No abstract

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.

Sustainable agricultural intensification is an urgent challenge for Sub‐Saharan Africa. One potential solution is to rely on local farmers' knowledge for improved management of diverse on‐farm resources and integration among various farm enterprises. In this article, we analyze the farm‐level impact of one recent example, namely the integrated aquaculture–agriculture (IAA) technologies that have been developed and disseminated in a participatory manner in Malawi. Based on a 2004 survey of 315 respondents (166 adopters and 149 nonadopters), we test the hypothesis that adoption of IAA is associated with improved farm productivity and more efficient use of resources. Estimating a technical inefficiency function shows that IAA farms were significantly more efficient compared to nonadopters. IAA farms also had higher total factor productivity, higher farm income per hectare, and higher returns to family labor.

The spread of Fusarium oxysporum f. sp. cubense tropical race 4 (Foc TR4), causal agent of Fusarium wilt of banana (FWB), has been projected to reach 17% of the global banana-growing area by 2040 equaling 36 million tons of production worth over US$10 billion. This potential loss has fueled (inter)national discussions about the best responses to protect production and small-scale growers’ livelihoods. As part of a multi-crop ex ante assessment of returns on research investments conducted by the CGIAR Research Program on Roots, Tubers, and Bananas (RTB) from 2012 to 2016, four FWB research options were assessed: (i) improved exclusion, surveillance, eradication, and containment (ESEC) measures to reduce Foc TR4 spread, (ii) integrated crop and disease management (ICDM) to facilitate production of partially FWB resistant cultivars on Foc-infested soils, (iii) conventional breeding of FWB-resistant cultivars (CBRC), and (iv) genetically modified (GM) FWB-resistant cultivars (GMRC). Building on a risk index (Foc scale) predicting the initial occurrence and internal spread of Foc TR4 in 29 countries, an economic surplus (ES) model, cost-benefit analysis, and poverty impact simulations were used to assess impact under two adoption scenarios. All options yield positive net present values (NPVs) and internal rates of return (IRRs) above the standard 10% rate. For the conservative scenario with 50% reduced adoption, IRRs were still 30% for ICDM, 20% for CBRC, and 28% for GMRC. ESEC has IRRs between 11 and 14%, due to higher costs of capacity strengthening, on-going surveillance, farmer awareness campaigns, and implementation of farm biosecurity practices, which could be effective for other diseases and benefit multiple crops. The research investments would reach between 2.7 million (GMRC) and 14 million (ESEC) small-scale beneficiaries across Asia/Pacific, Sub-Saharan Africa, and Latin America/Caribbean. The options varied in their potential to reduce poverty, with the largest poverty reduction resulting from CBRC with 850,000 and ESEC with 807,000 persons lifted out of poverty (higher adoption scenario). In the discussion, we address the data needs for more fine-grained calculations to better guide research investment decisions. Our results show the potential of public investments in concerted research addressing the spread of Foc TR4 to yield high returns and substantially slow down disease spread.

Productivity assessment of damage control inputs (such as pesticides) is complicated because their effect depends on the exposure to damage agents (such as pests). We discuss some open specification and estimation issues. The contribution is threefold. First, we elaborate the separability conditions for the damage control function and production function. Second, we employ a two-stage semiparametric technique to combine attractive features of both nonparametric and parametric approaches. Third, we model the interaction between pest exposure and damage control inputs by using slope dummies. An application to productivity analysis of small scale Bt cotton production in China illustrates the approach. Copyright 2006, Oxford University Press.