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Does On-Farm quality Assurance Pay? A Cost-Benefit Analysis of the GrainSafe Program

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Author Info

  • Umit Karaca

    ()
    (Department of Agricultural and Biological Enginering, College of Agriculture, Purdue University)

  • Dirk Maier

    ()
    (Department of Agricultural and Biological Enginering, College of Agriculture, Purdue University)

  • Corinne Alexander

    ()
    (Department of Agricultural Economics, College of Agriculture, Purdue University)

Abstract

Since the introduction of genetically modified (GM) crops, the commodity grain system has been under pressure to segregate GM and non-GM crops. Starting at the level of the grain handler, members of the grain supply chain have successfully used quality assurance and identity preservation programs to segregate non-GM crops. Producers delivering high value, identity preserved crops have become interested in implementing these quality management systems at the farm level. We conduct a cost-benefit analysis that shows that quality assurance program may be profitable for producers, depending on their farm size and equipment management strategy.

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File URL: http://ageconsearch.umn.edu/bitstream/28665/1/sp060002.pdf
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Bibliographic Info

Paper provided by Purdue University, College of Agriculture, Department of Agricultural Economics in its series Working Papers with number 06-02.

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Length: 25 pages
Date of creation: Feb 2006
Date of revision:
Handle: RePEc:pae:wpaper:06-02

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Keywords: on-farm quality assurance; identity preservation; cost-benefit analysis; @Risk;

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