Why Do Some Bt-Cotton Farmers in China Continue to Use High Levels of Pesticides?

China was the first developing country to introduce Bt cotton on a large scale. This paper provides an indepth economic analysis of Bt cotton production by small-scale farmers in China. Data were collected in 2002 in Linqing County, in Shandong Province and comprised a season-long cotton production monitoring with 150 farmers and complementary household interviews. For quality assessment, the Bt toxin concentration of the various Bt varieties used by the farmers was determined for each plot. All farmers were growing insect resistant Bt cotton varieties. Yet, they sprayed high amounts of chemical insecticides, out of which 40% were extremely or highly hazardous. The paper reviews methodological issues inherent to impact assessment of crop biotechnology and identifies market and institutional failure as possible reasons for continued high pesticide use. Using the damage function methodology the coefficients for both damage control inputs, i.e., Bt varieties (measured as toxin concentration), and insecticide quantity were not significantly different from zero. Results show that absence of enabling institutions and lack of farmer knowledge can considerably limit the benefits of Bt cotton for small-scale farmers. The paper points out the importance to include the institutional conditions in the evaluation of agricultural biotechnology in developing countries.     

Potential of feed additives to improve the environmental impact of European livestock farming: a multi-issue analysis

Today, less than 3% of the 250,000 plant varieties available to agriculture are in use. Sources of (agricultural) biodiversity are under threat and disappearing in many regions. Increasing industrialisation of agriculture and top-down agricultural research have contributed to this dependence on a relatively few plant varieties. This article argues that new approaches to agricultural development research are needed to conserve agricultural diversity, improve crops, and produce food of quality for all. Such an approach should enable small farmers on marginal lands to participate as equal partners alongside agricultural scientists, fairly sharing their know-how, expertise and seeds. Three case studies illustrate how farmers and plant breeders are working together in a diversity of agro-ecological, socio-economic and political contexts to put these new approaches into practice. New forms of collaboration are producing an increase in diversity and a number of promising improved varieties in terms of yields, agronomic traits and taste. These varieties are showing better adaptation to the local environmental conditions without requiring extra external inputs. Long-term success requires that these efforts be backed up by supportive policies, by actions to ensure that policies are implemented, and where necessary by related legislation.     

The Evolving Structure of Chinese R&D Funding and its Implications for the Productivity of Agricultural Biotechnology Research

China’s research and development (R&D) policy has changed considerably over recent decades, and great changes occurred in 2006 when the main programme objective of China’s R&D changed from the 863 Programme and 973 Programme to the National Science and Technology Major Project. One topic that has drawn extensive attention is whether the investment reform improved R&D productivity in China. Using a unique panel dataset from 160 universities, this paper examines the effect of the investment reform on productivity improvement in China’s agricultural biotechnology sector. We use a panel count data model with a dynamic feedback mechanism to model the knowledge production process. Strong evidence indicates that the investment reform greatly contributes to knowledge output production in China’s agricultural biotechnology sector. We also find that the input quality is more important than the absolute quantity; human research capacity exhibits the greatest contribution to the output of patents; past knowledge accumulation helps produce more patents; and entry barriers to patent production exist in China’s agricultural biotechnology sector. Moreover, the patent explosion in China may have been largely caused by improvements in the human capital input quality.     

A trait-based model of the potential demand for a genetically engineered food crop in a developing economy

We predict the potential demand of smallholder farmers for genetically transformed varieties of a food crop, the cooking banana of the East African highlands. Farmer demand for planting material is derived in an agricultural household model that accounts for variety traits and missing markets. The demand for candidate host varieties is predicted using a Zero‐Inflated Poisson (ZIP) regression system. The fitted model is used to illustrate the sensitivity of farmer demand for improved planting material to (a) investments in research and development, represented by the effectiveness of gene insertion and expression, and (b) other public investments in education, extension, and market infrastructure that support diffusion. By comparing the characteristics of agricultural households we demonstrate that the choice of host variety can have social consequences, favoring one rural population compared with another. Clients for transgenic banana planting material are likely to be poorer, subsistence‐oriented farmers in areas greatly affected by biotic constraints. A model of this type might be useful in assessing the investments needed to support the systematic dissemination of improved planting material. The approach can be generalized to other crop biotechnologies for smallholder farming systems, particularly in developing economies.     

Building an Alliance for Biotechnology in Africa

Scholars and activists working from within a political economy perspective often fail to explore the distinct motives, interests and behaviours of powerful actors who appear to be working ‘as one’ on a common agenda. Such is the case in recent analyses of efforts to promote the use of biotechnology in Africa. While the critical literature largely focuses on the attempt to create what Peter Newell calls ‘bio‐hegemony’, the present paper explores the diverse interests and tensions that have to be worked out in order to build such pro‐biotechnology coalitions. I analyse the formation of an organization called the African Agricultural Technology Foundation to show how differences between two major pro‐biotech actors – the Rockefeller Foundation and the agricultural biotechnology industry – were negotiated, so that these actors could work together towards the goal of getting GM technologies used and accepted in Africa. In the process, I reveal the inward projection of power that occurred as the biotech companies effectively determined the structure and terms of this alliance.     

Taking agricultural technologies to scale: experiences from a vegetable technology dissemination initiative in Tanzania

One of the widely suggested approaches to meet the increasing food demand of a substantially growing world population is sustainable intensification. We present a unique agricultural research and scaling programme in Tanzania, focusing on the key elements necessary for results related to: gender analysis; private sector engagement; social capital; improvement and adaptation; and programme performance monitoring and evaluation. Since 2014, more than 6000 farmers have benefited from either the adaptive research or the scaling component of the programme. Preliminary impact analysis results from six pilot locations indicate that programme participants realized significantly higher yields compared to non-participants. In addition to productivity improvements, introducing resistant and drought-tolerant elite vegetable varieties improved the resilience of the existing farming systems. Finally, considering the needs of both male and female participants had a positive impact on technology adoption rates and reach.     

The rise and fall of public sector plant breeding in the United Kingdom: a causal chain model of basic and applied research and diffusion

This paper examines the barley and wheat breeding programmes of the Plant Breeding Institute (PBI), which was the most successful public plant breeding institute in the UK, until privatization in 1987. The PBI's shares in barley and wheat seed sales are explained, showing that the success with barley was largely a matter of serendipity, whereas the wheat programme followed a more normal pattern. For wheat, the causal chain, or recursive, model decomposes the well-documented link between research expenditures and increases in agricultural productivity into three stages. These are the effects of R&D expenditures on basic research output, measured by publications, the effect of publications and applied R&D expenditures on trial plot yields, and the diffusion of the trial plot technologies, which raises yields on farms. Applying the model to the FBI's wheat varieties allows estimation of the lag structures. In contrast to the results for aggregate agricultural research, for a single plant breeding programme alone there is a considerable lead time before there is any response, followed by a lag distribution only a few years long. The returns to the R&D investments are calculated from the causal chain model, from single equation estimates and by evaluating the yield advantage of the PBI varieties. All three approaches give consistent results, which show that the returns to barley and wheat alone were sufficient to support the entire PBI budget and still give rates of return to applied research of between 14 and 25%. The return to the basic science expenditures of the John Innes Institute has a lower bound of 17%, but must have been even higher than for the PBI if the other Institutes were taken into account. The paper concludes by commenting on the effects of the privatization of the PBI.     

The Red de Semillas Libres: Contesting Biohegemony in Colombia

The Red de Semillas Libres (Network of Free Seeds) in Colombia contests the expansion of, and dominant narratives on, agricultural biotechnology and intellectual property rights (IPRs) protections on seed – or what has been called ‘biohegemony’. We argue that despite its challenges, the Network contests ‘biohegemony’ through lawsuits, supporting ‘seed sovereignty’, and reframing the often taken‐for‐granted discourse on local seed varieties as raw material and a resource to be ‘discovered’, ‘invented’ and commodified by industry and Western‐based technoscience. Based on ethnographic research, we extend the concept of biohegemony to include struggle and contestation by examining how the Network pursues seed sovereignty.     

A household hedonic model of rice traits: economic values from farmers in West Africa

New crop varieties often have been promoted in developing countries based upon superior yield vis-a-vis locally available varieties. This research presents a hedonic price model for upland rice by drawing upon the input characteristics and consumer good characteristics model literature. Model specification tests determine that a combination of production and consumption characteristics best explains the willingness to pay for new upland rice varieties. The household model specification determined that five traits explain the willingness to pay for new rice varieties: plant cycle length, plant height, grain colour, elongation/ swelling and tenderness. Yield was not a significant explanatory variable of the willingness to pay for seed. The implications of this model are two-fold. First, varietal development and promotion must include post-harvest characteristics in addition to production traits when determining which varieties to promote for official release. Secondly, non-yield production characteristics such as plant height and cycle length are significant factors in producer's assessments of the value of a new variety. Overall, this paper provides an alternative explanation for limited adoption of modern upland rice varieties in West Africa: varietal evaluation programs have focused too narrowly on yield evaluation and have not promoted varieties with superior non-yield characteristics than locally available varieties.     

Efficiency of research investments in the presence of international spillovers: wheat research in developing countries⋆

Expenditures on agricultural research in the public sector, including the International Agricultural Research Centers (IARCs) have stagnated and in some cases, declined sharply in recent years. This has focused attention on issues of efficiency of agricultural research systems, especially the number, size, scope, type, and locations of their programs. This paper examines the issue of research efficiency through a case study of wheat improvement research in developing countries. The basic premise of this study is that the optimal level of research investment should be determined in a global model that incorporates direct research spill‐ins. An analytical framework is developed to determine the threshold levels of crop production in a country (or a region within a country) needed to justify crop improvement research programs of different sizes in the presence of spill‐ins from abroad. Spill‐in coefficients are estimated from yield performance of varieties of different origins grown across a range of environments. The model is then applied to analyze the efficiency of current investments in 69 wheat improvement research programs in 35 developing countries. A major conclusion of the paper is that given the magnitude of potential spill‐ins from the international research system, many wheat research programs could significantly increase the efficiency of resource use by reducing the size of their wheat research programs and focusing on the screening of varieties developed elsewhere. ©2000 Elsevier Science B.V. All rights reserved.     

Will the TRIPS Agreement Foster Appropriate Biotechnologies for Developing Countries?

While almost all of the investment in agricultural biotechnology to date has been in temperate crops suitable for developed countries, developing countries are the greatest potential beneficiaries of this major technological advance. To realise this potential requires investment in crops appropriate to climatic and agronomic conditions in developing countries. Protection of intellectual property rights is a necessary condition for the private sector to invest in appropriate biotechnologies. This paper develops a game theoretic model of a bioscience firm that adapts a new technology to a range of agronomic conditions in response to the enforcement of intellectual property rights in a developed and a developing country. Over a range of potential penalties, low levels of enforcement by the developing country remain endemic despite the desire to have the bioscience firm adapt the biotechnology to its local conditions. In particular, the trade penalties contained in the Agreement on Trade‐Related Aspects of Intellectual Property Rights are likely to be ineffective. The developing country might increase enforcement if the developed country was more aggressive in liberalising agriculture trade because there would be greater symmetry in the benefits of the technology.     

Reaping What We Sow: Emerging Issues and Policy Implications of Agricultural Biotechnology

This essay assesses the U.S. government's role in managing rapid biotechnological change in agriculture. Many scientists hail recent agricultural biotechnology developments as steps toward solving the health, nutrition, and environmental problems that have plagued the world for decades. At the same time, some fear these biotechnological advances will leave a legacy of environmental threats, health problems, and ethical dilemmas for future generations. The impacts of these technologies on economies and the environment are unpredictable and government's role in regulating GM (genetically modified) technologies will need to be different than its functions in traditional agricultural policy. In this article, we consider current federal regulation of GM products, consumers' apprehensions about GM food, possible market failures due to agricultural biotechnology, and the policy significance of scientific uncertainty. We then suggest policy approaches that can address concerns about biotechnology and ensure that the potentially widespread public benefits from GM crop production are not ignored.     

Biotechnology Piracy: Rethinking the International Protection of Intellectual Property

Access to international markets will be an important factor in investment decisions for firms engaging in the research and development of agricultural biotechnology. International market access can be restricted in two ways: the imposition of trade barriers and intellectual property piracy. This paper develops a model of the enforcement game between a developing country=s government and a foreign biotechnology firm to examine the efficacy of the World Trade Organization=s Agreement on Trade Related Aspects of Intellectual Property Rights (TRIPS) agreement for the protection of intellectual property in agricultural biotechnology. The conclusion is that the TRIPS is unlikely to provide sufficient protection and, thus, will lead to suboptimal levels of investment.
L'accès aux marchés étrangers jouera un rôle capital dans les décisions des entreprises qui souhaitent investir dans la recherche et le développement en biotechnologie agricole. Deux éléments peuvent entraver l'accès au marché international: les barrières commerciales et le piratage de la propriété intellectuelle. Dans cet article, les auteurs modélisent les interactions entre le gouvernement d'un pays en développement et une entreprise de biotechnologie étrangère en vue d'établir dans quelle mesure l'Accord sur les ADPIC de l'OMC protège la propriété intellectuelle dans le secteur de la biotechnologie agricole. De cet exercice, ils concluent que la protection assurée par l'Accord sur les ADPIC est insuffisante, donc qu'on assistera à des investissements inférieurs aux investissements optimaux.     

The Optimal Timing of Evaluation of Genebank Accessions and the Effects of Biotechnology

The lack of ex ante evaluation of germplasm in genebanks has been the single most prevalent and long-standing complaint of plant breeders about the management of genebanks. Advances in biotechnology offer the possibility of faster, cheaper and more efficient evaluation methodologies. Will these new technologies favor ex post evaluation, as some expect, or will it lead to more ex ante evaluation? Will it also lead to earlier development of varieties with disease resistance traits in anticipation of actual infestations? Will the prospect of further advances in biotechnology favor delay of evaluation and development? This paper addresses these questions in the case of evaluation of germplasm for resistance to a disease.     

Valuing Varieties with Imperfect Output Quality Measurement

Markets for agricultural products may be inefficient when signals do not adequately reflect product characteristics important to market participants. Preferences can be explicitly reflected in price premiums for measurable characteristics using hedonic methods. However, when product quality information is costly to obtain, the problem is compounded. Bundling of quality traits by variety can serve to signal product quality. A procedure is developed to derive the value of different varieties in meeting buyer demands. An application to the hard red spring market wheat illustrates the use of a procedure to distinguish among varieties and provides empirical support for the existence of Akerlof's lemon market in the release of wheat varieties.     

The value of plant genetic diversity to resource-poor farmers in Nepal and Vietnam

Genetic resources for food and agriculture are the biological basis of world food and nutrition security; and they directly or indirectly support the livelihoods of over 2.5 billion people. Genetic diversity gives a species or a population the ability to adapt to changing environments. For resource-poor farmers, adaptive animal breeds, crop varieties and cultivars adapted to particular micro-niches, stresses or uses are the main resources available to maintain or increase production and provide a secure livelihood. The economic value of genetic diversity for productivity and yield traits is discussed in the literature. However, it is difficult to value many other aspects of agricultural biodiversity as these have both direct and indirect values in terms of qualitative traits such as food, nutrition and environmental uses that include adaptation to low input conditions, co-adaptive complexes, yield stability and the consequent reduction of risk, specific niche adaptation, and in meeting socio-cultural needs. Together, the direct and indirect values of genetic resources for resource-poor farmers are expressed in a range of options in the form of the crop varieties and species they use for managing changing environments.

The value of genetic diversity to resource-poor farmers is seldom captured by markets or addressed by the international research agenda. This paper presents lessons learned from our work over 5–10 years in the Asia and Pacific Ocean (APO) region on participatory crop improvement, home gardens and on-farm management of agricultural biodiversity. The lessons illustrate how farmers adapt genetic resources to suit local environmental conditions. The paper focuses on the value of genetic diversity of selected crop species to meet people's food and other needs. Genetic diversity valued by resource-poor farmers is often maintained, selected and exchanged by local social seed networks. Identification of such genetic resources and their custodians is important if international agricultural research is to contribute to the reduction of poverty. The paper highlights some good practices from case studies that illustrate how such genetic resources could be exploited by informal research and development strategies or participatory plant breeding or for marketing value-added products.     

Breeding for Africa's new smallholder maize paradigm

This paper describes the evolution of a newly emerging smallholder maize paradigm in southern Africa beginning in 1996. This new paradigm involves the breeding, extension, and adoption of a new generation of open-pollinated ‘flinty’ maize varieties that specifically address the needs of southern African smallholder farmers for seed varieties that can be replanted (recycled) and that resist drought and low fertility problems increasingly common in southern Africa. The described mechanism is the extension and breeding work of the Southern Africa Drought and Low Fertility programme (SADLF) of the Centro Internationale por la Mejoridad de Maize y Trigo (CIMMYT). This paper explains the devolution of southern African maize production in the past two decades from centralized large-scale producers to smallholder farms, signalling a shift in research and plant breeding needs. The research/extension approach described here had profound consequences beyond the technical benefits of screening maize varieties for tolerance to stress; it empowered small-scale farmers to become informed consumers of agricultural technology. The transformation of the smallholder from a passive consumer to one actively seeking the best opportunity and seed to produce food, create economic opportunities and address local social conditions is an important development in the history and sustainability of maize production in southern Africa, and one consistent with modern African history of economic liberalization in the global food economy.     

Reflexive Interdisciplinary Research: The Making of a Research Programme on the Rural Economy and Land Use

This paper provides an account of the origins and formation of the UK Research Councils’ Rural Economy and Land Use (RELU) programme and its approach to promoting interdisciplinary working between social and natural scientists. The programme is set in the context of broader developments in science policy, including a policy discourse centred upon sustainable development and the knowledge economy and associated demands for greater accountability in science. Interdisciplinarity promises research that will be more relevant and responsive to public needs and concerns. In describing the provenance of the RELU programme, therefore, the paper seeks to lay out the different stages in its initiation and design to show how, to varying degrees, these were open to external scrutiny and influence. The process of developing the programme illustrates that it is not straightforward to make research agendas and funding more transparent and accountable. It also provides insights into the challenges that interdisciplinarity and accountability present to established science institutions.     

MODELS OF RESOURCE ALLOCATION IN PUBLIC AGRICULTURAL RESEARCH: A SURVEY

The identification of research priorities in public agricultural research has been the focus of investigation for a broad range of analytical and empirical studies. Pressure on budgets has meant that efficient resource allocation has become increasingly important to guarantee the continued productivity of agricultural research. This paper provides an overview of the various approaches that have been used in these studies. Generalisations are drawn from the findings of this research programme.     

Infringement of Intellectual Property Rights: Causes and Consequences

A game-theoretic model of heterogeneous producers is developed to examine the economic causes and consequences of intellectual property right (IPR) infringement in the context of a small open developing economy. Analytical results show that complete deterrence of IPR infringement is not always economically optimal. IPR infringement affects economic welfare and has important ramifications for the pricing and adoption of the new technology (biotechnology). The quantitative nature of results depends on the labeling regime. If the TRIPs agreement follows the custom of retaliatory sanctions under GATT, IPR enforcement will remain imperfect and innovators' ability to obtain value for their biotech traits will be limited.