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Journal of Agricultural and Resource Economics >
Volume 32, Number 01, April 2007 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/8593
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| Title: | Grower Response to Contracts and Risk in Genetically Modified (GM) Crops |
| Authors: | Wilson, William W.
Dahl, Bruce L.
Maxwell, Brett J. |
| Keywords: | adoption risk
GM crops
incentives contracting
stochastic dominance |
| Issue Date: | 2007-04 |
| Abstract: | Contract strategies can resolve some of the challenges that exist for property rights conformance of genetically modified (GM) crops. The purpose of this research is to determine how contract terms impact adoption decisions related to GM grain production and marketing. A simulation model was developed for prospective GM introduction in hard red spring (HRS) wheat, and distributions of net returns for growers were analyzed using stochastic dominance and stochastic efficiency. Results illustrate that contracts can be designed to induce desired behavior. Technology fees, probabilities of detection, and the level of non-GM premiums were the most notable factors influencing adoption decisions. In addition, point-of-delivery pricing and premiums for non-GM production impact adoption decisions. |
| URI: | http://purl.umn.edu/8593 |
| Institution/Association: | Journal of Agricultural and Resource Economics>Volume 32, Number 01, April 2007 |
| Total Pages: | 19 |
| Language: | English |
| From Page: | 135 |
| To Page: | 153 |
| Collections: | Volume 32, Number 01, April 2007
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| 32010135.pdf | 7017Kb | PDF | View/Open |
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