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The Economics of Bt Corn: Valuing Protection from the European Corn Borer
Author(s) -
Hyde Jeffrey,
Martin Marshall A.,
Preckel Paul V.,
Edwards C. Richard
Publication year - 1999
Publication title -
applied economic perspectives and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.4
H-Index - 49
eISSN - 2040-5804
pISSN - 2040-5790
DOI - 10.2307/1349890
Subject(s) - european corn borer , bacillus thuringiensis , genetically modified maize , value (mathematics) , agronomy , infestation , bushel , toxicology , zea mays , biology , agricultural science , genetically modified crops , economics , pest analysis , horticulture , mathematics , statistics , bacteria , biochemistry , transgene , genetics , acre , gene
Abstract Corn that carries a gene from the natural soil bacterium Bacillus thuringiensis kurstaki , or Bt, has given farmers a potentially powerful tool to protect against European corn borer (ECB) damage. European corn borers are responsible for losses of $1–$2 billion per year in the United States. This study analyzed the economic value of Bt corn under Indiana conditions. Results suggest that the value of the protection offered by Bt corn is generally lower than the current seed premiums in Indiana. The economic value of Bt corn may exceed the current premiums for farmers with higher‐than‐average yields or who have a 40% or greater probability of an ECB infestation.