The adoption of genetically altered seeds: An ex ante empirical analysis of B.t. corn adoption in Minnesota

This thesis is concerned with the ex ante assessment of B.t. corn, a new genetically modified corn hybrid seed that is resistant to European corn borer (ECB). The adoption of this new technology by farmers in Southeastern and Southwestern Minnesota is analyzed. The study also examines the effects of farmers' decision to adopt the new technology on the amount of land allocated to conventional corn and soybeans. The development of new pest management technologies means little to a society until these technologies are put to use by farmers. The arrival of plant biotechnology is likely to make a significant contribution to improving agricultural productivity. There are many factors that affect farmers' decisions to adopt a new agricultural technology. In particular, B.t. corn will be adopted by producers in Minnesota if profits from adoption exceed returns without adoption.;Probit function analysis showed that location significantly affected farmers' perceptions about the potential damage from European corn borer (ECB). Censored regression analysis showed that on average, farmers were willing-to-pay (WTP) ;Probit function analysis showed that farm experience and sources of information do not affect the probability of adopting B.t. corn. Perception about ECB, total crop acreage, and ending net worth were all positively correlated with the likelihood of B.t. corn adoption. The probability of adopting B.t. corn increased with education.;Iterative seemingly unrelated regression analysis showed that both risk and wealth effects are important in B.t. corn-conventional corn-soybeans land allocation decisions. Results showed that the adoption of B.t. corn will decrease the land devoted to current corn varieties and will increase soybeans acreage demand. Results also showed that as the cost of adopting B.t. corn increases, farmers will allocate less land to current corn varieties and more land to both B.t. corn and soybeans.