|99-713 Project Manager: J. M. Reeves|
THE EFFECTS OF BT COTTON ADOPTION: REGIONAL DIFFERENCES IN PRODUCER COSTS AND RETURNS
George Frisvold, University of Arizona
From the beginning of this study, the title aptly describes what has occurred. Each year a varying aspect of evaluating Bt cotton has been conducted. In 2012 of this study, a comprehensive review of the literature on the size and distribution of net gains from the adoption of Bt cotton (and other transgenic crops including herbicide tolerant cotton) to assess what factors affect the distribution of gains between producers, consumers, and technology suppliers was conducted. Early studies that ignored output price effects find that producers capture the majority of the gains from Bt cotton. Accounting for reductions in output price (resulting from greater cotton output), shifts gains away from producers toward technology suppliers and consumers. Loan deficiency payments effectively insulate U.S. producers from negative effects of falling prices. Trade models suggest that there are high costs to cotton producing countries that do not adopt Bt cotton. Countries overall benefit more the more widely Bt cotton is adopted unless (a) they do not also adopt Bt cotton and (b) they export nearly all of their cotton.
This project develops a chapter titled "Aggregate Effects: Adopters and Non-adopters; Investors, Consumers," to be included in the Handbook on Agriculture, Biotechnology and Development edited by Stuart J. Smyth, David Castle and Peter W. B. Phillips of the Department of Bioresource Policy, Business and Economics at the University of Saskatchewan. Edward Elgar Press will publish the Handbook in 2013.
The objective of this book is to provide the reader with a diverse, but concentrated, perspective of the global application of biotechnology to plant agriculture. Readers will be able to gain rich insights into specific aspects of agricultural biotechnology (i.e., impacts of GM papaya) but also be provided with the overarching structure that governs the trade and regulation of agricultural biotechnology processes (i.e., the role of the WTO). In providing these perspectives, the reader will be able to compare and contrast the results within the major sections of the handbook. By the end of the book, the reader will be left with a detailed knowledge of both the products and the processes that are part of, and important to, agricultural biotechnology.
In 2013, a different aspect of Bt cotton will be evaluated.
|Project Year: 2012|
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