Marnus Gouse
Department of Agricultural Economics, Extension and Rural Development, University of Pretoria
Carl Pray
Department of Agricultural, Food, and Resource Economics, Rutgers University
David Schimmelpfennig
USDA Economic Research Service

Technology adoption can create income benefits for large and small-scale producers, input suppliers and consumers in developing countries. The circumstances under which this income creation can take place are shown to depend on a wide range of factors applicable across dualistic agricultural practices in South Africa. Whether for large commercial farms or small-scale agriculture, four factors influence the creation of surplus. World prices, subsidies in developed countries, domestic market structure, and the presence of substitute import markets each play a role in the distribution of rents from Bt cotton, an appropriate technology for South African farmers.

Key words: Genetically modified, peasant farmers, welfare benefits