The Economics of Bt Corn: Valuing Protection from the European Corn Borer

Jeffrey Hyde, Marshall A. Martin, Paul Preckel () and C. Richard Edwards

Review of Agricultural Economics, 1999, vol. 21, issue 2, 442-454

Abstract: Corn that carries a gene from the natural soil bacterium Bacillus thuringiensis kurstaki, or Bt, has given farmers a potentially powerful tool to protect against European corn borer (ECB) damage. European corn borers are responsible for losses of $1–$2 billion per year in the United States. This study analyzed the economic value of Bt corn under Indiana conditions. Results suggest that the value of the protection offered by Bt corn is generally lower than the current seed premiums in Indiana. The economic value of Bt corn may exceed the current premiums for farmers with higher-than-average yields or who have a 40% or greater probability of an ECB infestation.

Date: 1999
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