GE Crops Cost Mid-West Farmers
More Money

From Agribusiness Examiner #139
By Al Krebs
Jan. 10, 2002

MICHAEL DUFFY, LEOPOLD CENTER:
IOWA FARM STUDY SHOWS NO ECONOMIC ADVANTAGE
OF USING GE SEEDS OVER CONVENTIONAL SEEDS

JON VAN, CHICAGO TRIBUNE: Genetically modified crops, which have
caused considerable consumer opposition in Europe, have been gaining popularity
among U.S. farmers, but not for economic reasons. An analysis among more
than 300 Iowa farmers showed that those who used genetically modified seeds
didn't gain any economic advantage over those who used conventional seeds.

The analysis was conducted by Michael Duffy, associate director of the
Leopold Center for Sustainable Agriculture at Iowa State University. Duffy's
analysis, published in the center's newsletter, was drawn from information
gathered by the U.S. Department of Agriculture. It was the second time Duffy
concluded the economics of genetically modified crops don't add up for
farmers.

He found that, on average, farmers who grew soybeans designed to tolerate
weed killer treatment did spend less on herbicides than their counterparts
who planted regular soybeans. However, he found, any herbicide-related
savings were counterbalanced by somewhat lower yields from the genetically
altered crops and the higher cost of seeds.

Duffy also looked at farms that used corn seeds that were genetically
altered to make the corn more resistant to European corn borers. While the
modified corn seeds had somewhat higher yields, they also had higher
fertilizer costs and higher seed costs, negating any economic advantage. If
there's no clear economic benefit, why have genetically modified seeds
gained popularity among farmers?

"For herbicide-tolerant soybeans, farmers answer by saying they can cover
more acres more quickly and they don't have to worry about weed management
as they did in the past," Duffy reports. Farmers who used the modified corn
seed said they viewed it as insurance against a possible insect infestation,
he said.