January, 2010
AgBioForum Volume 12 Number 3 & 4
Overview:
Herbicide Resistant Crops--Diffusion, Benefits, Pricing, and Resistance Management
G.B. Frisvold, T.M. Hurley, & P.D. Mitchell
1. Simultaneous Diffusion of Herbicide Resistant Cotton and Conservation Tillage
G.B. Frisvold, A. Boor, & J.M. Reeves
This study used state-level data from 1997-2002 to econometrically estimate factors explaining the diffusion of two technologies by US cotton producers: herbicide-resistant (HR) cotton seed varieties and conservation tillage. A simultaneous equation model is estimated to examine complementarities between the two technologies. Based on results from a three-stage least squares model, the null hypothesis that diffusion of one technology is independent of diffusion of the other is rejected. Elasticities calculated at sample means indicate that a 1% increase in a state's adoption rate for HR cotton increases the state's adoption rate for conservation tillage by 0.48%. A 1% increase in the adoption rate of conservation tillage increases the adoption rate of HR cotton by 0.16%.
2. Adoption of Conservation-Tillage Practices and Herbicide-Resistant Seed in Cotton Production
S. Banerjee, S.W. Martin, R.K. Roberts, J.A. Larson, R.J. Hogan, J.L. Johnson, K.W. Paxton, & J.M. Reeves
Agricultural Resource Management Survey data for 2003 were used to estimate logit models for adoption of conservation-tillage practices and herbicide-resistant/stacked-gene cottonseed in the United States. The specification allowed for the possibility that adoption of one technology could influence adoption of the other. However, the null hypothesis that the technologies are adopted independently could not be rejected. The coefficient for herbicide-resistant cotton adoption was positive in the conservation-tillage adoption equation, but significant only at the 5.1% (10.2%) level in one- (two-) tailed tests. The coefficient for conservation-tillage adoption was positive in the herbicide-resistant seed adoption equation, but significant only at the 7% (14%) level in one- (two-) tailed tests. Prior adoption of no-till had a significant, positive impact on the conservation-tillage adoption. Compared to Delta states, Southern Plains and Western states were less likely to adopt the technology. Some practical limitations of analyzing complex survey data with limited research access are discussed.
3. Characteristics of Herbicides and Weed-Management Programs Most Important to Corn, Cotton, and Soybean Growers
T.M Hurley, P.D. Mitchell, & G.B. Frisvold
The introduction and rapid adoption of herbicide-tolerant crops has renewed interest in better understanding the characteristics of herbicides and weed-management programs that are important to growers besides profitability. This study explores the importance of 13 characteristics, including characteristics that influence profitability, using data from a telephone survey of 1,205 corn, cotton, and soybean growers. We estimate a multivariate probit model to explore how the importance of these 13 characteristics varies with observable grower and farm-operation differences. Factor analysis based on the multivariate probit error correlations is conducted to gain further insight into the types of distinctions growers make between these 13 characteristics. Results show that growers rate characteristics such as consistency of control, crop safety, and family and employee health as very important more often than herbicide cost. The factor analysis suggests that health and environmental concerns, yield concerns, and herbicide-application concerns capture important unobservable preferences that influence grower decisions. These results imply that attempts to decompose the benefits of herbicide-tolerant crops by assigning unique values to specific characteristics that influence grower decisions can be confounded due to the difficulty in developing unique indirect measures of directly unobservable grower preferences.
4. Weed Management Costs, Weed Best Management Practices, and the Roundup Ready Weed Management Program
T.M. Hurley, P.D. Mitchell, & G.B. Frisvold
Roundup Ready (RR) crops have been widely adopted because they provide significant benefits to growers, but glyphosate-resistant weeds threaten the sustainability of these benefits. Weed best-management practices (BMPs) help manage resistance, but could increase weed-control costs, limiting their adoption. We use survey results to explore how adoption of BMPs affects weed-management costs in corn, cotton, and soybeans, controlling for farmer and regional characteristics. More experienced growers had lower weed-control costs. Cleaning equipment, using herbicides with different modes of action, and using supplemental tillage are BMPs associated with increased costs for some crops, which may explain why they are less widely adopted than other BMPs. However, growers commonly use other weed BMPs that also increase costs. Regression results suggest adoption of RR crops reduces weed-control costs and that weed scouting reduces costs for cotton and soybean growers. Use of residual herbicides was associated with higher costs for cotton growers, but not for corn or soybean growers. Rotating RR and non-RR crops on the same acreage was associated with higher costs for soybeans, but not for corn or cotton growers.
5. Effects of Weed Resistance Concerns and Resistance Management Practices on the Value of Roundup Ready Crops
T.M. Hurley, P.D. Mitchell, & G.B. Frisvold
This study estimates grower benefits of Roundup-Ready (RR) weed management programs and how weed-resistance concerns and resistance-management practices affect those benefits. Direct survey methods were used to elicit grower valuation of pecuniary and non-pecuniary benefits. We illustrate a hedonic strategy combined with principal component analysis to address part-whole bias present in previous assessments of non-pecuniary benefits of RR crops. Based on a national telephone survey of 1,205 growers, the mean reported benefit of RR relative to conventional seed varieties was more than $20 per acre for corn and soybean growers and about $50 per acre for cotton growers. Growers concerned about weed resistance reported lower benefits, but this effect was statistically significant only for cotton growers, reducing their perceived benefits by about 20% ($10 per acre). Use of a residual herbicide and annual rotation of herbicides are two practices to reduce the risk of weed resistance. Corn growers using residual herbicides perceived lower, though still positive, benefits. Soybean growers rotating herbicides perceived benefits to be higher. Growers more concerned about herbicide application costs and crop safety report lower benefits, while those more concerned about the flexibility of timing herbicide applications report higher RR benefits.
6. Genetically Modified Crops and Household Labor Savings in US Crop Production
J.G. Gardner, R.F. Nehring, & C.H. Nelson
In spite of widespread adoption, there is mixed evidence as to whether adopting genetically modified (GM) crops increases farm welfare. One possible reason for widespread adoption is the labor savings. Using a treatment effect model we estimate the time savings associated with adopting a GM crop. We find a significant savings in household labor for soybeans, but not for other crops.
7. Potential of Herbicide-Resistant Rice Technologies for Sub-Saharan Africa
J. Rodenburg & M. Demont
Weed-inflicted yield losses in rice equate to half the current rice imports in sub-Saharan Africa (SSA) and African rice farmers have a limited range of effective and affordable weed management technologies. Herbicide-resistance (HR) technologies may have the labor-saving benefits of conventional chemical control without the concomitant phytotoxicity risks. To date, HR rice received only marginal attention in the context of SSA. Here, we review the literature on HR technologies and discuss their potential value for rice ecosystems in Africa. We conclude that HR technologies would provide technically sound solutions for the control of important yield-reducing weeds, such as wild rice in irrigated systems and rainfed lowlands and parasitic weeds in uplands. However, with respect to implementation, these technologies would require effective seed and microcredit systems as much as interested agro-industries. Public-private partnerships and government intervention may provide shortcuts where such conditions are not yet met.
8. Pricing of Herbicide Tolerant Soybean Seeds: A Market Structure Approach
G. Shi, J-P. Chavas, & K.W. Stiegert
This article investigates the effects of supply-side factors on the pricing of soybean seeds in the United States. We discuss recent trends that have shaped the US soybean seed market. Using an econometric model, we also analyze the impacts on soybean seed prices of changes in market size, market concentration, and vertical organization (including vertical integration and biotech trait licensing). We simulate the effects of recent market changes on the pricing of different seed types. The analysis finds that increased within-market concentration tends to enhance seed price in that market. However, in a multi-market framework, the simulations show that the presence of complementarity in production and distribution mitigates these price enhancing effects.
9. Corporate Pricing Strategies with Heterogeneous Adopters: The Case of Herbicide-Resistant Sugar Beet
K. Dillen, M. Demont, & E. Tollens
In ex-ante impact assessment of proprietary seed technologies, the assessor operates under scarce and imperfect data. No market has been established for the new technology and adoption has yet to take place. Recently, the scholarly literature has focused on the importance of accounting for heterogeneity among potential adopters to avoid homogeneity bias in the impact estimates. In this article, we argue that incorporation of heterogeneity in the corporate pricing strategy of the innovation is also needed to avoid a second bias in the welfare estimatesópricing bias. Therefore, a framework is developed which explicitly incorporates heterogeneity of proprietary seed technology valuation among adopters in both the pricing decision and the impact assessment. The results explain the tendency of innovators to engage in third-degree price discrimination if the market structure discourages arbitrage. Finally, the model is applied on the case study of herbicide-resistant sugar beet in the EU-27.
10. Glyphosate-Resistant Crops and Weeds: Now and in the Future
S.O. Duke & S.B. Powles
Glyphosate-resistant (GR) crops represent more than 80% of the 120 million ha of transgenic crops grown annually worldwide. GR crops have been rapidly adopted in soybean, maize, cotton, canola, and sugarbeet in large part because of the economic advantage of the technology, as well as the simple and superior weed control that glyphosate delivers. Furthermore, the GR crop/glyphosate technology is generally more environmentally benign than the weed management technologies that it replaced. In the Americas, except for Canada, adoption has meant continuous and intense selection pressure with glyphosate, resulting in evolution of GR weeds and shifts to weed species that are only partially controlled by glyphosate. This development is jeopardizing the benefits of this valuable technology. New transgenic crops with resistance to other herbicide classesóin some cases coupled with glyphosate resistanceówill be introduced soon. If used wisely, these tools can be integrated into resistance management and prevention strategies. Greater diversity in weed management technologies is badly needed to preserve the utility of the GR crop/glyphosate technology.
11. Managing the Herbicide Resource: An Evaluation of Extension on Management of Herbicide-Resistant Weeds
R.S. Llewellyn & D.J. Pannell
The threat of herbicide-resistant weeds to crop production makes sustainable weed and herbicide management an important issue for agricultural extension agencies throughout the world. In this study, we examined the effectiveness of an intensive training workshop in modifying the weed-management-related perceptions and adoption intentions of farmers. We found that the extension activity had significant impacts on farmers' perceptions about several aspects of the herbicide resource management decision, including the speed of resistance development, the potential for a population of herbicide-resistant weeds to return to herbicide-susceptibility, and the economic value of several treatments. As a consequence, the workshop appears to have altered the adoption intentions of a significant number of participating farmers, including adoption of a strategy to prevent development of resistance to the herbicide glyphosate. We argue that extension can be more effective if it targets grower perceptions identified as being influential in the adoption decision, particularly if those perceptions are known to be inaccurate.
12. Adoption of Best Management Practices to Control Weed Resistance by Corn, Cotton, and Soybean Growers
G.B. Frisvold, T.M. Hurley, & P.D. Mitchell
This study examined adoption of 10 best management practices (BMPs) to control weed resistance to herbicides using data from a survey of more than 1,000 US corn, cotton, and soybean growers. Count-data models were estimated to explain the total number of BMPs frequently practiced. Ordered-probit regressions were used to explain the frequency of individual BMP adoption. Growers practicing a greater number of BMPs frequently had more education, but less farming experience; grew cotton; expected higher yields relative to the county average; and farmed in counties with a lower coefficient of variation (CV) for yield of their primary crop. Yield expectations and variability were significant predictors of adoption of individual BMPs. Most growers frequently adopted the same seven BMPs. Extension efforts may be more effective if they targeted the three practices with low adoption rates. Counties with a high-yield CV would be areas to look for low BMP adoption.
REGULAR ISSUE
13. Stakeholder Positions Toward GM Food: the Case of Vitamin A Biofortified Cassava in Brazil
C. Gonzalez, J. Garcia, & N. Johnson
This article examines the factors that affect stakeholders' positions toward genetically modified (GM) crops in Brazil, both in general and in the case of GM cassava in particular. Perceptions about the benefits of second-generation GM crops that have direct benefits for consumer are analyzed, and the tradeoffs that stakeholders make between the advantages of GM crops in terms of food quality and their potential risks in other areas as the environment are assessed. Using the Multiple Correspondence Analysis and cluster approaches, it was revealed that most of the stakeholders have positive attitudes toward GM crops. A high percentage agrees with the introduction of a GM cassava; however, a significant number of stakeholders are against this introduction because Brazil has other nutritional sources to combat Vitamin A deficiency. In addition, the country is a center of origin and diversity for cassava, which increases potential environmental risk associated with GMO release.
14. Predicted Willingness of Irish Farmers to Adopt GM Technology
C. Keelan, F.S. Thorne, P. Flanagan, C. Newman, & E. Mullins
In this article, we use a probit model to assess the factors that will influence the decision of Irish farmers to adopt genetically modified (GM) technology should they be given a choice in the near future of selecting between GM and non-GM varieties of crops. The results from the probit model indicate that among the likely early adopters of GM technology in Ireland are farmers with large farm acreage who are specialist crop farmers and who have formal agricultural education together with access to high-quality soils. Contrary to expectations and theory, the farmer's age was insignificant in the final specification of the model. Neither tenure nor profitability had any influence in determining the likelihood of adoption once farm size was accounted for, indicating that farm size may dominate other farm-level characteristics.
15. Adoption Patterns of Herbicide-Tolerant Soybeans in Argentina
R. Finger, M. Hartmann, & M. Feitknecht
The adoption of herbicide-tolerant soybeans (HTS) in Argentina was a very rapid process, as HTS covered virtually all of the area under soybean cultivation less than 10 years after their introduction in 1996. In our analysis, we focus on the patterns of HTS adoption. Using a survey-based analysis, we compare early and late adopters in the subdivisions of Pergamino and Salto (in the northeast of the Argentinean province of Buenos Aires) with regard to their expectations related to HTS adoption, as well as the characteristics of the farm and farmers. Moreover, we analyze the role of seed companies in the adoption and diffusion processes. This study shows that the expectations of cost reduction and easier crop management were the main drivers for farmers in the adoption of HTS. Furthermore, our results suggest that seed companies played a major role in providing farmers with their first information on HTS and their role has been influential for the farmers' adoption decisions.
16. Perceived Consequences of Herbicide-Tolerant and Insect-Resistant Crops on Integrated Pest Management Strategies in the Western United States: Results of an Online Survey
J. Harrington, P.F. Byrne, F.B. Peairs, S.J. Nissen, P. Westra, P.C. Ellsworth, A. Fournier, C.A. Mallory-Smith, R.S. Zemetra, & W.B. Henry
We conducted an online survey to assess the potential effects of herbicide-tolerant (HT) and insect-resistant (IR) crops on integrated pest management (IPM) practices in the Western United States For HT crops, participants perceived a decrease in several IPM practices, including crop and herbicide rotations and the combined use of multiple weed control strategies. The most serious potential consequences were considered to be a shift in weed species composition and development of herbicide-resistant weeds. For IR crops, respondents perceived a beneficial reduction in application of both broad-spectrum and selective insecticides. The most significant issues for IR crops were believed to be potential development of target pest resistance and difficulties with management of insect refuges. The survey results support the need for continued emphasis on comprehensive strategies in IPM education programs to prolong the usefulness of HT and IR crops.
17. Efficiency Analysis of the US Biotechnology Industry: Clustering Enhances Productivity
M-K. Kim, T.R. Harris, & S. Vusovic
This article attempts to identify the factors affecting location of biotechnology firms in the United States. To achieve this goal, the regional efficiency in the biotech industry is measured using the Data Envelopment Analysis (DEA). We investigate the causal structure of the regional biotech industry performance and a set of other locational variables using the Directed Acyclic Graph (DAG). Clustering the biotech industry directly enhances the regional industry efficiency, and the high-tech infrastructure and regional income directly affect the clustering the biotech industry.
18. Can Cooperative Membership and Participation Affect Adoption Decisions? Issues for Sustainable Biotechnology Dissemination
U.M. Nwankwo, K.J. Peters, & W. Bokelmann
Biotechnology has become the dominate technology in the agricultural environment globally, possessing the capacity to address issues related to food insecurity and low productivity. Developing countries therefore cannot afford to be left behind. Despite how beneficial biotechnology is portrayed, the major task hinges on how to ensure that farmers in developing countries adopt it amid various controversies and perceptions surrounding its application. This article studies the effects of cooperative membership and participation on adoption decision of agricultural innovations in the states of Kaduna and Borno in Nigeria. A semi-structured questionnaire was used to obtain empirical data from 1,120 respondents. Results revealed that the majority of farmers belonged to cooperative organizations due to several reasons, including the need for information and social capital. Participation in cooperative activities was frequent and information disseminated was adjudged relevant to members' needs. The level of trust ascribed to information from cooperative activities was higher than other sources. Farmers became aware of recently adopted innovations through cooperatives. Willingness to adopt biotechnology was higher if disseminated through cooperatives than other channels. Intuitively, disseminating biotech information through cooperatives will ensure increased awareness levels in less time than other approaches.
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