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

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  • Fernandez-Cornejo, Jorge
  • Wechsler, Seth James

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.

Suggested Citation

  • Fernandez-Cornejo, Jorge & Wechsler, Seth James, 2012. "Revisiting the Impact of Bt Corn Adoption by U.S. Farmers," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 41(3), pages 1-14, December.
    • Handle: RePEc:ags:arerjl:141671
    DOI: 10.22004/ag.econ.141671
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    References listed on IDEAS

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    Cited by:

    1. Perry, Edward D. & Moschini, GianCarlo, 2020. "Neonicotinoids in U.S. maize: Insecticide substitution effects and environmental risk," Journal of Environmental Economics and Management, Elsevier, vol. 102(C).
    2. Kaffine, Daniel T., 2019. "Microclimate effects of wind farms on local crop yields," Journal of Environmental Economics and Management, Elsevier, vol. 96(C), pages 159-173.
    3. Brown, Zachary S., 2017. "Voluntary programs to encourage refuges for pesticide resistance management: lessons from a quasi-experiment," CEnREP Working Papers 264974, North Carolina State University, Department of Agricultural and Resource Economics.
    4. Fernandez-Cornejo, Jorge & Nehring, Richard & Osteen, Craig & Wechsler, Seth James & Martin, Andrew & Vialou, Alex, 2014. "Pesticide Use in U.S. Agriculture: 21 Selected Crops, 1960-2008," Economic Information Bulletin 178462, United States Department of Agriculture, Economic Research Service.
    5. Petra Moser & Joerg Ohmstedt & Paul W. Rhode, 2015. "Patent Citations and the Size of the Inventive Step - Evidence from Hybrid Corn," NBER Working Papers 21443, National Bureau of Economic Research, Inc.
    6. Hudak, Michael, 2015. "Three studies on applying Positive Mathematical Programming and Bayesian Analysis to model US crop supply," ISU General Staff Papers 201501010800005844, Iowa State University, Department of Economics.
    7. Petra Moser & Joerg Ohmstedt & Paul M. Rhode, 2016. "Patent Citations - An Analysis of Quality Differences and Citing Practices in Hybrid Corn," Working Papers 16-05, New York University, Leonard N. Stern School of Business, Department of Economics.
    8. Greene, Catherine & Wechsler, Seth J. & Adalja, Aaron & Hanson, James, 2016. "Economic Issues in the Coexistence of Organic, Genetically Engineered (GE), and Non-GE Crops," Economic Information Bulletin 232929, United States Department of Agriculture, Economic Research Service.
    9. Jonas Kathage & Manuel Gómez-Barbero & Emilio Rodríguez-Cerezo, 2016. "Framework for assessing the socio-economic impacts of Bt maize cultivation," JRC Research Reports JRC103197, Joint Research Centre.
    10. Sung, Jae-hoon & Miranowski, John A., 2016. "Information technologies and field-level chemical use for corn production," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235858, Agricultural and Applied Economics Association.
    11. Nugzar Todua & Teona Gogitidze, 2017. "Marketing Research Of Attitudes Towards Genetically Modified Crops By Georgian Farmers," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 1, pages 69-76, February.
    12. Petra Moser & Joerg Ohmstedt & Paul W. Rhode, 2018. "Patent Citations—An Analysis of Quality Differences and Citing Practices in Hybrid Corn," Management Science, INFORMS, vol. 64(4), pages 1926-1940, April.
    13. Skevas, T. & Swinton, S.M. & Meehan, T.D. & Kim, T.N. & Gratton, C. & Egbendewe-Mondzozo, A., 2014. "Integrating agricultural pest biocontrol into forecasts of energy biomass production," Ecological Economics, Elsevier, vol. 106(C), pages 195-203.
    14. Brown, Zachary S. & Connor, Lawson & Rejesus, Roderick M. & Yorobe Jr., Jose M., 2018. "Bioeconomic feedbacks from large-scale adoption of transgenic pesticidal corn in the Philippines," CEnREP Working Papers 272080, North Carolina State University, Department of Agricultural and Resource Economics.
    15. Brown, Zachary, 2016. "Voluntary programs to encourage compliance with refuge regulations for pesticide resistance management: results from a quasi-experiment," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 237333, Agricultural and Applied Economics Association.
    16. Fernandez-Cornejo, Jorge & Livingston, Michael J. & Mitchell, Lorraine & Wechsler, Seth, 2014. "Genetically Engineered Crops in the United States," Economic Research Report 164263, United States Department of Agriculture, Economic Research Service.

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    Farm Management; Production Economics;

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