Michele C. Marra, Nicholas E. Piggott, and Barry K. Goodwin
North Carolina State University
This study provides an estimate of the anticipated value of SmartStax™ corn hybrids in the years after full commercialization. SmartStax™ hybrids have an eight-trait stack of aboveground and below-ground insect-resistance traits and tolerance to two broad spectrum herbicides. Survey data, expert opinion, and public data sources were used to estimate the value of SmartStax™ hybrids to growers. We consider the effects of varying spatial and temporal pest pressure, differing target insects, the current hybrid mix, the anticipated actions of competing seed companies, and geographical location on Smart- Stax™ adoption and value. We estimate the total value of SmartStax™ hybrids to growers, including the non-pecuniary value, to be $760.98 million per year in the Corn Belt. We then discuss the role that SmartStax™ is expected to play in enhancing crop insurance programs.
Key words: biotechnology, crop insurance, non-pecuniary, partial budget, SmartStax.