Everett Griner talks about GMO production being a natural step in today’s Agri View.
From: GMO Answers.com
What is the difference in the cost of production gmo vs. non gmo?
Will Rogers is credited with the quote: “The farmer has to be an optimist or he wouldn’t still be a farmer.” Optimistically, each winter we review our harvest data comparing our crop yield by variety to our cost of production for that crop that season, in consideration of the type of growing season we had, in order to decide what seeds to purchase for the coming season.
Since 1998, we have been growing both GM and non-GM corn and soybeans. (We don’t actually use the term “GM” or “GMO” since all domesticated crops have been genetically modified, but am using the acronym for the sake of this audience). We run the numbers ever year for every variety and every crop because that’s the only way to run any successful business. We collect the data on what worked and what didn’t work and make changes and improvements or what many businesses call “continuous quality improvement.”
2014 Corn Production Non-Irrigated
Cost Per Acre |
Non BT Corn |
BT Corn |
Seed |
$65 |
$114 |
Fertilizer |
$123 |
$123 |
Herbicide |
$40 |
$21 |
Crop Insurance |
$40 |
$40 |
Fertilizer Application |
$7.50 |
$7.50 |
Planting |
$28 |
$28 |
Nitrogen Application |
$9.50 |
$9.50 |
Pesticide Application |
$9.00 |
$9.00 |
Harvest |
$28.00 |
$28.00 |
Hauling |
$25.00 |
$25.00 |
Drying |
$60 |
$60 |
Land Rent |
$150 |
$150 |
Total Cost of Inputs |
$585/ac |
$615/ac |
BPA=bushels per acre |
186 BPA |
221 BPA |
Current cash price/bu
(Salisbury, MD) |
$4.01 |
$4.01 |
Gross Income/ac |
$745.86 |
$886.21 |
Net Income Difference |
$161 |
$271 |
2014 Soybean Production Non-Irrigated
Cost Per Acre |
Non-GMO for Food |
GMO for Feed |
GMO for Seed |
GMO High Oleic |
Seed |
$41 |
$53 |
$53 |
$53 |
Fertilizer |
$21 |
$21 |
$21 |
$21 |
Herbicide |
$40 |
$18 |
$18 |
$18 |
Crop Insurance |
$32 |
$32 |
$32 |
$32 |
Fertilizer application |
$7.50 |
$7.50 |
$7.50 |
$7.50 |
Planting |
$20 |
$20 |
$20 |
$20 |
Pesticide application |
$18 |
$18 |
$18 |
$18 |
Harvest |
$28 |
$28 |
$28 |
$28 |
Hauling |
$9 |
$9 |
$9 |
$9 |
Land Rent |
$150 |
$150 |
$150 |
$150 |
Total Cost of Inputs |
$366.50 |
$356.50 |
$356.50 |
$356.50 |
Bushels/Ac (BPA) |
35 BPA |
50 BPA |
50 BPA |
55 BPA |
Price/Bushel |
$12.25 |
$9.60 |
$11.50 |
$11.25 |
Gross Income |
$429 |
$480 |
$575 |
$619 |
Net Income Difference |
$62 |
$124 |
$219 |
$263 |
The first year we planted Bt corn was 2000. As you can see from the chart below, it has out-performed conventional corn every single year. What is most noteworthy however, is the importance of its performance in unfavorable growing years. We had drought conditions from 2010-2012. A healthy crop is a more productive crop and in bad years, that can make the biggest difference to the financial sustainability of the family farm.
Corn (Non-Irrigated) |
2000 |
2004 |
2010 |
2011 (drought & hurricane) |
2012 (drought) |
2013 |
2014 |
Biotech Acres | 10 | 276 | 573 | 397 | 464 | 290 | 275 |
Avg Yield BPA | 171 | 182 | 110 | 44 | 111 | 214 | 220 |
Conventional Acres | 647 | 415 | 195 | 213 | 261 | 75 | 200 |
Avg Yield BPA | 165 | 167 | 91 | 18 | 57 | 202 | 186 |
Biotech/Bt Yield Advantage |
6.4 | 15 | 19 | 26 | 54 | 12 | 34 |
Price/Bu | $2.35 | $2.55 | $5.18 | $6.47 | $7.40 | $4.41 | $4 |
Net income difference
Due to yield |
$15.04 | $38.25 | $98.42 | $168.22 | $399.60 | $53 | $136 |
Likewise in our soybean production history, we have consistently experienced a better yield in our GM soy over our non-GM soy. We grow four “classes” of soy: soy for food, soy for feed, soy for seed, and a specialty GM bean High Oleic (HO) acid beans. The HO beans go for feed but the oil that is extracted is used in baking and frying which eliminates the trans-fatty acids from using hydrogenated soybean oil as an ingredient. These beans are kept segregated and true to their variety in order to have the highest quality HO oil from the extraction process.
Soybeans (dryland) |
1998 |
2000 |
2005 |
2010 (slt drought) |
2011 (drought) |
2012 (drought) |
2013 |
2014 |
Biotech Acreage |
195 |
322 |
416 |
270 |
522 |
527 |
200 |
300 |
Yield bu/a |
54.2 |
50.3 |
53.5 |
46 |
37 |
43 |
48 |
55 |
Conven Acreage |
156 |
184 |
213 |
306 |
750 |
675 |
175 |
100 |
Yield bu/a |
48.2 |
43.2 |
46.3 |
36 |
34 |
36 |
25 |
35 |
Yield Difference |
6 bu |
7.1 bu |
7.2 bu |
10 bu |
3 bu |
7 bu |
23 |
20 |
$/Bushel |
$6.90 |
$6.62 |
$7.25 |
$11.30 |
$12.52 |
$14.55 |
$13.55 |
$11.25 |
Income Difference/ |
$41.40 |
$47.00 |
$52.20 |
$113.00 |
$37.56 |
$101.85 |
$312 |
$225 |
Even when there is a premium involved with growing a non-GM grain, due to better yields, GM has out-performed non-GM on our farm every year. We have experienced higher yields in all of our GM crops in the nearly 17 years we have been using the seeds. We grow what we have market access to sell in our region. Our choice to buy seed is based on the success of various seeds we have tried and well as University research conducted in our area. We don’t pay attention to data that comes from other growing regions in the US because it generally isn’t relevant to the conditions we experience. We use a “prove it” mentality in that we will give a seed a try on a limited number of acres and do our own compare and contrast to our other fields. Our decision making is balanced by diversity of the markets we can access, the demand within those markets, and the productivity that we have seen for ourselves to justify which type of seeds to plant each and every year.