The Economic Impact of Bt Corn Resulting from Mycotoxin Reduction

Abstract

The insecticidal proteins in genetically modified hybrid Bt corn (Zea mays spp.) reduce insect damage, which in turn can reduce infection of the grain by mycotoxigenic fungi. Lower levels of Fusarium mycotoxins, fumonisin, and deoxynivalenol in Bt corn could have significant market and health impacts, both in the United States and around the world. These impacts are foregone losses through market rejection, human health losses, and animal health losses. We estimate that at current planting levels, Bt corn saves farmers in the United States about $17 million annually through reduced fumonisin and deoxynivalenol damage alone. Though not extensively grown in developing countries, the benefits there in mycotoxin reduction could be even more significant, particularly in regions where corn is a staple in the human diet.

Keywords: :

• Bt corn
• Mycotoxin reduction
• Economic analysis

Notes

^aThese epidemiological studies have been criticized for not controlling for risk factors such as alcohol and cigarette consumption.

^bInsect damage is not well correlated with aflatoxin concentrations, as other factors predispose corn to accumulation of this mycotoxin. We include aflatoxin in this paper, not because it can be reduced by Bt corn, but so the reason for its omission in benefits calculations will be clear.

^cA new variety of Bt corn has recently been registered with the EPA (February 2003) that protects against the corn rootworm. This type of Bt corn is not included in this study.

^dThe total corn planting in Texas, Alabama, Florida, Georgia, Louisiana, and Mississippi makes up about 5% of total U.S. corn planting (USDA, 2003a).

^e http://www.lumina.com.

^fThe values of the 2.5th and 97.5th percentile of the 1000 iterations approximate the 95% confidence interval.

^gBased on corn fumonisin concentrations in the U.S. from 1990 to 2000.