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

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 lic...

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Bibliographic Details
Main Authors: James A. Larson, Roland K. Roberts, C. Owen Gwathmey
Format: Article
Language:English
Published: Western Agricultural Economics Association 2007-08-01
Series:Journal of Agricultural and Resource Economics
Subjects:
Online Access:https://ageconsearch.umn.edu/record/8640
Description
Summary: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.
ISSN:1068-5502
2327-8285