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

Author

Listed:
  • 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.

Suggested Citation

  • Umit Karaca & Dirk Maier & Corinne Alexander, 2006. "Does On-Farm quality Assurance Pay? A Cost-Benefit Analysis of the GrainSafe Program," Working Papers 06-02, Purdue University, College of Agriculture, Department of Agricultural Economics.
  • Handle: RePEc:pae:wpaper:06-02
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    Keywords

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

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Biofuels; Agricultural Extension Services

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