Agriculture Reference
In-Depth Information
Bt crops have insect-resistant traits; HT crops have herbicide tolerance traits.
Source: U.S. Department of Agriculture (USDA), Economic Research Service (ERS).
2013.
Adoption of Genetically Engineered Crops in the United States,
data
product.
Figure 10. Adoption of genetically engineered cotton: growth of stacked traits, 2000-
2013.
GE seed prices are influenced by stacking and many other factors.
The
market price of seed incorporates the costs associated with seed development,
production, marketing, and distribution (Fernandez-Cornejo, 2004). The price
must reflect farmers' willingness to pay while ensuring a profit margin after
costs. Furthermore, the price depends on the competitiveness of the particular
seed market, and the pricing behavior of those firms that hold large shares of
the market (NRC, 2010).
In recent decades, private sector R&D costs have been rising with the
application of new technologies, and much of the increase in seed prices has
been associated with this trend (Krull et al., 1998). R&D costs vary among the
different seed markets. For example, the corn seed market depends extensively
on private sector R&D and passes these costs on to farmers. The wheat seed
market depends largely on public sector research, which is largely cost free for
farmers. There is no GE wheat commercially available.
20
The real price index for seed rose nearly 30 percent faster than the average
index of prices paid by U.S. farmers over 1996-2007 (NRC, 2010). The price
of GE soybean and corn seeds grew by about 50 percent in real terms (adjusted
for inflation) between 2001 and 2010 (figure 11). The price of GE cotton seed
grew even faster (NRC, 2010).
