Hostname: page-component-586b7cd67f-2plfb Total loading time: 0 Render date: 2024-11-25T08:14:47.489Z Has data issue: false hasContentIssue false
  • English
  • Français

Farm-Level Effects of Adopting Herbicide-Tolerant Soybeans in the U.S.A.

Published online by Cambridge University Press:  28 April 2015

Jorge Fernandez-Cornejo ,
Cassandra Klotz-Ingram  and
Sharon Jans
Jorge Fernandez-Cornejo
Affiliation:
Economic Research Service, U.S. Department of Agriculture, 1800 M Street, Room 4052, Washington, DC 20036-5831
Cassandra Klotz-Ingram
Affiliation:
Economic Research Service, U.S. Department of Agriculture, 1800 M Street, Room 4052, Washington, DC 20036-5831
Sharon Jans
Affiliation:
Economic Research Service, U.S. Department of Agriculture, 1800 M Street, Room 4052, Washington, DC 20036-5831
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper estimates the on-farm impacts of adopting herbicide-tolerant soybean on herbicide use, yields, and farm profits, using an econometric model that corrects for self-selection and simultaneity and is consistent with profit maximization. The model is estimated using nationwide farm-level survey data for 1997. Given that the use of herbicide-tolerant soybeans involves the substitution of a particular herbicide—primarily glyphosate—for other herbicides, we explicitly consider this substitution process in the model.

Keywords

Genetically engineered soybeansherbicide toleranceherbicide usefarm profitstechnology adoptionyields
Type
Original Articles
Information
Journal of Agricultural and Applied Economics , Volume 34 , Issue 1 , April 2002 , pp. 149 - 163
Copyright
Copyright © Southern Agricultural Economics Association 2002

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Arnold, J.C., Shaw, D.R., and Medlin, C.R.. “Roundup Ready® Programs Versus Conventional Programs: Efficacy, Varietal Performance, and Economics.” Proceeding of the Southern Weed Science Society, Southern Weed Science Society. 1998. v. 51. p. 272–73.Google Scholar
Barnow, B., Cain, G., and Goldberger, A.. “Issues in the Analysis of Selectivity Bias.” In Stromsdorfer, E. and Farkas, G., eds. Evaluation Studies Review Annual. Vol. 5. Beverly Hills, CA: Sage Publications, 1981.Google Scholar
Ben-Akiva, M. and Lerman, S.. Discrete Choice Analysis: Theory and Application to Travel Demand. Massachusetts Institute of Technology Series in Transportation Studies. MIT Press, Cambridge, MA. 1985.Google Scholar
Burrows, T. M. “Pesticide Demand and Integrated Pest Management: A Limited Dependent Variable Analysis.” American Journal of Agricultural Economics 65(1983):806–10.CrossRefGoogle Scholar
Carpenter, J. and Gianessi, L.. “Herbicide Tolerant Soybeans: Why Growers are Adopting Roundup Ready Varieties.” AgBioForum 2, 2(Spring 1999): 65–72. http://www.agbioforum.missouri.edu.Google Scholar
Couvillion, W.C., Kari, F., Hudson, D., and Allen, A.. “A Preliminary Economic Assessment of Roundup Ready Soybeans in Mississippi.” Mississippi State University. Research Report 2000-005. May 2000.Google Scholar
Culpepper, A. and, S. York, A.C.. “Weed Management in Glyphosate-Tolerant Cotton.” The Journal of Cotton Science 4(1998): 174–185.Google Scholar
Delannay, X., Bauman, T.T., Beighley, D.H., Buettner, M.J., Coble, H.D., DeFelice, M.S., Derting, C.W., Diedrick, T.J., Griffin, J.L., Hagood, E.S., Hancock, F.G., Hart, S.E., LaVallee, B.J., Loux, M.M., Lueschen, W.E., Matson, K.W., Moots, C.K., Murdock, E., Nickell, A.D., Owen, M.D.K., Paschall, E.H. II, Prochaska, L.M., Raymond, P.J., Reynolds, D.B., Rhodes, W.K., Roeth, F.W., Sprankle, P.L., Tarochionc, L.J., Tinius, C.N., Walker, R.H., Wax, L.M., Weigelt, H.D., and Padgette, S.R.. “Yield Evaluation of a Glyphosate-Tolerant Soybean Line After Treatment with Glyphosate.” Crop Science 35(1995): 1461–67.CrossRefGoogle Scholar
Dorfman, J.F. “Modeling Multiple Adoption Decisions.” American Journal of Agricultural Economics 78(1996): 547–558.CrossRefGoogle Scholar
Dwivedi, T.D. and Srivastava, V.K.. “Optimality of Least Squares in the Seemingly Unrelated Model.” Journal of Econometrics 6(1978): 391–5.CrossRefGoogle Scholar
Diewert, W.E. and Ostensoe, L.. “Flexible Functional Forms and Global Curvature Conditions.” In Dynamic Econometric Modeling. Barnett, W., Berndt, E., and White, H., eds., Cambridge Univ. Press. 1988.Google Scholar
Farm Bureau/Philip Morris. “Sharing Knowledge: An Analysis of the Farm Bureau/Philip Morris 1999 Gap Research: Consumer and Farmer Opinions About Food and Agriculture.” Conducted by Roper Starch Worldwide Inc. on behalf of the Philip Morris family of companies and the American Farm Bureau Federation. 2000.Google Scholar
Feder, G., Just, R. J., and Zilberman, D.. “Adoption of Agricultural Innovations in Developing Countries: A Survey.” Economic Development and Cultural Change (1985): 255–98.CrossRefGoogle Scholar
Fernandez-Cornejo, J. “The Microeconomic Impact of IPM Adoption: Theory and Application.” Agricultural and Resource Economics Revue 25(1996): 149–60.CrossRefGoogle Scholar
Fernandez-Cornejo, J. “Environmental and Economic Consequences of Technology Adoption: IPM in Viticulture.” Agricultural Economics 18(1998): 145–55.Google Scholar
Fernandez-Cornejo, J., Beach, E.D., and Huang, Wen-Yuan. “The Adoption of IPM Techniques by Vegetable Growers in Florida, Michigan, and Texas.” Journal of Agricultural and Applied Economics 1(1994): 158–72.CrossRefGoogle Scholar
Fernandez-Cornejo, J. and Jans, S.. “Quality-Adjusted Price and Quantity Indices for Pesticides.” American Journal of Agricultural Economics 77(1995): 645–59.CrossRefGoogle Scholar
Fernandez-Cornejo, J. and Klotz-Ingram, C.. “Economic, Environmental, and Policy Impacts of Using Genetically Engineered Crops for Pest Management.” Selected Paper presented at the 1998 NAREA meetings. Ithaca, NY. June 22-23, 1998.Google Scholar
Ferrell, J.A., Witt, W.W., and Slack, C.H.. “Integrating Glyphosate into Corn Weed Management Strategies.” Proceedings Southern Weed Science Society (52) (1999): 27–28.Google Scholar
Goldman, D.L., Guy, C., McClelland, M., and Kendig, A.. “Weed Control Systems in Roundup Ready® Cotton.” Proceedings of the Beltwide Cotton Conferences. Cotton Weed Science Research Conference. 1996. v.2. p. 1532.Google Scholar
Greene, W.H. LIMDEP, Version 7.0, User's Manual. Bellport, NY: Econometric Software, 1995.Google Scholar
Greene, W.H. Econometric Analysis. Third Edition. Upper Saddle River, NJ: Prentice-Hall, 1997.Google Scholar
Griliches, Z. “Hybrid Corn: An Exploration in the Economics of Technological Change.” Econometrica 25(1957): 501–22.CrossRefGoogle Scholar
Hayenga, M. “Structural Change in the Biotech Seed and Chemical Industrial Complex.” AgBioForum 1, 2(Fall 1998):43–55. http://www.agbioforum.missouri.edu.Google Scholar
Heckman, J.J. “The Common Structure of Statistical Models of Truncation, Sample Selection and Limited Dependent Variables and a Simple Estimator for Such Models.” Annals of Economic and Social Measurement 5(1976): 475–91.Google Scholar
Heckman, J.J. “Dummy Exogenous Variables in a Simultaneous Equation System.” Econometrica 46(1978): 931–59.CrossRefGoogle Scholar
Heimlich, R.E., Fernandez-Cornejo, J., McBride, W., Klotz-Ingram, C., Jans, S., and Brooks, N.. “Adoption of Genetically Engineered Seed in U.S. Agriculture: Implications for Pesticide Use.” Paper presented at the 6th Intl. Symposium on Biosafety, Saskatoon, Can. Jul. 2000.Google Scholar
Henry, A. Wallace Center for Agricultural and Environmental Policy. “Agricultural Biotechnology and the Environment: A Review of Research and Other Information for Policy.” Interim report to WK. Kellogg Foundation and U.S. Department of Agriculture. Winrock International, Greenbelt, MD. Jan. 31, 2000. 228 pp.Google Scholar
IFIC Foundation. “More U.S. Consumers See Potential Benefits to Food Technology.” March 2001. http://www.ificinfo.health.org/foodbiotech/biotechsurvey.htm.Google Scholar
Keeling, W, Dotray, P., Jones, C., and Sunderland, S.. “Roundup® Ready Cotton: A Potential New Weed Management Tool for the Texas High Plains.” Proceedings of the Beltwide Cotton Conferences. Cotton Weed Science Research Conference. 1996. v. 2. p. 1529.Google Scholar
Kott, PS. “Using the Delete-A-Group Jackknife Variance Estimator in NASS Surveys,” RD Research Report No. RD-98-01, Washington, DC: USDA, NASS. 1998.Google Scholar
Kott, PS. and Stukel, D.M.. “Can the Jackknife Be Used With a Two-Phase Sample?” Survey Methodology (1997): 81–89.Google Scholar
Kott, PS. and Fetter, M.. “A Multi-Phase Sample Design to Co-ordinate Surveys and Limit Response Burden.” Paper presented at the 1997 Joint Statistical Meetings (ASA, ENAR, WNAR, IMS, SSC). August 1997.Google Scholar
Lee, L.F., Maddala, G.S., and Trost, R.P.. “Asymptotic Covariance Matrices for Two-Stage Probit and Two-Stage Tobit Methods for Simultaneous Equation Models With Selectivity.” Econometrica 48(1980): 491–503.CrossRefGoogle Scholar
Maddala, G. S. Limited-Dependent and Qualitative Variables in Econometrics. Cambridge University Press, Cambridge, UK. 1983.CrossRefGoogle Scholar
Marra, M., Carlson, G., and Hubbell, B.. Economic Impacts of the First Crop Biotechnologies. Electronic public, http://www.ag.econ.ncsu.edu/faculty/marra/firstcrop/img001.gif. 1998.Google Scholar
Reddy, K.N. and Whiting, K.. “Comparison of Weed Control in Roundup Ready, STS, and-Conventional Soybeans.” Proceedings of the Southern Weed Science Society, Southern Weed Science Society 52(1999): 210.Google Scholar
Roberts, R. K., Pendergrass, R., and Hayes, R. M.. “Farm-Level Economic Analysis of Roundup Ready® Soybeans.” Presented at the Southern Agricultural Economics Association Meeting, Little Rock, Arkansas. Feb. 1-4. 1998.Google Scholar
Royal Society, Genetically Modified Plants for Food Use. London, UK: Carlton House Terrace, Sept. 1998, 29 pp.Google Scholar
Rust, K. “Variance Estimation for Complex Estimators in Sample Surveys.” Journal of Official Statistics 1(1985): 381–397.Google Scholar
Soule, M. and Klotz-Ingram, C.. “The Simultaneous Adoption of Conservation Tillage and Herbicide-Tolerant Seeds by U.S. Soybean Producers.” Selected paper presented at the 2000 AAEA meeting, Tampa, July 29-August 3, 2000.Google Scholar
U.S. Dept. of Agriculture, Econ. Research Service. Agricultural Resources and Environmental Indicators, 1996-97. Agricultural Handbook 712. July 1997.Google Scholar
U.S. Dept. of Agriculture, National Agric. Statistical Service. Agriculture Chemical Usage: 1997 Field Crops Summary. September 1998.Google Scholar
U.S. Dept. of Agriculture, Economic Research Service. “Genetically Engineered Crops for Pest Management.” http://www.econ.ag.gov/whatsnew/issues/biotech/index.htm. August 1999a.Google Scholar
U.S. Department of Agriculture, National Agricultural Statistics Service, Agricultural Statistics Board. Crop Production. October 8, 1999b.Google Scholar
U.S. Department of Agriculture, National Agricultural Statistics Service. Acreage http://usda.mannlib.cornell.edu/reports/nassr/field/pcp-bba/acrg0600.pdf June 30, 2000.Google Scholar
Vencill, W.K. “Weed Management Systems utilizing Herbicide-resistant Cotton.” Proceedings of the Beltwide Cotton Conferences. Cotton Weed Science Res. Conf. 1996. v.2. p. 1532–33.Google Scholar
Wu, J.J. and Babcock, B.A.. “The Choice of Tillage, Rotation, and Soil Testing Practices: Economic and Environmental Implications.” Amer. J. Agric. Econ. 80(1998): 494–511.CrossRefGoogle Scholar
Zellner, A. “An Efficient Method for Estimating Seemingly Unrelated Regression and Test of Aggregation Bias.” Journal of the American Statistical Association 57(1962): 348–68.CrossRefGoogle Scholar