www.checkbiotech.org ; www.raupp.info ; www.czu.cz

Growing genetically modified (GM) crops can bring farmers economic benefits.
But these are made from savings on herbicides, pesticides and machinery, not
from higher yields, as was previously thought, according to a new study by
the European Commission's Joint Research Centre (JRC) on the economic impact
of GM crops worldwide, December 2006.

It is now more than 10 years since the first GM crops were introduced into
agriculture. In that time, GM crops of cotton, maize, rapeseed and soybean
have quickly been taken up in many areas of the world. It is estimated that
the number of GM crops sown has gone from 2.8 million hectares in 1996 to 90
million hectares inn 2005.

Overall, more than 20 countries worldwide grow GM crops, of which 7 are
high-income economies, and 14 are developing countries. Currently Spain is
the only country in the EU farming a GM crop for commercial purposes at a
significant rate.

The report was carried out by the JRC's Institute for Prospective
Technological Studies (IPTS) within the framework of 'Sustainable
Introduction of GMOs into European Agriculture (SIGMEA) - a project funded
by the Sixth Framework Programme (FP6).

Weighing up the economic impacts, the report finds that for some GM crops,
the difference between their yield and that of conventional crops is almost
negligible. A 2000 study of Delaware farmers in the US reported only a small
increase in the crop yield of herbicide tolerance (Ht) soybean compared to
traditional crops. In another sample, farmers growing Ht soybean reported
that they spent on average ?13 per hectare more on seeds than before.

However, the yield of some other GM crops, like the pest resistant cotton
(Bt), has been much higher than non-GM crops. The study refers to reports
from China, India, Argentina and South Africa of yields from Bt cotton crops
which are anything between 10% and 87% higher than conventional cotton. In
Spain, farmers growing Bt maize reported that the average yield over three
seasons was just under 5% higher than that from traditional crops.

Whether yields are higher or not, GM farmers have found that they have made
money elsewhere thanks to the introduction of these crops. In the US,
farmers of the HT soybean reported net savings in weed control, tillage,
labour and machinery costs, which outweigh the higher seed costs and small
yield gain.

Similarly, Bt cotton farmers in China said they were using five times less
insecticide per hectare, while in India, farmers estimated that less use of
pesticide corresponded to savings of ?25 per hectare. However, farmers in
the US found that the money gained from using less pesticide was offset by
the high price of GM seeds.

In addition to looking at the economic benefits of GM crops, the report also
forecasts the benefits should more EU countries decide to grow such crops.
It estimates that if 75% of French rapeseed farmers grew the GM variant,
they would save ?24 million in weeding costs per season. Similar benefits
were calculated in the UK. Assuming that all sugarbeet growers in the UK
grew the herbicide resistant crop, the report estimates average total
savings of ?33.5 million a year.

Finally, the report throws light on the potential costs that farmers may
incur in order to adhere to the EU guidelines on co-existence - the
separation of organic, traditional and GM crops. The main measures
considered are the cleaning of harvesting machinery, the introduction of
isolation distances between GM and ordinary crops, and the planting of
buffer strips of ordinary crops around GM plots.

Using empirical evidence, the authors of the report estimate that these
measures would increase a GM maize farmer's costs by ?84 per hectare.
Farmers would also have to pay a fixed levy per hectare to cover the
possible economic losses of non-GM farmers. These measures could possibly
weigh against GM varieties when farmers are considering whether to cultivate
them, concludes the report.

To read the report in full, please visit:
[www.jrc.es]

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