Kenrett Y. Jefferson-Moore
Department of Agribusiness, Applied Economics & Agriscience Education, North Carolina A&T State University.
Agricultural Economics and Rural Sociology, Auburn University.
The driving force behind the growth of the agricultural biotechnology industry is the potential to increase efficiency in the production of commodities and to provide benefits to consumers and producers as well as profits for industry. Value-enhanced genetically modified crops have the potential to provide new momentum to the industry. Using the US high-oil corn (HOC) industry as a case study, welfare measures indicate that those benefiting from HOC are HOC seed suppliers and conventional seed suppliers. Farmer gains are only attributed to larger premiums at the elevator level without technology fees and monopoly power.
Key words: Equilibrium displacement modeling (EDM), high-oil corn, monopoly power, value-enhanced crops, welfare analysis.