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Econometric analysis of genetically modified organism adoption: a study of Ohio grain farmers

Darr, David Allen

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2001, Master of Science, Ohio State University, Agricultural, Environmental and Developmental Economics.
The topic of genetically modified organisms (GMOs) in agriculture has opened a broad series of questions, dilemmas, and issues that researchers are searching for answers to. This thesis examines adoption of GM soybeans and com in Ohio, an important crop producing state. The objectives for this study include (1) estimating adoption of GMOs in Ohio, (2) identifying variables significant to the adoption decision-making process of the farmer, and (3) estimating a premium level that measures if farmers hold a higher perceived value for non-GM crops than for GM crop varieties. A survey of Ohio farmers was conducted and 257 responses were received. In order to identify variables significant to the decision-making process, Tobit econometric models were estimated using Pooled 1999-2000 data and 2000 data. For the sake of comparison, models were run for share of acreage as well as acreage. Lagged adoption was consistently the most significant variable in estimation. Other consistently significant variables included decreased pesticide use as the primary benefit of adoption being positively correlated to adoption, and the farmer having the ability to segregate being positively correlated to adoption. No production costs or demographic variables were consistently significant across models or commodities. 2000 Share estimations consistently provided the most explanatory and robust models. To estimate a desirable premium level for growers, contingent valuation willingness to accept compensation (WAC) methods were utilized. An optimal premium level was established for non-GM com ($0.063 per bushel) although soybean estimation did not result in a logically correct value ($-0.017 per bushel). Differences in adoption rates and attitudes towards GMOs were found between observations with positive WAC values and those observations with negative WAC values in order to explain the estimated results. Those farmers who perceive little risk from GM soybeans see little benefit from non-GM crops. Utilization of contingent valuation methodology for market goods is a new area that needs further development. A valuable implication from this is that as long as some farmers have perceived risk for GM crops that is outweighed by the perceived value of non-GM varieties, GM soybeans and com will never gain complete market share.
Wen S. Chern (Advisor)
Ian Sheldon (Committee Member)
185 p.

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Citations

  • Darr, D. A. (2001). Econometric analysis of genetically modified organism adoption: a study of Ohio grain farmers [Master's thesis, Ohio State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=osu1406713062

    APA Style (7th edition)

  • Darr, David. Econometric analysis of genetically modified organism adoption: a study of Ohio grain farmers. 2001. Ohio State University, Master's thesis. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=osu1406713062.

    MLA Style (8th edition)

  • Darr, David. "Econometric analysis of genetically modified organism adoption: a study of Ohio grain farmers." Master's thesis, Ohio State University, 2001. http://rave.ohiolink.edu/etdc/view?acc_num=osu1406713062

    Chicago Manual of Style (17th edition)