Although adoption rates of genetically modified crops have been staggering in some countries, there is still comparatively little evidence about biotechnology impacts under diverse agroecological and institutional conditions. These knowledge gaps lead to an overly precautious attitude among policy makers and the public. This article analyzes the effects of Roundup Ready (RR) soybeans in Argentina, the country with the second biggest transgenic area worldwide. Based on recent survey data, it is shown that the technology increases total factor productivity by 10% on average, with cost savings being somewhat more pronounced for smaller than for larger farms. The reduction in use of toxic herbicides and of tillage operations entails positive environmental repercussions. Aggregate welfare effects are computed over the 1996-2001 period with a three-region, partial equilibrium model, comprising Argentina, the United States, and the rest of the world. In 2001, RR soybeans created more than US$1.2 billion of economic surplus at the global level. The largest share went to consumers (53%), followed by seed and biotechnology firms (34%), and agricultural producers (13%). Due to comparatively weak intellectual property protection, and thus only small technology mark-ups in seed prices and widespread adoption, Argentine soybean growers receive 90% of the benefits in that country. This demonstrates that farmers in developing countries can gain considerably when they obtain access to suitable foreign innovations through technology spill-overs. Copyright 2005 International Association of Agricultural Economics.
We examine the distribution of welfare from the introduction of Bt cotton in the United States in 1996. The welfare framework explicitly recognizes that research protected by intellectual property rights generates monopoly profits, and makes it possible to partition these rents among consumers, farmers, and the innovating input firms. We calculate a total increase in world surplus of $240.3 million for 1996. Of this total, the largest share (59%) went to U.S. farmers. The gene developer, Monsanto, received the next largest share (21%), followed by U.S. consumers (9%), the rest of the world (6%), and the germplasm supplier, Delta and Pine Land Company (5%). Copyright 2000, Oxford University Press.
The role of IARC‐generated technology in the global system of spring wheat improvement is examined for the period, 1977–90. Nine of the thirty–eight developing countries that produce spring wheat demonstrate the capacity to develop varieties from their own crosses; the other countries focus on screening CIMMYT germplasm for direct release. Over 40% of spring wheat area is sown to “direct transfer” CIMMYT varieties, indicating that CIMMYT research remains an important complement to NARS research. An ex post rate of return above 50% is estimated for wheat research investments in developing countries, with the highest returns occurring in the South Asia region and in irrigated and high‐rainfall environments. Future returns above 35% are projected.
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