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Valuing the Roundup Ready® Soybean Weed Management Program

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  • Aultman, Stephen
  • Hurley, Terrance M.
  • Mitchell, Paul D.
  • Frisvold, George B.

Abstract

This study examines soybean grower adoption of the Roundup Ready® (RR) weed management program with and without a residual herbicide application, and grower concerns regarding weed resistance to herbicides using telephone survey data from of 357 growers in 2007. It also estimates the pecuniary and non-pecuniary benefits enjoyed by growers from their RR program. The results indicate that soybean growers planned to treat 29 percent of their RR acres with a residual herbicide in 2008. More than half (53%) of the growers survey were concerned about weed resistance. The estimated expected benefit of the RR program in 2008 was $10.17 per acre, which translates into about $727 million with 75.7 million acres of soybean in the U.S. in 2008. The estimated value per acre of the RR program with and without a residual was $8.78 and $12.83. The estimates also suggest that if growers were not using residual herbicides with the RR program, their benefits would be 28.4% lower. Alternatively, if all growers were required to use residual herbicides on their RR acres, the value of the RR program would be 46% lower. Simply increasing grower weed resistance concerns could increase residual herbicide use on RR acres by up to 7%. The same increase in residual herbicide use could be accomplished by decreasing the cost of residual herbicide applications on RR acres by $0.81 per acre.

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File URL: http://purl.umn.edu/49342
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Bibliographic Info

Paper provided by Agricultural and Applied Economics Association in its series 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin with number 49342.

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Date of creation: 2009
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Handle: RePEc:ags:aaea09:49342

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Keywords: Roundup Ready; Soybean; Glyphosate; Weed Resistance; Benefits; Crop Production/Industries; Demand and Price Analysis; Farm Management; Research and Development/Tech Change/Emerging Technologies;

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  1. Alston, Julian M. & Hyde, Jeffrey & Marra, Michele C. & Mitchell, Paul D., 2003. "An Ex Ante Analysis of the Benefits from the Adoption of Corn Rootworm Resistant, Transgenic Corn Technology," 2003 Conference (47th), February 12-14, 2003, Fremantle, Australia 57828, Australian Agricultural and Resource Economics Society.
  2. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economics Reports 33957, United States Department of Agriculture, Economic Research Service.
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