Does On-Farm quality Assurance Pay? A Cost-Benefit Analysis of the GrainSafe Program

Umit Karaca (), Dirk Maier () and Corinne Alexander
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Umit Karaca: Department of Agricultural and Biological Enginering, College of Agriculture, Purdue University
Dirk Maier: Department of Agricultural and Biological Enginering, College of Agriculture, Purdue University

No 06-02, Working Papers from Purdue University, College of Agriculture, Department of Agricultural Economics

Abstract: Since the introduction of genetically modified (GM) crops, the commodity grain system has been under pressure to segregate GM and non-GM crops. Starting at the level of the grain handler, members of the grain supply chain have successfully used quality assurance and identity preservation programs to segregate non-GM crops. Producers delivering high value, identity preserved crops have become interested in implementing these quality management systems at the farm level. We conduct a cost-benefit analysis that shows that quality assurance program may be profitable for producers, depending on their farm size and equipment management strategy.

Keywords: on-farm quality assurance; identity preservation; cost-benefit analysis; @Risk (search for similar items in EconPapers)
JEL-codes: D81 Q16 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-agr
Date: 2006-02

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Journal Article: Does On-Farm Quality Assurance Pay? A Cost-Benefit Analysis of the Grainsafe Program (2007)
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Persistent link: http://EconPapers.repec.org/RePEc:pae:wpaper:06-02

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