Recent Study Weighs Up Economic Benefits of GM Crops

According to a new study by the European Commission’s Joint Research Centre (JRC) on the economic impact of genetically modified crops worldwide, farmers derive economic benefits from growing GM crops not because of the increased yield, but due to savings on herbicides, pesticides and machinery. Weighing up the economic impacts, the report finds that for some GM crops, such as herbicide tolerance (HT) soybean in the United States and Bt maize in Spain, the difference between their yield and that of conventional crops is almost negligible. However, the yield of some other GM crops, like the pest resistant cotton (Bt), has been much higher than non-GM crops.

GM farmers agreed that they have made money elsewhere with the introduction of these crops. In the US, farmers of the HT soybean reported net savings in weed control, tillage, labor and machinery costs, which outweigh the higher seed costs and small yield gain. Similarly, Bt cotton farmers in China and India said they were using less insecticide per hectare. However, farmers in the US found that the money gained from using less pesticide was offset by the high price of GM seeds.

In addition to looking at the economic benefits of GM crops, the report also forecasts the benefits should more EU countries decide to grow such crops. It also includes an estimate of the potential costs that farmers may incur in order to adhere to the EU guidelines on co-existence - the separation of organic, traditional and GM crops.

The news release can be accessed at http://cordis.europa.eu/fetch?CALLER=FP6_NEWS&ACTION=D&DOC=7&CAT=NEWS&QUERY=1167449917996&RCN=26856