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Market Impacts of Adopting Herbicide-Resistant Rice in the Southern United States

Published online by Cambridge University Press:  28 April 2015

Frank H. Fuller ,
Mamane M. Annou  and
Eric J. Wailes
Frank H. Fuller
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
Mamane M. Annou
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
Eric J. Wailes
Affiliation:
Department of Agricultural Economics and Agribusiness, University of Arkansas, Fayetteville, AR
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Abstract

Herbicide-resistant (HR) rice varieties offer U.S. rice producers a powerful tool for control of red rice infestations. However, improved weed control can shorten crop rotations and boost yields, resulting in expanded rice production and lower domestic market prices. Declining market returns diminish the benefits of HR rice adoption and substantially reduce net returns for nonadopters. More competitive prices increase U.S. rice exports, causing a slight decline in world rice prices. The dependence of the rice marketing loan program on world prices prevents loan deficiency payments from adequately offsetting producers' market revenue losses. U.S. consumers gain from lower rice prices.

Keywords

biotechnologycrop rotationherbicide resistantred ricericesimulation modelstechnology adaptationQ11Q16Q18O33C53
Type
Articles
Information
Journal of Agricultural and Applied Economics , Volume 35 , Issue 1 , April 2003 , pp. 185 - 193
Copyright
Copyright © Southern Agricultural Economics Association 2003

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