Bt corn: Why is it so popular?
The researchers found, “this study’s findings suggest that Bt seed use increases profits, yields, and seed demand. More specifically, the elasticity results show that a 10 percent increase in the probability of adoption is associated with a 2.3 percent increase in profits, a 2.3 percent (3.44 bushels/acre) increase in yields, and a 2.1 percent increase in seed demand.” They report little statistically significant impact on insecticide demand, connected to the fact that 90 percent of farmers did not use insecticides, and when they do, their experience is expected to be profitable. And the researchers add, “The economic impacts of adopting GE crops vary with pest infestations, seed premiums, and prices of alternative pest control programs.”
Survey results indicate that, on average, variable profits were $118 per acre higher for adopters than for non-adopters, corn yields were 17 bushels per acre higher for adopters than for non-adopters, seed demand was 0.03 bushels per acre higher for adopters than for non-adopters, and insecticide demand was at a very low level for both adopters and non-adopters. Analysis confirms that Bt adoption is positively associated with increased profits, yields and seeding rates. However, Bt adoption is not significantly related to insecticide use.
Source: FarmGate blog