingram, C., and Jans, S. 2002. “Farm-Level Effects of Adopting Herbicide-Tolerant Soybeans in the U.S.A.Journal of Agricultural and Applied Economics 34(1): 149163.
Fernandez-Cornejo, J., and Li, J. 2005. “The Impacts of Adopting Genetically Engineered Crops in the USA.” Paper presented at the American Agricultural Economics Association meetings, July 24-27.
Fernandez-Cornejo, J., and McBride, W. 2002. “Adoption of Bioengineered Crops.” Agricultural Economic Report No. 810, Economic Research Service, U.S. Department of Agriculture, Washington, D.C.
Gates, R. 2006. “A Mata Geweke-Hajivassiliou-Keane Multivariate Normal Simulator.” Stata Journal 6(2): 190213.
Geweke, J. 1989. “Bayesian Inference in Econometric Models Using Monte Carlo Integration.” Econometrica 57(6): 13171339.
Greene, W. 1997. Econometric Analysis (3rd edition). Upper Saddle River, NJ: Prentice-Hall.
Hajivassiliou, V., and McFadden, D. 1998. “The Method of Simulated Scores for the Estimation of LDV Models.” Econometrica 66(4): 863896.
Heckman, J. 1979. “Sample Selection Bias as a Specification Error.” Econometrica 47(1): 153161.
Hutchinson, W.D., Burkness, E.C., Hellmich, R.L., Kaster, L.V., Hunt, T.E., Wright, R.J., Pecinovsky, K., Rabaey, T.L., Flood, B.R., Raun, E.S., Mitchell, P.D., Moon, R.D., Leslie, T.W., Fleischer, S.J., Abrahamson, M., Hamilton, K.L., Steffey, K.L., and Gray, M.E. 2010. “Areawide Suppression of European Corn Borer with BT Maize Reaps Savings to Non-Bt Maize Growers.” Science 330(6001): 222225.
Hyde, J., Martin, M., Preckel, P., and Edwards, R. 1999. “The Economics of Bt Com: Valuing Protection from the European Corn Borer.” Review of Agricultural Economics 21(2): 442454.
Keane, M.P. 1992. “A Note on Identification in the Multinomial Probit Model.” Journal of Business and Economics Statistics 10(2): 193200.
Keane, M.P. 1994. “A Computationally Practical Simulation Estimator for Panel Data.” Econometrica 62(1): 95116.
Kott, P.S. 1998. “Using the Delete-a-Group Jackknife Variance Estimator in NASS Surveys.” Research Report No. RD-98-01, National Agricultural Statistics Service, U.S. Department of Agriculture, Washington, D.C.
Kramer, M. 2005. “R2 Statistics for Mixed Models.” In Boyer, J.E. Jr., ed., Proceedings of the 17th Annual Kansas State University Conference on Applied Statistics in Agriculture. Manhattan, KS: Kansas State University Press.
Maddala, G.S. 1983. Limited Dependent and Qualitative Variables in Econometrics. Cambridge, UK: Cambridge University Press.
Magee, L. 1990. “R2 Measures Based on Wald and Likelihood Ratio Joint Significance Tests.” American Statistician 44(3): 250253.
Matuschke, I., and Qaim, M. 2009. “The Impact of Social Networks on Hybrid Seed Adoption in India.” Agricultural Economics 40(5): 493505.
McBride, W., and El-Osta, H. 2003. “Impacts of the Adoption of Genetically Engineered Crops on Farm Financial Performance.” Journal of Agricultural and Applied Economics 34(1): 175191.
Mitchell, P., Hurley, T., and Rice, M. 2004. “Is Bt Corn Really a Drag? Bt Corn Yield Drag and Yield Variance.” Faculty Paper Series No. FP 04-01, Department of Agricultural Economics, Texas A&M University, College Station, Texas.
Mungai, N.W., Motavalli, P.P., Nelson, K.A., and Kremer, R.J. 2005. “Differences in Yields, Residue Composition and N Mineralization Dynamics of Bt and non-Bt Maize.” Nutrient Cycling in Agroecosystems 73(1): 101109.
National Research Council (NRC). 2010. The Impact of Genetically Engineered Crops on Farm Sustainability in the United States. Washington, D.C.: The National Academies Press.
Pilcher, C.D., and Rice, M.E. 1998. “Management of European Corn Borer (Lepidoptera: Crambidae) and Corn Root-worms (Coleoptera: Chrysomelidae) with Transgenic Com: A Survey of Farmer Perceptions.” American Entomologist 44(1): 3644.
Pilcher, C.D., Rice, M.E., Higgins, R.A., Steffey, K.L., Hellmich, R.L., Witowski, J., Calvin, D., Ostlie, K.R., and Gray, M. 2002. “Biotechnology and the European Corn Borer: Measuring Historical Farmer Perceptions and Adoption of Transgenic Bt Corn as a Pest Management Strategy.” Journal of Economic Entomology 95(5): 878892.
Roodman, D. 2009. “Estimating Fully Observed Recursive Mixed-Process Models with cmp.” Working Paper No. 168, Center for Global Development, Washington, D.C.
U.S. Department of Agriculture. 2002. “Agricultural Chemical Usage 2002 Field Crops Summary.” National Agricultural Statistics Service, U.S. Department of Agriculture, Washington, D.C.
U.S. Department of Agriculture. 2006. “Agricultural Chemical Usage 2006 Field Crops Summary.” National Agricultural Statistics Service, U.S. Department of Agriculture, Washington, D.C.
Wilson, T., Rice, M., Tollefson, J., and Pilcher, C. 2005. “Transgenic Corn for Control of the European Corn Borer and Corn Rootworms: A Survey of Midwestern Farmers’ Practices and Perceptions.” Journal of Economic Entomology 98(2): 237247.

Keywords

Metrics

Altmetric attention score

Full text views

Total number of HTML views: 0
Total number of PDF views: 0 *
Loading metrics...

Abstract views

Total abstract views: 0 *
Loading metrics...

* Views captured on Cambridge Core between <date>. This data will be updated every 24 hours.

Usage data cannot currently be displayed