Farmers planting Bt corn earn more than non-users

Now it can be said: Farmers planting genetically modified (GM) Bt corn can earn much more than those growing other varieties.

"The Bt corn has an advantage of more than P1 per kilogram in return over the non-Bt varieties. As a whole, the increase in total revenue amounted to P14,849 per hectare," reported Dr. Jose Yoroba of the University of the Philippines Los Baños-College of Economics and Management (UPLB-CEM).

Dr. Yoroba conducted an exhaustive study titled "Economic impact of Bt corn in the Philippines and concluded: "The BCR (benefit cost ratio) of 2,014 clearly indicates the better performance of Bt corn farms in the country."

Bt stands for Becillus thuringiensis, a bacterium that naturally occurs in soil. Through genetic engineering technique, a specific gene of Bt has been introduced into a corn variety. The Bt corn produces its natural pesticide against the destructive Asian corn borer.

Dr. Yoroba’s study covered 107 Bt and 363 non-Bt corn farmers interviewed during the wet and dry seasons of crop year 2003-2004 in Isabela, Camarines Sur, Bukidnon, and South Cotabato.

The research was supported by the International Services for the Acquisition of Agri-biotechnology Applications (ISAAA).

A comparison of mean yield per hectare of Bt and non-Bt corn farms across locations showed that Bt corn farms had a yield advantage of 34 percent over the nonusers, the UPLB-CEM economist reported.

The average yield in Bt corn farms was 4,850 kilograms per hectare in contrast to 3,610 kg/ha obtained by the nonusers.

Other findings of the study:

• Planting the Bt corn variety coupled with good management shifted the production function upward, thereby reducing per unit cost.

• Insecticide use by Bt corn farmers was reduced.

• Total production cost per kilo of Bt corn was lower.

• Educational level attained by the farmers, hard labor, net income, agricultural training, and risk significantly influenced Bt corn adoption.

• Older farmers with larger farm sizes and who were spending more on insecticides were less likely Bt corn adopters. Risk-averse producers were also less likely to adopt the Bt corn.

Dr. Yoroba noted that the aggregate impact of Bt corn adoption in terms of net benefit was largest in northern Luzon with P20.9 million. Farmers in other regions received lesser benefits owing to less area devoted to Bt corn and minimal cost reduction per unit of production.

"As a whole, adoption of Bt corn showed a significant impact on the farm financial performance," he concluded. – Rudy A. Fernandez