Farm Profits from Observed Yields of Bt and Non-Bt Cotton, with and without Spray Application, in theMississippi Delta

摘要

Since 1996, the introduction of Bt cotton has demonstrated to have increased the profitability of farm operations in the Mississippi Delta. Using state budgeted costs, NASS prices and published yield data, net per acre returns for conventional (non-Bt) and Bt cotton were calculated for the Mississippi Delta. For the period 1997-2000, a comparative study of net per acre returns between non-Bt and Bt cotton varieties and total returns for an average-sized Mississippi Delta cotton farm that plants bothBt and non-Bt cotton was conducted. From the results, we find that mean per acre profits were higher with Bt than with non-Bt cotton. More importantly, those profits were higher for non-Bt cotton when an insecticide/pesticide spray was applied as compared to when it was not. When we consider relative risk, mean farm returns are found to be not only higher but also more stable (less risky) when spray was applied. Observed farm yields are found to be a driving force in this study in choosing Bt over non-Bt cotton and a spray application over non-application.