Analysing the farm level economic impact of GM corn in the Philippines

TY - JOUR

T1 - Analysing the farm level economic impact of GM corn in the Philippines

AU - Afidchao, M. M.

AU - Musters, C. J. M.

AU - Wossink, A.

AU - Balderama, O. F.

AU - de Snoo, G. R.

N1 - ISI Document Delivery No.: AU8BQ Times Cited: 3 Cited Reference Count: 44 Afidchao, Miladis M. Musters, C. J. M. Wossink, Ada Balderama, Orlando F. de Snoo, Geert R. Musters, Cornelis/K-7828-2013 Louwes scholarship program of Leiden University in the Netherlands We gratefully acknowledge the constructive comments by the editor and an anonymous reviewer. We would like to extend our appreciation and gratitude to the farmers for their cooperation and unselfishly sharing their first-hand information with us. In addition, we thank to the following people: RG Salazar, RG Mabutol Jr., AM Vanyvan, G. Persoon, J van der Ploeg, P.M. Afidchao Jr., RR Quilang, MD Masipiquena, T Minter, MTR Aggabao, M. van Weerd, A. Domingo Sr., EF Macaballug, RC Ramirez, WC Medrano, AHG Aggabao, CB Mabutol, RM del Rosario, R Aquino, EM Ariola, DM Mabutol, KC Villegas and WB Saliling. This study was supported by the Louwes scholarship program of Leiden University in the Netherlands. 4 0 54 Royal netherlands soc agr sci Wageningen 2212-1307 <Go to ISI>://WOS:000345822100016

PY - 2014

Y1 - 2014

N2 - This paper analyses the farm economic viability of genetically modified (GM) corn in the Philippines. Data was collected from 114 farmers in Isabela province including non-GM, Bacillus thuringiensis (Bt), herbicide tolerant (HT) and BtHT corn farmers. Results of univariate analysis showed that non-GM corn was not statistically different from Bt, BtHT and HT corn in terms of production output, net income, production-cost ratio and return on investment. Multivariate econometric analysis for the agronomic input variables showed a higher return on investment for Bt corn as the only significant difference between seed types. Next, pest occurrence and severity variables were included in the regression to address endogeneity. The Blinder-Oaxaca decomposition method was used to further investigate differences between growers of BtHT corn and non-GM corn into an endowment and a coefficient effect. The decomposition analysis showed that BtHT corn has a negative impact on return on investment as revealed by the negative signs of the overall mean gap and the characteristics and coefficient components. In contrast, the overall mean gap for net income indicated that adopting BtHT corn could potentially increase non-GM growers' income mainly from better control of corn borer pest even though mean levels of borer occurrence are lower for non-GM growers. (C) 2014 Royal Netherlands Society for Agricultural Sciences. Published by Elsevier B.V. All rights reserved.

AB - This paper analyses the farm economic viability of genetically modified (GM) corn in the Philippines. Data was collected from 114 farmers in Isabela province including non-GM, Bacillus thuringiensis (Bt), herbicide tolerant (HT) and BtHT corn farmers. Results of univariate analysis showed that non-GM corn was not statistically different from Bt, BtHT and HT corn in terms of production output, net income, production-cost ratio and return on investment. Multivariate econometric analysis for the agronomic input variables showed a higher return on investment for Bt corn as the only significant difference between seed types. Next, pest occurrence and severity variables were included in the regression to address endogeneity. The Blinder-Oaxaca decomposition method was used to further investigate differences between growers of BtHT corn and non-GM corn into an endowment and a coefficient effect. The decomposition analysis showed that BtHT corn has a negative impact on return on investment as revealed by the negative signs of the overall mean gap and the characteristics and coefficient components. In contrast, the overall mean gap for net income indicated that adopting BtHT corn could potentially increase non-GM growers' income mainly from better control of corn borer pest even though mean levels of borer occurrence are lower for non-GM growers. (C) 2014 Royal Netherlands Society for Agricultural Sciences. Published by Elsevier B.V. All rights reserved.

KW - corn genetically modified crops farm economics smallholder farms decomposition analysis Philippines bt cotton wage discrimination crops decomposition maize pesticides yield borer poor Agriculture

U2 - 10.1016/j.njas.2014.05.008

DO - 10.1016/j.njas.2014.05.008

M3 - Article

SN - 1573-5214

VL - 70-71

SP - 113

EP - 121

JO - Netherlands Journal of Agricultural Science

JF - Netherlands Journal of Agricultural Science

ER -