| Sichuan has a long history of cotton planting which is an important cotton producing province in Yangtze River cotton planting areas. Cotton is an economic crop with a high commodity rate which plays an important role in increasing farmers' income and consumption. However, the cost of cotton planting is very high. Cotton needs a lot of fertilizers, pesticides and other substances. Especially, it needs much manpower to spray pesticides. There is little profits at the pest serious period. Genetically modified cotton can effectively reduce the incidence of pests, thus saving the material input and reducing the labour, are generally accepted by cotton-planting farmers. But, fear of potential threat to the ecological environment, policy-makers is hesitant in promotion.Sichuan has less land but a lot of people. The land quality is poor and the land waste is serious. The use of land is inefficient. Transgenic technology provides a new way to improve land use efficiency and increase the land productivity. This paper takes the genetically modified cotton as an example to analyse the change of the land use efficiency. The data comes from two ways: record cards and questionnaires. We surveyed 50 households, the input-output data includes 2004 to 2007. It discussed the land use efficiencies change from three dimensions which are economical benefit, ecological benefit and social benefit. The results are that transgenic cotton planting can effectively reduce agricultural inputs, increase farmers' income and improve the ecological environment of farmland, and can promote the farmers' health. Finally, the research suggests that the government should make progresses to regulate the seeds market; provide subsidies to the good seeds; increasing the funds of the genetic research; strengthen the construction of the agricultural technology system, training the farmers and teaching them the right methods to use the pesticides; encouraging producing low-residue, low-toxicity pesticides.
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