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Farm-Level Effects Of Adopting Herbicide-Tolerant Soybeans In The U.S.A

Author

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  • Fernandez-Cornejo, Jorge
  • Klotz-Ingram, Cassandra
  • Jans, Sharon

Abstract

This paper estimates the on-farm impacts of adopting herbicide-tolerant soybean on herbicide use, yields, and farm profits, using an econometric model that corrects for self-selection and simultaneity and is consistent with profit maximization. The model is estimated using nationwide farm-level survey data for 1997. Given that the use of herbicide-tolerant soybeans involves the substitution of a particular herbicide - primarily glyphosate - for other herbicides, we explicitly consider this substitution process in the model.

Suggested Citation

  • Fernandez-Cornejo, Jorge & Klotz-Ingram, Cassandra & Jans, Sharon, 2002. "Farm-Level Effects Of Adopting Herbicide-Tolerant Soybeans In The U.S.A," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), pages 1-15, April.
    • Handle: RePEc:ags:joaaec:15522
    DOI: 10.22004/ag.econ.15522
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    References listed on IDEAS

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    1. JunJie Wu & Bruce A. Babcock, 1998. "The Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(3), pages 494-511.
    2. Fernandez-Cornejo, Jorge & Beach, E. Douglas & Huang, Wen-Yuan, 1994. "The Adoption of IPM Techniques By Vegetable Growers in Florida, Michigan and Texas," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 26(1), pages 158-172, July.
    3. Feder, Gershon & Just, Richard E & Zilberman, David, 1985. "Adoption of Agricultural Innovations in Developing Countries: A Survey," Economic Development and Cultural Change, University of Chicago Press, vol. 33(2), pages 255-298, January.
    4. Thomas M. Burrows, 1983. "Pesticide Demand and Integrated Pest Management: A Limited Dependent Variable Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 65(4), pages 806-810.
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    Cited by:

    1. Mingming Liu & Dongmei Li, 2010. "An Analysis on Total Factor Productivity and Influencing Factors of Soybean in China," Journal of Agricultural Science, Canadian Center of Science and Education, vol. 2(2), pages 158-158, May.
    2. Edward D. Perry & GianCarlo Moschini & David A. Hennessy, 2016. "Testing for Complementarity: Glyphosate Tolerant Soybeans and Conservation Tillage," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 98(3), pages 765-784.
    3. Oliver Musshoff & Norbert Hirschauer, 2011. "A behavioral economic analysis of bounded rationality in farm financing decisions," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 62-83, May.
    4. Wechsler, Seth J. & McFadden, Jonathan R. & Smith, David J., 2016. "Into the Weeds: A Structural Model of Herbicide Demand and Glyphosate Resistance on U.S. Corn Farms," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235998, Agricultural and Applied Economics Association.
    5. Joshua D. Detre & Hiroki Uematsu & Ashok K. Mishra, 2011. "The influence of GM crop adoption on the profitability of farms operated by young and beginning farmers," Agricultural Finance Review, Emerald Group Publishing Limited, vol. 71(1), pages 41-61, May.
    6. Sadashivappa, Prakash & Qaim, Matin, 2009. "Effects of Bt Cotton in India During the First Five Years of Adoption," 2009 Conference, August 16-22, 2009, Beijing, China 49947, International Association of Agricultural Economists.
    7. Seixas, Renato & Silveira, José Maria, 2014. "More of Less isn’t Less of More: Assessing Environmental Impacts of Genetically Modified Seeds in Brazilian Agriculture," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 170226, Agricultural and Applied Economics Association.
    8. Gouse, Marnus, 2014. "Assessing the Value of Glyphosate in the South African Agricultural Sector," Working Papers 206520, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    9. Wossink, Ada & Denaux, Zulal S., 2006. "Environmental and cost efficiency of pesticide use in transgenic and conventional cotton production," Agricultural Systems, Elsevier, vol. 90(1-3), pages 312-328, October.
    10. Frisvold, George, 2010. "Resistance Management and Sustainable Use of Agricultural Biotechnology," 14th ICABR Conference, June 16-18, 2010, Ravello, Italy 188091, International Consortium on Applied Bioeconomy Research (ICABR).
    11. Areal, Francisco J. & Riesgo, Laura & Gómez-Barbero, Manuel & Rodríguez-Cerezo, Emilio, 2012. "Consequences of a coexistence policy on the adoption of GMHT crops in the European Union," Food Policy, Elsevier, vol. 37(4), pages 401-411.
    12. Qiao, Fangbin, 2015. "Fifteen Years of Bt Cotton in China: The Economic Impact and its Dynamics," World Development, Elsevier, vol. 70(C), pages 177-185.
    13. Schimmelpfennig, David & Ebel, Robert, 2016. "Sequential Adoption and Cost Savings from Precision Agriculture," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 41(01), pages 1-19, January.

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