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2016 | OriginalPaper | Buchkapitel

The Economic Impacts of Regulatory Delays: The Case of HT Soybeans

verfasst von : Nicholas Kalaitzandonakes, Kenneth Zahringer, John Kruse

Erschienen in: The Coexistence of Genetically Modified, Organic and Conventional Foods

Verlag: Springer New York

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Abstract

Crops developed through biotechnology must undergo regulatory approval to ensure their environmental, food and feed safety before they are commercially introduced in the marketplace. This regulatory process necessarily lengthens the time required to bring such new crops to market. Insofar as this delay is necessary to ensure their safety it is regarded as worthwhile. Efficiency is crucial, though; there are many possible ways that the regulatory review process can be structured.

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Fußnoten
1
The ability to use a more effective, broad spectrum herbicide has lessened the need for weed control through cultivation, so no-till practices has become more prevalent in many leading soybean areas. This also makes for a shorter growing season; some South American farmers have been able to double crop soybeans after wheat, leading to increases in annual farm income of over $200/ha (Brookes and Barfoot 2014).
 
2
Consumer surplus is a measure of economic benefit enjoyed by consumers when they purchase goods at market prices lower than the maximum they would have been willing to pay. When innovation leads to lower market prices, therefore, the resultant change in consumer surplus indicates the economic benefits from the innovation that accrue to the consumers. Producer surplus, on the other hand, measures the benefit to producers when they sell goods at prices higher than the minimum they would have been willing to accept.
 
3
Similar incremental costs have been estimated in “Economic Impact of Weed Resistance in Argentina”. Ing. Sebastián Senesi, Food and Agribusiness Program.UBA. FAUBA where the total incremental cost of weed control has been calculated at $1.3 billion (REM 2014).
 
4
Dow AgroSciences has received cultivation approval for its Enlist tm soybeans, resistant to glufosinate and 2,4-D, and also Enlist E3 tm soybeans, developed in cooperation with MS Technologies, resistant to glyphosate, glufosinate, and 2,4-D. Bayer CropScience, is similarly in the process of commercializing its Balance tm GT soybeans, resistant to glyphosate and isoxaflutole. Monsanto has gained North American approvals for its Genuity RR2 Xtend tm trait, resistant to glyphosate and dicamba. Finally, Bayer CropScience and Syngenta is releasing a soybean variety resistant to mesotrione and glufosinate (ISAAA 2015).
 
5
A new soybean variety from Bayer CropScience and Syngenta, resistant to mesotrione, glufosinate, and isoxaflutole, is currently undergoing regulatory review in the US, Canada, and the EU. These two firms are also developing a cultivar resistant to glyphosate, glufosinate, and HPPD (4-Hydroxyphenyl Pyruvate Dioxygenase) inhibitors. BASF is developing an imidazoline tolerant form of its Cultivance soybean in cooperation with Brazilian researchers (Context Network 2014).
 
6
Own calculations, based on the most recent receipt date of the petition and the final decision date. Many petitions were initially submitted earlier and revised multiple times. Calculations using the initial petition date would result in even longer average pendency.
 
7
The adoption level of 80 % as well as the cost savings are generally considered conservative and are maintained as such by design. For instance, adoption of herbicide tolerant soybeans in most countries has exceeded 95 % of hectarage.
 
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Metadaten
Titel
The Economic Impacts of Regulatory Delays: The Case of HT Soybeans
verfasst von
Nicholas Kalaitzandonakes
Kenneth Zahringer
John Kruse
Copyright-Jahr
2016
Verlag
Springer New York
DOI
https://doi.org/10.1007/978-1-4939-3727-1_19

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