Transcript Slide 1

Economic model of
transgenic crop adoption
Ian McFarlane, Julian Park, Graziano Ceddia
Background:
Previous research in this area
The AMIGA* Project
University of Reading’s involvement
Economic model
*Assessing and Monitoring Impacts of Genetically modified plants on
Agro-ecosystems
Model features:
• Dynamic 5-year simulation
• EU divided into 5 Regions
• Crops selected from menu of crops for given Region
• Potential Yield of crop recalculated each month as a
function of:
–
–
–
–
Weed Pressure
Pest Pressure Risk (stochastic)
Field Management
(future option: Climate Change effects)
Regions:
Regions:
[These regions
are defined in
the AMIGA work
program]
EU Regions:
• For the AMIGA work packages, four regions were selected
based on the Natura 2000* approach (Boreal, Atlantic,
Continental, Mediterranean)
• The fifth region (Balkans), includes two countries that
belong to four Natura different zones.
*Natura 2000 is an EU wide network of nature protection
areas established under the 1992 Habitats Directive.
Crops by Region:
‘000 ha
year: 2008
[Eurostat]
Model data:
• Crop hectares (by Member State) from Eurostat
• Regional features (e.g. incidence of pests)
• Economic variables (includes GM seed price policies)
• Farm management costs
- Data input via set of spreadsheets
- Calculations performed in VBA (Visual Basic for Excel App)
- Data output into new sheets in new workbooks
Rotations
year:
region
rotation
1
1
feedmaize
feedmaize
rape
springwheat
feedmaize
2
soya
springwheat
feedmaize
springwheat
feedmaize
3
feedmaize
sugarbeet
feedmaize
feedmaize
rape
4
springwheat
rape
feedmaize
springwheat
springwheat
5
soya
feedmaize
springwheat
sugarbeet
feedmaize
1
springwheat
feedmaize
rape
springwheat
feedmaize
2
rape
springwheat
feedmaize
springwheat
feedmaize
3
feedmaize
springwheat
feedmaize
rape
springwheat
4
springwheat
feedmaize
springwheat
feedmaize
rape
5
feedmaize
rape
springwheat
feedmaize
springwheat
1
winterwheat
potato
feedmaize
rape
springwheat
2
feedmaize
springwheat
sugarbeet
springwheat
sugarbeet
3
potato
springwheat
potato
feedmaize
springwheat
4
springwheat
feedmaize
rape
springwheat
feedmaize
5
feedmaize
springwheat
soya
feedmaize
springwheat
1
winterwheat
rape
winterwheat
rape
winterwheat
2
springwheat
potato
springwheat
potato
springwheat
3
winterwheat
sugarbeet
springwheat
winterwheat
potato
4
springwheat
potato
sugarbeet
springwheat
springwheat
5
winterwheat
springwheat
winterwheat
sugarbeet
springwheat
1
springwheat
sugarbeet
other
springwheat
springwheat
2
other
springwheat
springwheat
sugarbeet
springwheat
3
springwheat
other
springwheat
other
springwheat
4
springwheat
springwheat
potato
springwheat
other
5
potato
other
springwheat
springwheat
potato
2
3
4
5
1
2
3
4
5
In proportion
to hectares
cultivated by
region in 2009
[Eurostat]
Model schematic
Model details:
Weed Pressure
Function of :
- previous cultivar on this plot
- Herbicide application(s)
Model details:
Pest Pressure
Function of:
- Previous application(s) of pesticide
- Random occurrence of pest pressure
- Current pest management policy
Model details:
Field Management
Function of:
- Tillage policy
- Fertiliser application(s)
- Previous cultivar
Economic Model
Loop in one month steps for each:
year > region > plot > crop
Model interface:
VBA User Form for initialisation
Economic variables
- Seed cost
- Crop value
- Pest control cost(s)
- Weed control cost(s)
- Fertiliser cost
- Labour cost
- Coexistence cost
Result format:
runID:
xx-mmddyy
GM
€'000
'000
'000
'000
€'000
'000
'000
gross
ha
winterwheat
springwheat
feedmaize
soya
rape
cotton
potato
sugarbeet
rice
other
HT maize
IR maize
HTIR maize
HT soya
HT rape
IR cotton
GM potato
seed
control
sales
margin
'000
gross
ha
seed
control
sales
margin
Key Challenges
Yield data for GM crops in the EU
Estimating weed and pest pressures
Price estimates for GM products in the EU
Assumptions about typical rotations
Crop (event) availability in the future
[Include findings from sister groups in the project]
References:
Brookes G. (2012) European arable crop profit margins GBC Ltd
Eurostat: Crops products [apro_cpp_crop]
http://appsso.eurostat.ec.europa.eu/nui/show.do?dataset=apro_cpp_crop
Farm Accountancy Data Network (FADN)
http://circa.europa.eu/Public/irc/agri/rica/
library?l=/micro-economic_analyses/standard_results
John Nix Farm Management Pocketbook (42nd edn)
http://www.thepocketbook.biz/
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Gomez-Barbero M., et al (2008) Adoption and performance of the first GM crop introduced in EU
agriculture: Bt maize in Spain. JRC-IPTS Report 22778
Park J., et al (2011) The impact of the EU regulatory constraint of transgenic crops on farm
income. New Biotechnology, 28(4), 396-406