Bt Cotton


USA Case Study

 

Country Profile
Population
273 million
Arable as % of total land
19%
Agriculture as % of GDP
1.3%
Agriculture as % employment
3%
Cotton area (ha)
5.7 million
Lint production (MT)
4.5 million
No. of cotton farmers
30,000
  1. Introduction
  2. Cotton Insect Pests and Crop Losses
  3. Adoption of Bt Cotton
  4. Yield Advantage of Bt Cotton
  5. Reduction of Insecticides
  6. Overall Economic Advantage of Bt Cotton
  7. Distribution of Benefits
  8. Highlights

 

A. Introduction

In 2001/02 the US grew 5.7 million hectares of cotton with a lint yield of 790 kg/hectare for a total production of 4.5 million MT. The US is by far the largest exporter of cotton (2.4 million MT) representing almost 15% of global exports of 19.9 million MT. The US has the second largest area of cotton in the world (5.6 million hectares) after India (8.7 million hectares) and is the second largest producer (4.5 million MT) after China (5.3 million MT).

Cotton is the fifth largest crop in the US by area and in recent years the value of the crop has been about $4 billion. Cotton is grown in the south and in the west in 16 states. Texas is the largest producer of cotton (30%), followed by Georgia. Cotton production systems range from low input rainfed cotton in Texas to the very intensive systems of Arizona, California and New Mexico. There is an extensive literature on Bt cotton in the US that includes several comprehensive reviews (Gianessi et al 2002, Carpenter et al 2002, Benedict and Altman 2001, Edge et al 2001, Carpenter and Gianessi 2001). The aim in this case study, is to provide a brief overview of Bt cotton in the USA.

 

 

B. Cotton Insect Pests and Crop Losses

Of the lepidopteran pests, the cotton bollworm (Helicoverpa zea), pink bollworm (Pectinophora gossypiella) and tobacco budworm (Heliothis viriscens) are the major pests of economic importance. These three pests are often called the bollworm/budworm complex. Boll weevil, Anthonomus grandis, is also important but a rigorous scheme is underway to eradicate this pest. Other secondary lepidopteran pests include beet and fall armyworms, loopers and cutworms.

The potential losses due to insects, in the absence of any form of control in the US is estimated at 38% and the actual losses that occur despite the application of control is estimated at 11% (Oerke 2002). More detailed surveys of losses due to cotton insects in the US indicate that crop losses range from 4.5% in 2001 to 11% in 1995 (www. msstate.edu/entomology/cotton). The average loss reported for the 18 year period 1979 to 1996 was 7.5% (Williams 1997b) with the bollworm/budworm complex reported to be the most important pest in 13 out of the 18 years.

For the period 1994 to 2001 cotton insect losses in the US have ranged from 4.5% in 2001 to 11.1% (Table 17) with the value of loss per hectare ranging from $65/hectare to $145/hectare with an average of approximately $100 per hectare. This translates to an annual loss of approximately $500 million at the national level in the US. In addition to the $ value of crop loss, the US data in Table 11 also includes the cost of control, the major portion of which is insecticides and their application. During the period 1994 to 2001, control cost ranged from $113/hectare to $158/hectare. Taking into account both crop loss and the cost of control, which is the total cost to US farmers associated with cotton insect pests, this ranged from $187/hectare to $293/hectare which is substantial; these translate to annual losses in the US due to insect pests of $1.0 billion to $1.7 billion.

 

Table 17.

Losses Due to Cotton Insect Pests in the US and Cost of Control by Insecticides and Other Means, 1994 to 2001

 
Yield Loss
Yield Loss
Control Costs
Loss + Control

Value of Loss and Control (National US)

 

%

$/Ha

&/Ha

$/Ha

1994

6.0

65

123

187

$1.0 billion

1995

11.1

140

145

285

$1.7 billion

1996

6.6

110

113

225

$1.2 billion

1997

9.4

145

133

278

$1.5 billion

1998

8.0

128

158

286

$1.2 billion

1999

7.7

108

125

233

$1.3 billion

2000

9.3

138

155

293

$1.7 billion

2001

4.5

67

130

197

$1.2 billion

Source: M.R. Williams, 2002a.  www.msstate.edu/Entomology/Cotton.html
 

 

 

C. Adoption of Bt Cotton

Bt cotton (Cry1Ac), developed by Monsanto and Delta Pine Land, was introduced in 1996, principally to control the three major pests: tobacco budworm, cotton bollworm and pink bollworm. In the US, in the mid south and south east, cotton bollworm and tobacco budworm are the most prevalent pests, whereas pink bollworm is the most prevalent in the western states. Before the introduction of Bt cotton in 1996, 75% of the cotton area was treated with insecticides and an average of 2.4 sprays were specifically applied to control the bollworm/budworm complex which was estimated to cause a loss of 4%, despite the application of insecticides (Carpenter and Gianessi 2001). In 1995, the year prior to the introduction of Bt cotton, tobacco budworm infestations were particularly high causing estimated losses of 29% in Alabama (Williams 1996). This was due to the development of resistance to the insecticides used.

The increase in adoption, depicted in Table 18, indicates a high rate of adoption starting from 14% in 1996 to 34% in 2001 (Edge et al 2001); these estimates are based on USDA/NASS data, whereas USDA.AMS data indicate that the percentage Bt in 2001 was 39%. Over 2 million hectares of Bt cotton were grown in the US in 2001; they include varieties with the single Cry1Ac Bt gene (10% of all Bt cotton) and varieties with the stacked genes of Bt and herbicide tolerance (90%).

 

Table 18.

Adoption of Bt Cotton in the USA

Year

US Cotton Area

Bt Cotton Area

Bt Cotton Area

Million Hectares
Million Hectares
(% of Total)

1996

5.20

0.73

14

1997

5.40

1.05

20

1998

4.30

1.17

27

1999

5.90

1.58

27

2000

6.20

2.10

34

2001

6.20

2.08

34

Sources: www.usda.gov/nass;  Edge et al., 2001. Reproduced with the permission of the authors, from the Journal of Cotton Science and the Cotton Foundation, Memphis, TN, USA. 
   

 

 

D. Yield Advantage of Bt Cotton

Extensive field trials in the US report a range of results indicating that on average, Bt cotton will yield 10% or more than conventional varieties (Perlak et al 2001). In a 55 field comparison Kerby (1996) reports an average increase of 18% with a range of 15 to 21% (Table 19). Benedict and Altman (2001) report an average yield increase of approximately 14%, equivalent to 175 kg/hectare of lint.

 

Table 19.

Lint Yields for Bt Cotton Varieties and Their Non-Bt Near Isogenic Parents

Variety

Lint Yield

Yield Difference (Kg/Ha)

% Yield Change

 
(Kg/Ha)
(Bt minus non-Bt)
(Bt versus non-BT)

NuCOTN33B Bt

1,215

+ 207

+20.5%

DP5415 non-Bt

1,008

   

NuCOTN35B Bt

1,117

+143

+14.7%

DP5690 non-Bt

974

   

Average NuCOTN Bt

1,167

+176

+17.7%

Average non-Bt

991

   
Sources: Benedict and Altman, 2001. Data reproduced with permission of authors, J.H. Benedict and D.W. Altman from the chapter 'Commercialization of Transgenic Cotton Expressing Insecticidal Crystal Protein' pp.137-201 in J.J. Jenkins and S.Saha (ed) Genetic Improvement of Cotton: Emerging Technologies. Published by Science Publications, Enfield, N.H., USA.
  1  Data from 55 field trials in 1994-1995
   

It is evident that the yield advantage of Bt cotton will be dependent on many factors particularly the infestation level of pests, which will vary from year to year and state to state. Taking these variables into account the National Center for Food and Agricultural Policy (Carpenter and Gianessi 2001, Gianessi et al 2002) have estimated the increase in production of cotton in the US in 1998, 1999 and 2001 (no estimate was generated for 2000). The data in Table 20 indicate that the yield advantage of Bt cotton in 1998 was 80,704 metric tons (MT), 117,935 MT in 1999, (2000 data not available) and 84,085 MT in 2001. Thus, in 2001 Bt cotton produced an average of 40 kg/hectare more yield, on 2.08 million hectares for a total gain of 84,085 MT valued at $115 million or approximately $50/hectare.

 

Table 20.

US National Benefits from Bt Cotton

 

Production Increases

Insecticide Reduction

National Benefit $M

Benefit

Bt Cotton

 
MT
MT
 
$/Ha
Ha Million

1998

80,704

907

92

84

1.10

1999

117,935

1,224

99

52

1.89

2001

84,085

848

103

50

2.08

Sources: Carpenter and Gianessi, 2001; Gianessi et al., 2002.
   

 

 

E. Reduction of Insecticides

Bt cotton has led to a consistent decrease in the number of insecticide sprays required. Benedict and Altman (2001) estimate that the overall average reduction is 2.2. This is consistent with other estimates which calculate a reduction of approximately 2. In terms of active ingredients, Benedict and Altman calculated that in 1998 this translated to a saving of 1.09 million kg (a.i.) of insecticide equivalent to 1,090 MT on 1.1 million hectares of Bt cotton. The estimate of Carpenter and Gianessi (2001) for 1998 is of the same order as Benedict and Altman (2001) at 907 MT. Savings of insecticides for the three years 1998, 1999 and 2001 are detailed in Table 20 (2000 data not available). The data indicate that on average about 1,000 MT of insecticide (a.i.) was saved annually. For 2001, when infestation of lepidopteran pests was the lowest in recent years, 848 metric tons of insecticide (a.i.), equivalent to 0.45 kg/hectare was saved (Gianessi et al 2002, Carpenter and Gianessi 2001).

There are secondary benefits associated with the deployment of Bt cotton, requiring less insecticide, which include the following: more favorable environment for non-target predatory insects that act as biological control agents for secondary pests; less insecticide pollution of soil; less contamination of water sources and aquifers with insecticide run off; more favorable environment for wild life, e.g. birds that depend on insects for food; less packaging for insecticides reducing waste; lower application costs; more flexible insect control programs, etc.

 

 

F. Overall Economic Advantage of Bt Cotton

The yield increases and decreased costs of insect control associated with Bt cotton are partially offset by higher costs of seed for Bt cotton. Taking these factors into account, overall economic benefits for farmers in 1998 were estimated at $84/hectare equivalent to a national benefit of $92 million. Similarly, for 1999 the economic advantage of Bt cotton was $52/hectare for a national benefit of $99 million (Table 20) and for 2001 it was $50/hectare for a national benefit of $103 million (Carpenter and Gianessi 2001;Gianessi et al 2002). These estimates are of the same order as EPA estimates that range from $60 to $ 126 million annually. Thus, in summary the overall economic benefit for Bt cotton growers in USA is $50/hectare to $85/hectare, (after deducting additional costs related to seed and insect protection), which translated to approximately $100 million/year for the 2 million hectares of Bt cotton in the US in 2001 at current world prices of cotton.

 

 

G. Distribution of Benefits

One of the “corporate concerns” often voiced by the critics of biotechnology relates to their perception that the developers of GM crops, usually transnationals, are the major or sole beneficiaries from GM crops. On the contrary, analyses of Bt cotton in the US over the 3 year period 1996 to 1998, consistently show that farmers have been the major beneficiaries. Data in Table 21 indicate that farmers gained 59%, 42% and 46% of the total surplus in 1996, 1997 and 1998 respectively, compared with 21%, 35% and 34% for the technology developers and only 5%, 9% and 9% for the seed supplier. Thus on average farmers capture approximately 50% of the surplus compared with 30% for the technology developers. The share of benefit to consumers can be expected to increase, as the higher Bt cotton yields will increase supply and decrease prices, thereby providing consumers with more affordable cotton.

 

Table 21.

Distribution of Economic Surplus Expressed as % from Bt Cotton in the USA

Beneficiary

19961

19972

19983

Farmers

59

42

46

Technology Developers

21

35

34

Seed supplier

5

9

9

Consumers

9

7

7

Net Rest of the World

6

7

7

Total

100

100

100

Sources: James, 2001 from following resources: 1Falk-Zepeda et al., 2000b; 2Falk-Zepeda et al., 2000a; 3Falk-Zepeda et al., 1999.
   

 

 


H. Highlights

  • USA is the second largest producer of cotton in the world (4.5 million MT) and by far the largest exporter (2.4 million MT).
  • Bt cotton was introduced in the US in 1996 and currently occupies between 35 and 40% of the total cotton area of approximately 6.0 million hectares.
  • Benefits from Bt cotton include an average increase of 10% or more in yield, a reduction of 2.2 insecticide sprays that translated to approximately 850 MT less insecticide used in 2001, with significant positive implications for the environment.
  • These benefits, offset by the higher cost of Bt seed, result in an overall economic benefit of a minimum of $50 to $85 per hectare which translated to a national benefit of approximately $ 100 million in 2001.
  • Farmers are the major beneficiaries of the economic benefits from Bt cotton, capturing approximately 50% of total benefits compared with 30% for the technology developers.

Case Studies:

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