Pocket K No. 5: Documented Benefits of GM Crops

The global area planted to GM crops has consistently increased over the past years.  Substantial share of GM crops has been grown in developed countries. In the last few years, however, there has been a consistent increase in the number of hectares being planted to GM crops in the developing world. Fifty four percent (54%) of the total global GM crop area is now being grown in developing countries. A significant increase in GM crop area was reported in developing countries of Africa, Asia, and Latin America.  Experiences from these countries show that resource-poor farmers can also benefit from this technology.

This Pocket K documents some of the GM crop experiences of selected developing countries.

Global Impact of GM Crops

Farm Income

Biotech crops have had a positive impact on farm income worldwide due to enhanced productivity and efficiency gains. In 2012, direct global farm income benefit was $18.8 billion. Over the period of 17 years between 1996-2012, farm incomes have increased by $116.6.1  

 

Global farm income benefits from growing GM crops, 1996-2012 (US$ million)

GM Trait 2012 increase in farm income 1996-2012 increase in farm income
HT Soybean 4,797.9 37,008.6
HT maize 1,197.9 5,414.7
HT cotton 147.2 1,371.6
HT canola 481.0 3,664.4
IR maize 6,727.8 32,317.2
IR cotton 5,331.3 36,317.2
Others 86.3 496.7
Totals 18,769.4 116,590.4
Note: HT = herbicide tolerant, IR = insect resistant, others = virus-resistant papaya and squash, rootworm-resistant maize. Figures in parentheses include second-crop benefits in Argentina.
Adopted from: G. Brookes and P. Barfoot, 2014

 

Pesticide Use

Since 1996, farmers planting biotech crops have reduced pesticide inputs in their fields by 8.8% or over 503 million kg which led to an overall reduction in the environmental footprint of biotech crops by 18.7%. Environmental footprint is a measure of the effect or impact a product, process, operation, an individual or corporation places on the environment, in this case, measuring the environmental effects of pesticides.

The largest environmental gain was recognized in fields where HT soybeans were planted. The volume of herbicides used by HT maize farmers has decreased by 203.2 million kg over the past 17 years. Similarly, significant reductions in pesticide loads were experienced by farmers planting insect resistant (IR) maize and cotton.1

Impact of changes in the use of herbicides and insecticides in GM crops globally, 1996-2012

GM Trait Change in volume of AI used (million kg) Change in field EIQ impact (million field EIQ/ha units) % change in AI use on GM crops % change in environmental impact associated with herbicide and insecticide use on GM crops
HT Soybean -4.7 -6,654 -0.2 -15.0
HT maize -203.2 -6,025 -9.8 -13.3
HT canola -15.0 -509 -16.7 -26.6
HT cotton -18.3 -460 -6.6 -9.0
IR maize -57.6 -2,215 -47.9 -45.1
IR cotton -205.4 -9,256 -25.6 -28.2
HT sugar beet +1.3 -1 +29.3 -2.0
Totals -503.1 -25,121 -8.8 -18.7

Note: HT = herbicide tolerant, IR = insect resistant, Ai = active ingredient, EIQ = environmental impact quotient.

(Environmental Impact Quotient (EIQ), a universal indicator where the various environmental impacts of individual pesticides are integrated into a single field value per hectare. This EIQ value is multiplied by the amount of pesticide active ingredient (ai) used per hectare to produce a field EIQ value.) 

Source: G. Brookes and P. Barfoot, 2014

 

Developed Country Experiences

Several studies on GM crop adoption in North America and elsewhere highlighted the multiple benefits derived from GM crops. Examples are the following:

United States

  • An estimate cost savings by farmers planting HT soybean was $71.3/ha in 2012, almost three times higher compared to the early years of adoption. The annual total national farm income benefit from HT soybean has dramatically risen from $5 million in 1996, to nearly $6.07 billion in 2012.1
  • Glyphosate- and glufosinate-resistant corn reduced the herbicide use in corn production by 18.5 million pounds (15.2 and 3.3 million pounds, respectively) in 2004. US farmers saved $139 million from the reduced pesticide use.5
  • The US is estimated to have enhanced farm income from biotech crops by $53.1 billion in the period 1996 to 2012.1

Canada

  • HT canola has boosted the total canola production in Canada by 11% in 2012. Adopters of biotech canola earned $446 million in 2012.1
  • The net increase in farm income by HT maize farmers in 2012 was $12.2 million.1
  • Canada is estimated to have enhanced farm income from biotech crops by $4.9 billion in the period 1996 to 2012.1

Spain

  • Bt maize adoption in Spain in 2012 resulted in yield increases of 6.3% on average, the net impact on gross margin $320.3 per hectare. 3 Farmers also experienced savings on pesticide use by $8.24ha 13

Australia

  • For 2012, Australian farmers planting IR cotton have significant cost savings of about $186-270/ha despite the high cost of technology.  In 2012, net farm income at the national level was $766 million. 1

Has adoption of biotech crops also benefited small-scale farmers in developing countries? The developing country experiences above provide the answer.

Developing Country Experiences

Bt cotton adoption in India

Cotton is a very important crop for India, accounting for 30% of its agricultural GDP. However, due to the high incidence of pests, especially the cotton bollworms, India falls short of the worlds average yield of cotton by 48%, an equivalent of 280 kg/ha2. Indian farmers often lose up to 50-60% of their crop to the cotton bollworm.10 With the commercialization of Bt cotton in India in 2002, the cyclic infestation of bollworm has been suppressed.

In 2013, India ranks first in biotech cotton production worldwide, which produced 10.8 million hectares, followed by China (4.2 million hectares), USA (3.7 million hectares), and Pakistan (2.8 million hectares)9. Adoption of Bt cotton started in 2002 with 3 hybrids planted in six Indian states: Andhra Pradesh, Gujarat, Madhya Pradesh, Karnataka, Maharashtra and Tamil Nadu.2 By 2013, there were 1,097 Bt cotton hybrids approved for planting and a total of 10.8 million hectares of Bt cotton plantations in India.3  

Fourteen studies on the impact of Bt cotton were conducted from 1998 to 2013. The results showed that yield increased by about 31 percent and insecticide spraying reduced by 39 percent, which translate to 88 percent increase in profitability (US$250/ha).

Qaim and Khouser (2013) conducted a study involving 1,431 farm households in India from 2002 to 2008 to investigate the effect of Bt cotton on farmers’ family income and food security. According to the findings, the adoption of Bt cotton has significantly improved calorie consumption and dietary quality, leading to increased family income. The technology reduced food insecurity by 15-20% among cotton-producing households.

Year

Total cotton area (Mha)

Hectarage (Million Has.)

2002-03

7.7

0.05

2003-04

7.6

0.1

2004-05

8.9

0.5

2005-06

8.9

1.3

2006-07

9.2

3.8

2007-08

9.4

6.2

2008-09

9.4

7.6

2009-10

10.3

8.4

2010-11

11.0

9.4

2011-12

12.2

10.6

2012-13

11.6

10.8

Source: ISAAA

 

Bt Corn Adoption in the Philippines

A common corn pest in the Philippines is the Asiatic corn borer which causes  losses of up to 80% of production. Across the country, corn yield levels averaged only 2.8 tons per hectare.

The Philippine government approval of the commercial release of Bt corn marked the first time that a GM food/feed crop was ever approved for planting in Asia. Initial plantings of Bt corn for the first year commercialization (2003) covered more than 10,000 hectares. Together with other biotech corn varieties (herbicide tolerant and Bt-HT), the total hectarage in the wet and dry seasons in 2013 was 795,000 hectares, up from 750,000 hectares in 2012.

Adoption of Bt corn in the Philippines provided the following benefits to small-scale farmers:2,4,6
•     Yield advantage of about 1.1 ton/ha or 30% yield increase over conventional corn hybrids
•     Pesticide cost reduction by as much as 56%
•     Profit gain of PhP10,132/ha (US$180), with PhP168/ha savings in insecticide costs
•     Increased net profitability by 4-7% during wet season, and 3-9% during dry season
•     Premium price for Bt corn because of good quality grains

In general, socio-economic studies on biotech corn confirmed that the technology has positive impact on small and resource-poor farmers and corn producers in the Philippines.

Bt rice in China

Rice is the most important crop in China, with the highest level of production accounting for 28% of the world’s total production.11 Because of the importance of rice, biotech research are being conducted to combat insect pests in rice. It was estimated that the decrease in rice yield due to insect damage is estimated to cost at least several billions of dollars worldwide.12

In China, insect-resistant GM rice have been approved for food, feed, and cultivation in 2009.
To establish whether farmers welfare improved by planting GM rice, farm surveys of randomly selected farm household that cultivated the biotech crop were conducted.

The surveys showed that small and poor farm households who adopted GM insect-resistant rice benefited by having higher crop yields and lower pesticide usage compared to non-GM adopters. GM rice yields were 6 to 9% higher compared to conventional varieties and it required less pesticide input by as much as 80% or 16.77 kg/ha, which contributed to improved health to farmers.7

Conclusion

The increasing number of farmers who have grown GM crops both in the developed and developing countries is strong evidence of their advantages in agricultural production and value to farmers. In 2013, after 18 years of GM crop adoption, an accumulated hectarage of more than 1.5 billion hectares, were planted by 18 million farmers. This unprecedented high adoption rate reflects the trust and confidence of millions of farmers in crop biotechnology.3 Experiences of small farmers from China, South Africa, the Philippines and other developing countries using GM crops clearly show that small farmers can also benefit from the technology. The most consistent observation from these countries is that growing GM crops is a profitable farming endeavor.

References

  1. Brookes, G. and P. Barfoot. 2014. GM Crops: Global Socio-economic and Environmental Impacts 1996-2012. PG Economics Ltd, UK. pp 1-189.
  2. James, C. 2013. Global Status of Commercialized Biotech/GM Crops: 2013. ISAAA Briefs No. 46. ISAAA: Ithaca, NY.
  3. Yorobe, J.M., C.B. Quicoy, E.P. Alcantara and B.R. Sumayao. 2004. (In Press) Impact assessment of Bt corn in the Philippines. University of the Philippines Los Baños, College, Laguna, Philippines.
  4. Sankula, S., G. Marmon, and E. Blumenthal. 2005.  Biotechnology-Derived Crops Planted in 2004 - Impacts on US Agriculture. Available at http://www.ncfap.org
  5. Canola Council of Canada. 2001. An agronomic and economic assessment of transgenic canola. Canola Council of Canada, January.
    http://www.canola-council.org/production/gmo_toc.html
  6. Brooks, G. 2003. The farm level impact of using Bt maize in Spain. Crop Biotech Brief, 3(3), Global Knowledge Center on Crop Biotechnology, ISAAA SEAsiaCenter. http://www.isaaa.org/kc
  7. J. Huang, R. Hu, S. Rozelle, and C. Pray. 2005. Insect-Resistant GM Rice in Farmers’ Fields: Assessing Productivity and Health Effects in China. Science, 308, 688-690.
  8. Sen, A. 2005. Cotton Scenario in India. www.indiaonestop.com/cotton/cotton.htm
  9. Shetty, PK. 2004. Socio-ecological Implications of Pesticide Use in India. Economic and Political Weekly, December 4, Vol 39, No 49, pp 5261-5267.
  10. Hsiaoping, C. 2005. Rice Consumption in China: Can China Change Rice Consumption from Quantity to Quality? Rice is life: scientific perspectives for the 21st century. Session 17. 497-499.
  11. Xue, QZ, Duan XL, Xu DP, Wu R Production and testing of insect-resistant transgenic rice plants. Rice Genetics III IRRI, DAPO Box 7777 Manila, Philippines 1996.239-246
  12. Brooks G. 2003. The farm level impact of using Bt maize in Spain. Crop Biotech Brief, 3(3), Global Knowledge Center on Crop Biotechnology, ISAAA.
  13. Qaim, M. and S. Khouser. 2013. Genetically modified crops and food security. Plos One. June 5, 2013.  http://www.plosone.org/article/info%3Adoi%2F10.1371%2Fjournal.pone.0064879.

*Updated August 2014

Next Pocket K: Bt Insect Resistant Technology