Impacts on economics sector of a country

        Many conflicting news stories and reports have appeared concerning the economic benefits realized by farmers adopting the major transgenic crops. It is true that farmers pay a premium for genetically engineered (GE) corn, soybean, and cotton varieties, and these varieties do not have increased yield potential per se over the best available conventional varieties. The potential economic benefits of the major GE crops currently available could result from enhanced protection from yield loss due to pests, increased efficiency in the production system, or both. Actual benefits appear to vary with a number of factors including the particular crop grown, the transgenic trait in the crop (herbicide tolerance or Bt-derived insect resistance), the region where the crops are grown, the type of farm operation adopting the technology, production factors (particularly actual pest pressures) that can vary from year to year and from farm to farm, and the current premium paid for the transgenic seed.

       Different methods used to analyze or summarize the limited data available for these diverse situations can lead to very different interpretations. The Economic Research Service of the USDA has issued reports attempting to take these factors into consideration, but their analyses do not yet include data for the most recent production years. While particular cases may vary, some of the general conclusions of the studies are:
• GE herbicide-tolerant cotton and GE herbicide-tolerant corn both have had positive economic impacts on farms overall.
• GE herbicide-tolerant soybeans have not had a positive economic impact overall, but adoption was "quite" profitable for some farms.
• Bt cotton had a positive economic impact on farms overall.
• Bt corn had a negative economic impact on farms overall.

        While these generalizations may provide a reasonably unbiased "simple answer" to the question, please refer to the original reports listed below for a discussion of the factors influencing the calculated impacts, and for an analysis of how these findings relate to the adoption of GE crops by U.S. farmers. For example, even though the analysis showed GE soybeans increased net returns only for some farmers, but not GE soybean growers overall, GE soybean plantings have increased each year from their introduction to an estimated 75% of the U.S. crop in 2002. It has been suggested that other benefits recognized by farmers that are more difficult to measure, such as simplified management options, may be important in the adoption of GE-herbicide tolerant soybeans.