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Monday, 1 May 2017

Producer Surplus Distributions in GM Crops: The Ignored Impacts of Roundup Ready Wheat

Author
William Wilson and Scott R. Huso

Abstract: Release of a genetically modified (GM) crop variety would lower prices of competing pesticides used on conventional varieties. This causes an increase in surplus for those farmers who adopt the GM variety, as well as for those who plant the conventional variety. A Cournot model was developed to determine the equilibrium quantities of conventional pesticides. A market with conventional wheat was compared to a market with both conventional and GM wheat varieties to identify price decreases of the conventional pesticide as a result of the GM trait introduction.
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European Coexistence Bureau. Best Practice Documents for coexistence of genetically modified soybean crops with conventional and organic farming

Author
Ivelin Rizov (ivelin.rizov@ec.europa.eu) and Emilio Rodríguez Cerezo (emilio.rodriguez-cerezo@ec.europa.eu)
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Abstract: The present technical report deals with coexistence issues of genetically modified (GM) soybean cultivation with non-GM soybean and honey production in the EU. The Technical Working Group (TWG) for Soybean of the European Coexistence Bureau (ECoB) analysed the possible sources for potential GM cross-pollination and admixture and agreed on the best practices for coexistence. The terms of reference for this review are presented in Section 1. The scope of the Best Practice Document is coexistence in soybean crop production in the EU. It includes the coexistence between GM soybean cultivation and honey production but excludes coexistence in seed production. The ECoB TWG for Soybean conducted two meetings, one in May 2013 and one in February 2014 examining the state-of-art knowledge from scientific literature, research projects and reports, as well as empirical evidence provided by already existing segregation systems in soybean production. The information reviewed amounts to a total of 123 references listed in this report. The report summarises the review of available information on adventitious GM presence in soybean crop production covering seed impurities, cultivation, outcrossing to non-GM soybeans, and volunteers. The process management during sowing, harvesting, transportation, drying and storage on farm is also reviewed. Additionally the report analyses existing studies dealing with the presence of soybean pollen in honey. Finally, the TWG for Soybean reviewed the state of the art for the detection and identification of traces of GM soybean material in non-GM soybean harvests and honey. Based on this review, the members of the TWG Soybean submitted proposals for best management practices, which form the basis of the agreed consensus recommendations presented in Section 8.
Keywords: Inovation; Biotechnology; Coexistence; Genetically Modified Organism (GMOs); Soybean; Best agricultural practices; Agronomy; Policy support; Standatization; Compititivness. (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr, nep-env and nep-ger
Date: 2014-07
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MULTINATIONAL COMPANIES' POLICIES ON GENETICALLY MODIFIED CROPS

Author
Tatjana Papic and Koviljko Lovre
Economics of Agriculture, 2008, vol. 55, issue 4

Abstract: The Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) obligated all onWorld Trade Organization (WTO) members to protect patents of biotech discoveries (products and processes) and plant varieties and for the first time assumes legal measures in protection of intellectual property giving strong stimulus to private sector investments into the biotechnology. The result: five TNCs are in possession of 71% agricultural biotechnological patents worldwide and determinates direction of biotechnology research. Monsanto, the most important agro-biotech company, gained in the ten years period 48.7 bilions $. It is decided that economic motives and intention for monopoly position present basic difussion generators of genetically modified (GM) food.
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Risk, genetically modified food and the US/EU divide

Author
Dave Toke
International Journal of Green Economics, 2007, vol. 1, issue 3/4, pages 407-418

Abstract: The Genetically Modified (GM) food and crops issue illustrates some key contemporary differences between the EU and the USA on environmental issues. These differences have been parallel to the apparently stronger influence of environmentalists since 1990 on a range of issues in the EU, compared to the USA. Beck's 'Risk Society' theory has general resonance with contemporary western attitudes to risk. However, it may be that the US regulatory framework may now be more representative of his 'analysis' of archetypal 'reflexive modernisation', while EU policies (on GM food at least) represent more self-critical, precautionary and solutions-oriented 'normative' aspects of the thesis.
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Will Genetically Modified Canola be Adopted in WA?

Author
Bronwyn Crowe and Johanna M. Pluske

Abstract: Despite approval being given by the Gene Technology Regulator to plant genetically modified (GM) canola varieties in Australia, the question as to whether farmers would be prepared to grow GM canola is still being explored. The purpose of this paper is to establish not only if producers would grow GM canola in south Western Australia but how they make this decision. Results from a survey aimed at canola producers found that adoption of GM canola will ultimately depend upon price premiums for non-GM canola and personal risk likely to be incurred by growers.
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Governing uncertain and unknown effects of genetically modified crops

Author
Valborg Kvakkestad and Arild Vatn
Ecological Economics, 2011, vol. 70, issue 3, pages 524-532

Abstract: This paper analyzes the capabilities of three different governance regimes for adequately handling uncertain and unknown effects of genetically modified (GM) crops. Adequate handling requires the development of sound procedures for identification of uncertainty and ignorance (U&I), reduction of U&I, decisions on how to treat irreducible U&I and monitoring of unexpected effects. The nature of U&I implies, however, that these procedures will be highly incomplete. Governance mechanisms that facilitate cooperative adaptation and communicative rationality are therefore needed. The three governance regimes (GRs) compared are: GM-crops are produced by private firms and these firms are made liable for harm (GR1); GM-crops are produced by private firms and the government decides whether the crops should be marketed (GR2); and GM-crops are produced and the government decides whether the crops should be marketed (GR3). The effect of bringing the civil society into the decision-making process is also analyzed. GR3 will be stronger in cooperative adaptation and communicative rationality than GR2. Public research organizations have fewer conflicts of interest with the government than private firms, and academic norms are important. Difficulties in proving harm and identifying the responsible firm will make GR1 weak in cooperative adaptation and communicative rationality.
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Adoption of Conservation-Tillage Methods and Genetically Modified Cotton

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Abstract: Adoption of herbicide-tolerant cotton and conservation tillage may be simultaneously related. Bayes' theorem and a two-equation logit model were used to test the simultaneity hypothesis. Evidence for Tennessee suggests that adoption of these technologies reduced residual herbicide use and soil erosion more than if adoption of these technologies were independent.
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Consumer demands for organic and genetically modified foods

Author
Peter Donaghy, John Rolfe and Jeffrey Bennett

Abstract: Issues concerning consumer demands for genetically modified and organic food remain topical. It is unclear how consumers perceive issues associated with food production such as food safety, environmental impacts or animal welfare. It is also unclear how consumers might value potential changes in those issues in regional and metropolitan centres. This paper reports on research using the choice modelling technique to estimate and compare consumer demand for genetically modified and organic foods in Australia. The case study considers tomatoes, milk and beef commodities. The results draw comparisons between the contribution of associated factors influencing consumer purchasing decisions in a regional and metropolitan city. The results are relevant to the current policy debate regarding the introduction of GM foods.
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LOGISTICAL COSTS AND RISKS OF MARKETING GENETICALLY MODIFIED WHEAT

Author
Shannon M. Schlecht, William Wilson and Bruce L. Dahl

Abstract: Genetically modified (GM) grains have increased in importance. Moving biotech grains from producers to processors is a challenge for the grain handling system that could involve increased segregations. The objective of this research is to determine how testing strategies affect the logistical costs of a grain pipeline when GM wheat is present. A logistical model was developed and simulated to analyze impacts of uncertainty in demand, receipts, test accuracy, rail deliveries, and transit time. Sensitivities were conducted on certain variables to determine their effects on logistical costs. Analysis revealed that logistical costs are impacted by the number of quality categories and uncertainties in the system. Adding GM grains increased costs due to testing requirements and increased segregation demands as the number of wheat categories rises.
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OPTIMAL TESTING STRATEGIES FOR GENETICALLY MODIFIED WHEAT

Author
William Wilson, Eric J. Jabs and Bruce L. Dahl

Abstract: A stochastic optimization model was developed to determine optimal testing strategies, costs, and risks of a dual marketing system. The model chooses the testing strategy (application, intensity, and tolerance) that maximizes utility (minimizes disutility) of additional system costs due to testing and quality loss and allows simulation of the risk premium required to induce grain handlers to undertake a dual marketing system versus a Non-GM system. Cost elements including those related to testing, quality loss, and a risk premium were estimated for a model representing a grain export chain. Uncertainties were incorporated and include test accuracy, risk of adventitious commingling throughout, and variety declaration. Sensitivities were performed for effects of variety risks, penalty differentials, re-elevation discounts, import tolerances, variety declaration, risk aversion, GM adoption, and domestic end-user.
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