Journal of Agricultural and Resource Economics
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While most Corn Belt farmers consider planting Bt corn to control European corn borer, southwestern Kansas farmers must also take into account an array of other insect pests, including corn rootworm, spider mites, and southwestern corn borer. This research uses a decision analysis framework to estimate the expected economic value of Bt corn in southwest Kansas. Mean per acre Bt values ranged from $12.49 to $34.60, well above the technology fee assumed to be $14 per unit, or $5.25 per acre at a seeding rate of 30,000 seeds per acre. The minimum value over all scenarios was $8.69 per acre. Using Monte Carlo simulation, it was shown that European and southwestern corn borer infestation probabilities, expected corn price, and expected pest-free yields are important determinants of the value of Bt corn.
Two approaches have been taken to the modeling of poultry demand in U.S. meat demand studies. One has been to ignore turkey, and estimate demands for beef, pork, and chicken. The second has been to include turkey by combining it with chicken, and estimating demands for beef, pork, and poultry. The validity of these two approaches is examined using quarterly U.S. time-series data from 1980-96. The results indicate that either approach to the modeling of poultry demand is appropriate.
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