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A Preliminary Economic Assessment Of Roundup Ready Soybeans In Mississippi

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Author Info

  • Couvillion, Warren C.
  • Kari, Fatimah
  • Hudson, Darren
  • Allen, Albert J.

Abstract

The advent of genetically altered seed has had a revolutionary effect on the cotton, soybean, and corn seed industries. The basic premise for the use of these seed are to reduce costs through lower applications of chemicals and savings on trips through the field, thus, lowering production costs. Seed companies, however, charge a premium and a fee for use of the seed. This paper compares the costs associated with conventional and roundup ready soybeans. Data were collected from the ACost of Production@ survey of Mississippi producers that is administered by Mississippi State University through the National Agricultural Statistics Service. The survey is a random sample of producers fields that allows for a derivation of the cost of production for each field. The study suggests that while costs reductions can be achieved, the cost savings are offset by the technology fees. The study is based on limited data and points to the need for continued research on the long-run profitability of genetically altered seed to the soybean producers of Mississippi.

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Bibliographic Info

Paper provided by Mississippi State University, Department of Agricultural Economics in its series Research reports with number 15783.

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Date of creation: 2000
Date of revision:
Handle: RePEc:ags:missrr:15783

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Postal: Box 9755, Mississippi State, MS 39762-9755
Phone: (601) 325-2750
Fax: (601) 325-8777
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Web page: http://www.agecon.msstate.edu/
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Related research

Keywords: soybeans; genetically altered seed; roundup ready; costs of production; Production Economics;

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Cited by:
  1. Hareau, Guy Gaston & Mills, Bradford F. & Norton, George W., 2005. "Arroz Transgénico en Uruguay: un modelo de simulación para estimar los beneficios económicos potenciales," Serie Tecnica 121683, Instituto Nacional de Investigacion Agropecuaria (INIA).
  2. Kolady, Deepthi & Lesser, William H., 2006. "Is it Feasible to Provide Genetically Modified Crops to Small Farmers on Preferential Terms? : An Ex Ante Analysis of Bt Eggplant in India," 2006 Annual meeting, July 23-26, Long Beach, CA 21130, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  3. Hareau, Guy Gaston & Mills, Bradford F. & Norton, George W. & Bosch, Darrell J., 2002. "The Economic Impact Of Genetically Modified Organisms In Small Developing Countries," 2002 Annual meeting, July 28-31, Long Beach, CA 19891, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
  4. Marra, Michele C. & Pardey, Philip G. & Alston, Julian M., 2002. "The payoffs to agricultural biotechnology: an assessment of the evidence," EPTD discussion papers 87, International Food Policy Research Institute (IFPRI).
  5. Gedikoglu, Haluk & McCann, Laura M.J., 2009. "Disadoption of Agricultural Practices by Livestock Farmers," 2009 Annual Meeting, July 26-28, 2009, Milwaukee, Wisconsin 49404, Agricultural and Applied Economics Association.

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