Agriculture Reference
In-Depth Information
2.2 EconomicEffectsinMaizeSeedProduction
Maize seed production in Europe covered 126,311 ha in 2003, with
France being the leading seed producer in Europe (49,822 ha). In France
50 percent of seed production is concentrated in the southwest region
and two “
departements
” (Landes and Pyr enees-Atlantiques) account for
25 percent of the national production. To estimate the economic effects
of the suggested coexistence measures, it was assumed that a yield of
3.5 t of maize seed per hectare generates a total income of 3,365
/ha
of maize seed production in France (Hugger, 2004). Taking into account
variable production costs of 2,177
€
/ha and additional compensation pay-
€
ments, a gross margin of 1,488
/ha was taken as the baseline for the
cost calculations of maize seed production (Hugger, 2004). The economic
effects of increasing isolation distances were calculated for a kind of
worst-case scenario in which the farmer producing GMmaize seed has to
reduce his seed producing area and plant the most economic crop (i.e.,
wheat) as an alternative. This results in gross margin losses of almost
22 percent in the case of an additional 100-m isolation distance and
almost one-third of the gross margin if an extra 150-m isolation distance
is added (Table 4). Substantial opportunity costs of around 16 percent
of the gross margin have to be added, particularly if 18 additional male
rows have to be cultivated. Changing the flowering time of the culti-
vated seed maize varieties also has negative effects on yield, which are
quite substantial in the case of switching from very late to late varieties
(30
◦
days). Farmers' loss of income due to this measure would total to
around 30 percent of the gross margin of maize seed production. The
income losses are significantly lower if the flowering time is switched
from late to mid-early varieties (Table 4).
In a subsequent step of our study the economic effects are calculated
for combinations of different measures in case that GM and non-GM
seeds are produced in a region. The lowest per-hectare costs of such
combinations of measures necessary to meet a defined threshold dif-
fer considerably, depending on the sizes of neighboring non-GM seed
€
