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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
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    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 profits, yields and seeding rates. However, the results of this analysis suggest that Bt adoption is not significantly related to insecticide use. This result appears to be related to the fact that insect infestation levels were lower in 2005 than they were in earlier years.

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    File URL: http://purl.umn.edu/103327
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    Bibliographic Info

    Paper provided by Agricultural and Applied Economics Association in its series 2011 Annual Meeting, July 24-26, 2011, Pittsburgh, Pennsylvania with number 103327.

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    Date of creation: Jul 2011
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    Handle: RePEc:ags:aaea11:103327

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    Related research

    Keywords: Genetically engineered corn; insect resistance; Bt corn; insecticide use; technology adoption; yields; Production Economics; Research and Development/Tech Change/Emerging Technologies;

    This paper has been announced in the following NEP Reports:

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    1. McBride, William D. & Books, Nora, 2000. "Survey Evidence On Producer Use And Costs Of Genetically Modified Seed," Proceedings:Transitions in Agbiotech: Economics of Strategy and Policy, June 24-25, 1999, Washington, D.C. 26009, Regional Research Project NE-165 Private Strategies, Public Policies, and Food System Performance.
    2. Lorenzo Cappellari & Stephen P. Jenkins, 2003. "Multivariate probit regression using simulated maximum likelihood," United Kingdom Stata Users' Group Meetings 2003 10, Stata Users Group.
    3. Leung, Siu Fai & Yu, Shihti, 1996. "On the choice between sample selection and two-part models," Journal of Econometrics, Elsevier, vol. 72(1-2), pages 197-229.
    4. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economics Reports 33957, United States Department of Agriculture, Economic Research Service.
    5. McBride, William D. & El-Osta, Hisham S., 2002. "Impacts Of The Adoption Of Genetically Engineered Crops On Farm Financial Performance," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 34(01), April.
    6. 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 255-98, January.
    7. Sara Savastano & Pasquale Lucio Scandizzo, 2010. "The Adoption and Diffusion of GM Crops in USA: A Real Option Approach," CEIS Research Paper 169, Tor Vergata University, CEIS, revised 20 Jul 2010.
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