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G. Chandrashekhar

MUMBAI, July 3

QUITE contrary to the hype generated by corporates having large stake in agricultural biotechnology, a report recently released by the US Department of Agriculture (USDA) on farm-level adoption of bio-engineered crops in the US has drawn conclusions that are not exactly inspiring.

In a report titled `Adoption of bio-engineered crops', the authors, Mr Jorge Fernandez-Cornejo and Mr William D. McBride, have concluded there are tangible benefits to farmers adopting first-generation genetically engineered (GE) crops. Not all of the benefits (easy to use and less management intensive) are reflected in standard measures of net returns, they have added.

``But looking at farm-level impacts, it appears that farmers are, at least, not being disadvantaged by the advent of GE pest and herbicide-resistant seed,'' the authors concluded. This inference flies in the face of widespread belief, generated to a considerable extent by hype in the media and other forms of communication, that the frontier technology delivers to farmers economic benefits on a scale not hitherto known.

While demanding that the results presented in the report should be interpreted carefully, especially since the impact studies were based on just two years of survey data (1997 and 1998), the authors have noted that the impact of genetically engineered (GE) crops vary with several factors, most notably annual pest infestations, seed premiums, prices of alternative pest control programmes and any premiums paid for segregated crops.

These factors will continue to change over time as technology, marketing strategies for GE and conventional crops, and consumer perceptions of GE crops evolve and new technologies are introduced, the report pointed out.

Some of the principal findings include: a) adoption of most GE crops has been rapid since these crops first became available to farmers in 1996; b) the economic impact of GE crops varies by crop and type of technology; c) the use of herbicide-tolerant soyabeans was quite profitable for some farms, but the profitability depended specifically on the types of weed pressures faced on the farm; d) adoption of Bt cotton had a positive economic impact on farms, but Bt corn had a negative impact; e) adoption of GE crops has been associated with a small but statistically significant reduction in aggregate pesticide use.

The most widely and rapidly adopted bio-engineered crops in the US are those with herbicide-tolerant traits. These crops were developed to survive the application of specific herbicides that previously would have destroyed the crop along with the targeted weeds, and provide farmers a broader variety of herbicide options for effective weed control.

Herbicide-tolerant soyabeans became available to farmers in limited quantities in 1996. Use expanded to about 17 per cent of the soyabean acreage in 1997, 56 per cent in 1999 and 68 per cent 2001. Herbicide-tolerant cotton expanded from 10 per cent of cotton acreage in 1997 to 42 per cent in 1999, and reached 56 per cent in 2001. In contrast, the adoption of herbicide-tolerant corn (maize) has been much slower and has yet to exceed 10 per cent.

Bt crops containing the gene from a soil bacterium, Bacillus thuringiensis (Bt), are the only insect-resistant GE crops commercially available as of 2002. The bacteria produce a protein that is toxic to certain Lepidopteran insects (insects that go through a caterpillar stage), protecting the plant over its entire life.

Bt has been built into several crops including corn and cotton. After its introduction in 1996, Bt corn grew to 8 per cent of US corn acreage in 1997 and 26 per cent in 1999, but fell to 19 per cent in 2000-01. Bt cotton expanded rapidly from 15 per cent of US cotton acreage in 1997 to 32 per cent in 1999 and about 37 per cent in 2001.

According to the authors, the growth rate of Bt crop adoption will vary over time, both in a positive and a negative direction, mainly as a function of the infestation levels of Bt target pests. The growth rate for Bt corn adoption is likely to be low since adoption has already occurred where Bt protection can do the most good.

On the other hand, adoption of herbicide-tolerant crops will likely continue to grow, particularly for cotton, unless there is radical change in US consumer sentiment. In most cases, the growth of GE crops estimated in this report has been validated by the 2001 plantings.

On the environmental side, an overall reduction in pesticide use related to the increased adoption of GE crops (Bt cotton; and herbicide-tolerant corn, cotton, soyabean) was seen. The decline in pesticide use was seen to be 6.2 per cent of total treatments (1997). Total active ingredients also declined.

While adoption of new technologies within the agricultural sector is known to result in higher productivity, the adoption of biotechnology innovations by farmers in the US and a few other countries has ramifications beyond productivity. For instance, it has caused concerns about the potential impact on the environment and opened a Pandora's box of issues surrounding consumer choice, particularly in Europe.

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