developed countries the cost is about 38% of the total farm income gain. Although circum-
stances vary among countries, the higher share of total gains derived by farmers in devel-
oping countries relative to farmers in developed countries reflects factors such as weaker
provision and enforcement of intellectual property rights.
In addition to the tangible and quantifiable impacts on farm profitability presented
above, there are other important, more intangible (difficult to quantify) impacts of an econ-
omic nature. Many studies on the impact of GM crops have identified the factors listed
below as being important influences for adoption of the technology.
1.3.1 Herbicide-Tolerant Crops
†This method provides increased management flexibility due to a combination of the
ease of use associated with broad-spectrum, postemergent herbicides like glyphosate
(often referred to by its more commonly known brand name of Roundup) and the
increased/longer time window for spraying.
†In a conventional crop, postemergent weed control relies on herbicide applications before
theweedsandcroparewellestablished.Asaresult,thecropmaysuffer“knockback”toits
growth from the effects of the herbicide. In the GM HT crop, this problem is avoided
because the crop is tolerant to the herbicide and spraying can occur at a later stage
when the crop is better able to withstand any possible knockback effects.
†This method facilitates the adoption of conservation or no-tillage systems. This pro-
vides for additional cost savings such as reduced labor and fuel costs associated
with plowing.
†Improved weed control has contributed to reduced harvesting costs—cleaner crops
have resulted in reduced times for harvesting. It has also improved harvest quality
and led to higher levels of quality price bonuses in some regions (e.g., Romania).
†Potential damage caused by soil-incorporated residual herbicides in follow-on crops
has been eliminated.1.3.2 Insect-Resistant Crops
†For production risk management/insurance purposes, this method eliminates the risk
of significant pest damage.
†A “convenience” benefit is derived because less time is spent walking through the
crop fields to survey insects and insect damage and/or apply insecticides.TABLE 1.4. Cost of Accessing GM Technologya(in % Terms) Relative to Total Farm
Income Benefits, 2005
Crop All Farmers Developed Countries Developing Countries
GM HT soybean 21 32 10
GM IR maize 44 43 48
GM HT maize 38 38 81
GM IR cotton 21 41 13
GM HT cotton 44 43 65
GM HT canola 47 47 N/A
Totals 26 38 13
aCost of accessing the technology is based on the seed premia paid by farmers for using GM technology relative to
its conventional equivalent.
1.3. WHY FARMERS USE BIOTECH CROPS 7