Rent creation and distribution from biotechnology innovations: The case of bt cotton and Herbicide-Tolerant soybeans in 1997

We examine the distribution of welfare from the second‐year planting of Bt cotton in the United States in 1997. We also provide preliminary estimates of the planting of herbicide‐tolerant soybeans in 1997. For Bt cotton, total increase in world surplus was $190.1 million and US farmer share of total...

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Bibliographic Details
Published in:Agribusiness (New York, N.Y.) N.Y.), 2000, Vol.16 (1), p.21-32
Main Authors: Falck-Zepeda, Jose B., Traxler, Greg, Nelson, Robert G.
Format: Article
Language:English
Subjects:
Biotechnology
Consumers
Cost control
Cotton
Economic models
Economic rent
Efficiency
Farmers
Genetic engineering
Herbicides
Innovations
Intellectual property
Monopolies
Profits
Seeds
Soybeans
Studies
Supply & demand
Technological change
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Summary:We examine the distribution of welfare from the second‐year planting of Bt cotton in the United States in 1997. We also provide preliminary estimates of the planting of herbicide‐tolerant soybeans in 1997. For Bt cotton, total increase in world surplus was $190.1 million and US farmer share of total surplus was 42%. The gene developer, Monsanto, received 35% and the rest of the world 6% of the total world surplus. Delta and Pine Land received 9%, whereas US consumers received 7%. For herbicide‐tolerant soybeans, total world surplus was $1,061.7 million. US farmers' surplus was 76%, Monsanto's was 7%, US consumers received 4%, and seed companies captured 3% of total surplus. [Econolit: Q120, D600, O330] © 2000 John Wiley & Sons, Inc.
ISSN:0742-4477
1520-6297
DOI:10.1002/(SICI)1520-6297(200024)16:1<21::AID-AGR3>3.0.CO;2-F