| We used a double bounded (DB) Contingent Valuation (CV) methodology on a sample of 345 farmers from Minnesota and Wisconsin to obtain estimates of farmers' willingness-to-pay (WTP) for corn seeds with fertilizer saving (FS) and drought tolerance (DT) traits. Two versions of each trait were presented for farmer valuation---one obtained by genetic modification (GM) and one obtained via traditional breeding (nonGM). This allowed comparison of factors affecting WTP for a nonGM version with those affecting WTP for a GM version.;The objective was to study adoption potential and understand which farm and farmer characteristics affect farmers' WTP for these traits. In total, four traits were considered: FS-GM, FS-nonGM, DT-GM, and DT-nonGM. The estimated mean WTP's, in dollars per acre, were ;Farmers specialized in nonGM corn showed willing to pay less for GM versions. Otherwise, factors affecting adoption of nonGM and GM versions were similar. The largest positive effect was observed for early adopters whom showed willing to pay between ;Being a nonGM specialist also asymmetrically affected (reduced) the probability of participation in the CV market exercise---a larger non-response rate was observed for CV questions regarding the GM versions. We estimated a DB-Dichotomous Choice Sample Selection model and found no evidence of sample selection. Therefore, we hypothesize the reason for a lower participation rate was lack of familiarity with GM crop production practices and subsequent inability to construct valuations. |
