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Biotechnology Crop Study Shows Boost to U.S. Grower Income, Other Benefits (10-27-04)

The National Corn Growers Association (NCGA) is encouraged by the results of a new study that found biotech crops, including corn, increased farmer income, boosted yields, reduced pesticide use and spurred greater use of environmentally friendly no-till agriculture in 2003.

The study, conducted by the National Center for Food and Agriculture Policy (NCFAP), suggests that six biotech crops – corn, soybeans, canola, cotton, papaya and squash – increased grower income by an additional $1.9 billion in 2003. Biotechnology boosted crop yields by 5.3 billion pounds last year.

Darrin Ihnen, chair of NCGA’s Biotech Working Group, said the report underscores the value of biotechnology to corn growers.

“This report demonstrates that farmers benefit from having biotech crops available to them. Nearly half of this year’s record corn crop will come from biotech hybrids,” said Ihnen, who farms near Hurley, S.D. “For my farm, biotech crops allow me to achieve higher yields, higher income and do less fieldwork.”

Biotech corn, especially corn-borer resistant hybrids, was found to produce the highest yield gains. In 2003, biotech corn increased yields by 4.9 billion pounds, resulting in an additional $258.4 million in farm income.

Growers in Iowa, Illinois and Minnesota benefited the most from the use of biotech crops, particularly corn and soybeans, the report says. Iowa led the way in increases in production, net economic impact and reductions in pesticide use. The state reduced pesticide use by 7.5 million pounds and increased farm income by $239 million. In the 47 states surveyed, biotech crops reduced pesticide use by a total of 46.4 million pounds in 2003.

“Opponents of biotech crops often overlook the environmental benefits the technology offers,” Ihnen said. “Herbicide-tolerant and insect-resistant hybrids significantly reduce the need for pesticides and other traditional crop protection products.”

According to the U.S. Department of Agriculture, corn growers planted biotech corn seed on 46 percent of their acreage this year, up 6 percent from 2003. The NCFAP report indicates the number of farmers who use biotech crops will continue to increase as new and improved hybrids are brought to market. Seed supply has been the limiting factor, the report says, and as more rootworm-resistant seed becomes available in the marketplace, the number of acres planted with the crop is expected to increase significantly.

The report also notes that since biotech crops were commercialized in 1996, U.S. farmers have increased their acreage of no-till corn by 14 percent. The benefits of no-till agriculture include reduced fuel consumption, decreased machinery wear, reduced input rates and improved habitat for wildlife.

Growers make biotechnology decisions based on the needs of their customers, Ihnen noted, and corn producers will readily continue to serve markets that demand both conventional and biotech corn.

An executive summary of the NCFAP report is available on the NCGA Web site.

Last reviewed October 27, 2004



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