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Revisiting the Impact of Bt Corn Adoption by U.S. Farmers

Published online by Cambridge University Press:  15 September 2016

Jorge Fernandez-Cornejo
Affiliation:
Economic Research Service, U.S. Department of Agriculture, in Washington, D.C.
Seth Wechsler
Affiliation:
Department of Agricultural and Resource Economics at the University of Maryland in College Park, Maryland

Abstract

This study examines the impact of adopting Bt corn on farm profits, yields, and insecticide use. The study employs an econometric model that corrects for self-selection and simultaneity. The model is estimated using nationwide farm-level survey data for 2005. Regression analysis confirms that Bt adoption is associated with increased variable profits, yields, and seed demand. However, the results of this analysis suggest that Bt adoption is not significantly related to insecticide use. This result may be due to the fact that insect infestation levels were lower in 2005 than they were in previous years.

Type
Contributed Papers
Copyright
Copyright © 2012 Northeastern Agricultural and Resource Economics Association 

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