Marketing Mechanisms In Gm Grains And Oilseeds

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Marketing Mechanisms In Gm Grains And Oilseeds

Author Info

Maxwell, Brett J.
Wilson, William W.
Dahl, Bruce L.

Abstract

A number of challenges exist for genetically modified (GM) crop development at the production level. Contract strategies can resolve these challenges. Contracts can be designed to induce legal adoption of GM wheat by varying technology fees, violation detection, and penalties. The primary objective of this research is to analyze contracting strategies to determine terms to minimize technology agreement violation and to induce legal adoption of GM wheat. A simulation model of a crop budget for Hard Red Spring wheat was developed. Results illustrate that contracts can be designed to induce desired behavior. Technology fee, probability of detection, and the level of non-GM premium were the most notable factors influencing adoption decisions.

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Paper provided by North Dakota State University, Department of Agribusiness and Applied Economics in its series Agribusiness & Applied Economics Report with number 23639.

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Date of creation: 2004
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Handle: RePEc:ags:nddaae:23639

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