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Market Impacts of Adopting Herbicide-Resistant Rice in the Southern United States

Author

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  • Fuller, Frank H.
  • Annou, Mamane Malam
  • Wailes, Eric J.

Abstract

Herbicide-resistant (HR) rice varieties offer U.S. rice producers a powerful tool for control of red rice infestations. However, improved weed control can shorten crop rotations and boost yields, resulting in expanded rice production and lower domestic market prices. Declining market returns diminish the benefits of HR rice adoption and substantially reduce net returns for nonadopters. More competitive prices increase U.S. rice exports, causing a slight decline in world rice prices. The dependence of the rice marketing loan program on world prices prevents loan deficiency payments from adequately offsetting producers’ market revenue losses. U.S. consumers gain from lower rice prices.

Suggested Citation

  • Fuller, Frank H. & Annou, Mamane Malam & Wailes, Eric J., 2003. "Market Impacts of Adopting Herbicide-Resistant Rice in the Southern United States," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 35(1), pages 1-9, April.
    • Handle: RePEc:ags:joaaec:37859
    DOI: 10.22004/ag.econ.37859
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    Cited by:

    1. Casellas, Karina & Lema, Daniel & Brescia, Víctor & Berges, Miriam, 2012. "Disposición a pagar y adopción de innovaciones genéticas: el caso del arroz resistente a herbicidas," Nülan. Deposited Documents 1895, Universidad Nacional de Mar del Plata, Facultad de Ciencias Económicas y Sociales, Centro de Documentación.
    2. Galli, Fabrizio & Naseem, Anwar & Singla, Rohit, 2012. "Welfare Effects of Herbicide-Tolerant Rice Adoption in Brazil," 2012 Conference, August 18-24, 2012, Foz do Iguacu, Brazil 126886, International Association of Agricultural Economists.

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