GMO Bt Corn Costs Farmers, New Economic Analysis Finds Surprising
Variability in Bt and Conventional Corn Yields Price -- A Poor Indicator
of Performance Minneapolis -

Over the last six years, farmers who planted genetically modified Bt
corn have lost $92 million or an average of about $1.31 per acre,
according to the first farm-level economic analysis of the product.
"When Does It Pay to Plant Bt Corn: Farm-Level Economic Impacts of Bt
Corn, 1996-2001," is by Dr.  Charles Benbrook of Benbrook Consulting
Services.  Dr.  Benbrook previously served as the Executive Director of
the National Academy of Science Board of Agriculture.

The report found that from 1996-2001, American farmers paid at least
$659 million in price premiums to plant Bt corn, while boosting their
harvest by only 276 million bushels - worth some $567 million in
economic gain.  The bottom line for farmers is a net loss of $92 million
- about $1.31 per acre.  "On average, yield increases due to Bt corn
have not increased farm income enough to cover the higher costs of Bt
seed," says Dr.  Benbrook.  "The jump in per acre seed expenditures with
Bt corn is by far the biggest in history linked to a single new trait."

Bt corn is genetically engineered to express the protein-based toxins of
Bt in plant tissues for the control of two Lepidopteran insects, the
European Corn Borer (ECB) and the Southwestern Corn Borer (SWCB).  The
economic value of using Bt corn depends largely on whether infestation
levels of ECB/SWCB impact yields.

"We estimate that the U.S.  has foregone about 350 million bushels of
corn export sales to the European Union since 1996/97 largely because
the EU doesn't want GMOs," says Dan McGuire, of the American Corn
Growers Association (ACGA).  "The findings of this report are part of a
triple negative for farmersÖlost corn exports, lower corn prices and
less net profit from GMO (Bt) corn, which is why the ACGA cautions
farmers on their seed choices."

"At this point, in most cases Bt corn doesn't pay for farmers," says
Kristin Dawkins, of the Institute for Agriculture and Trade Policy.  "We
hope this report helps farmers get better numbers about the costs
associated with GMO crops so they can make informed planting decisions."
This report is part of series being published by the Institute for
Agriculture and Trade Policy and Genetically Engineered Food Alert on
economic and legal issues related to genetically engineered crops.  A
four page summary of the report as well as the full 33 page report can
be downloaded at:
http://www.iatp..org
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