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The Effect of Biotechnology and Biofuels on U.S. Corn Belt Cropping Systems: Updated Version

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  • Fausti, Scott W.
  • Van der Sluis, Evert
  • Qasmi, Bashir A.
  • Lundgren, Jonathan

Abstract

The effects of transgenic crop and federal biofuel policy on state-level cropping patterns in the Corn Belt region are investigated (2000-2012). The literature links the expansion of corn acreage to the supplanting of small grain and hay acreage in this region. Empirical evidence generated by a random intercept model with fixed effects indicates that the intensification of corn acres planted was positively impacted by biotech advancements in energy and agriculture. This suggests producers are moving away from diverse cropping patterns and the rotational practices associated with a diverse crop planting strategy. However, the empirical evidence suggests that the effects of these biotech advancements on producer planting decisions are heterogeneous across states. Thus, future policy changes affecting producer corn production decisions will not be uniform across States.

Suggested Citation

  • Fausti, Scott W. & Van der Sluis, Evert & Qasmi, Bashir A. & Lundgren, Jonathan, 2014. "The Effect of Biotechnology and Biofuels on U.S. Corn Belt Cropping Systems: Updated Version," Economics Staff Papers 168202, South Dakota State University, Department of Economics.
    • Handle: RePEc:ags:sdsusp:168202
    DOI: 10.22004/ag.econ.168202
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    References listed on IDEAS

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    1. Van der Sluis, Evert & Diersen, Matthew A. & Dobbs, Thomas L., 2002. "Agricultural Biotechnology: Farm-Level, Market, And Policy Considerations," Journal of Agribusiness, Agricultural Economics Association of Georgia, vol. 20(1), pages 1-16.
    2. Wallander, Steven & Claassen, Roger & Nickerson, Cynthia J., 2011. "The Ethanol Decade: An Expansion of U.S. Corn Production, 2000-09," Economic Information Bulletin 117982, United States Department of Agriculture, Economic Research Service.
    3. Cai, Xiaowei & Stiegert, Kyle W., 2014. "Market Analysis of Ethanol Capacity," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 17(1), pages 1-12, February.
    4. Cap, Eugenio & Malach, Valeria, 2012. "The Changing Patterns In Land Allocation To Soybeans And Maize In Argentina And The Americas And The Role Of Gm Varieties. A Comparative Analysis," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126376, International Association of Agricultural Economists.
    5. Fernandez-Cornejo, Jorge & McBride, William D., 2002. "Adoption Of Bioengineered Crops," Agricultural Economic Reports 33957, United States Department of Agriculture, Economic Research Service.
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