Herbicide-Resistant Technology Price Effects on the Plant Density Decision for Ultra-Narrow-Row Cotton

Abstract

Farmers are concerned about the high cost of planting herbicide-resistant cotton with the high plant densities recommended for ultra-narrow-row cotton. This study evaluated the effects on net revenues of four herbicide-resistant technology fee policies used since 1996 by Monsanto, the technology license holder. Results indicate that changes in the technology fee policy by Monsanto have raised the cost of planting herbicide-resistant cotton. As a consequence, farmers may have an incentive to switch from ultra-narrow-row cotton to wide-row cotton and to use a lower plant density when the technology fee is tied to the seeding rate.

Keywords

• profit
• seed cost
• technology fee
• transgenic cotton