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Impacts of the Adoption of Genetically Engineered Crops on Farm Financial Performance

Abstract The rapid adoption of genetically engineered (GE) crops by U.S. farmers suggests that these technologies have been perceived to improve farm financial performance. This study develops and applies an econometric model to data from corn and soybean producers in order to evaluate the financial impacts of the adoption of GE crops. Results indicate that the adoption of GE crops has had a limited impact on financial performance that varies by crop, type of technology, type of farm, and region of the nation. Factors other than the financial impacts appear to be important reasons for the rapid adoption of GE crops.