During the first decade of their use by smallholder farmers in developing economies, peer-reviewed research has indicated that, on average, transgenic crops—and in particular Bt cotton—provide economic advantages for adopting farmers.
There are several methodological limitations associated with the first generation studies which have been identified in most cases by the authors themselves. These limitations have implications for findings and for policy formulation. They should also be addressed (and are been addressed) in the next generation of studies.
Some lessons
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| Chinese Bt cotton, China |
• Majority of studies reviewed used primary field data collected from farmers, farm records or from field trials conducted by researchers
• Most ex post (after deliberate release) studies have used methods such as partial budgeting/farm accounting and a specification of a model grounded on theoretical economics frameworks such as production functions or random utility models.
• Few studies have been ex ante (before deliberate release). Most of these use field data and a econometric estimation to then project potential economic impacts.
• Most studies focused on Bt cotton and were conducted in India, China and South Africa. This outcome is not surprising as this was one of the first and most widely diffused technology in developing countries.
• A set of studies in Mexico and Argentina examined the implications of intellectual property rights on economic benefits earned by farmers.
Reference
Smale, Melinda; Zambrano, Patricia; Gruère, Guillaume; Falck-Zepeda, José; Matuschke, Ira; Horna, Daniela; Nagarajan, Latha; Yerramareddy, Indira; Jones, Hannah. 2009. Measuring the economic impacts of transgenic crops in developing agriculture during the first decade: Approaches, findings, and future directions. (Food policy review 10) Washington, D.C.: International Food Policy Research Institute (IFPRI) 107 pages
http://www.ifpri.org/sites/default/files/publications/pv10.pdf
http://dx.doi.org/10.2499/0896295117FPRev10
