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A Preliminary Economic Assessment Of Roundup Ready Soybeans In Mississippi

Listed author(s):
  • Couvillion, Warren C.
  • Kari, Fatimah
  • Hudson, Darren
  • Allen, Albert J.

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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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
Handle: RePEc:ags:missrr:15783
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