The take home message on economic returns:
"A difference of $5.80 per acre in favour of transgenics was calculated, based on these reported results"
A survey of 650 western Canadian canola growers was undertaken in October/November 2000.
The study was designed to compare transgenic canolas to conventional canolas.
The survey sample was managed to reflect a 50% split between conventional and transgenic system growers so that comparisons in economic performance and agronomic practices could be made between the two groups. Some respondents grew both types. In this case, the grower was asked to respond to the survey questions based on the type of which he/she grew the most acres. Further, if the respondent grew more than one variety of the system for which they were answering, he/she was requested to answer for only one variety; again the one of which he/she grew the most acres. Respondents could provide answers for the inputs and outputs for more than one field, only if those fields were treated identically in terms of seed variety, practices, and treatments, and if the yields were the same.
Key extracts of this report, available at the Canola Council of Canada website, are as follows:
2.5.5 Combined Operations
Because several of the above operations may be performed in combination with others, an analysis was conducted to estimate the impact of the combined operations. There was a total of 401 (n=637) different combinations of transgenic/ conventional, summer fallow in 1999 (or not), direct or regular seeding, number of herbicide applications, number of fertilizer applications and number of tillage and harrowing operations.
The assumed prices for the operations calculations were as follows:
* direct seeding - $12.00;
* not direct seeding - $8.00;
* foliar herbicide app - $4.00 (applied to transgenic operations only;
* foliar + incorporated herbicide app - $4.65 (applied to conventional operations only);
* tillage - $6.00;
* harrowing - $3.50;
* fertilizer alone - $7.00; and,
* incremental fertilizer or herbicide cost - $1.00.
Table 2.18 Cost of Combined Operations
_________________Transgenic n=321__ Conventional n=316
Average # Combined Operations Per Acre 6.36.............7.07
Average blended cost per operation..........$5.80...........$5.91
Average Cost/Acre of Combined Operations $36.90. $41.75
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Link to more graphic image of this table
2.7.1 Yield
Yields were reported to be 10% higher for the transgenic system over the conventional. The average yield before dockage for the transgenics was 29.25 bu/acre, and for the conventionals, 26.54 bu/acre. Yields reached a maximum of 55 bu/acre for transgenics and 72 bu/acre for conventional canolas.
Had the transgenic growers only planted a conventional variety, their anticipated yield on these acres would have averaged 7% fewer bushels per acre. Thirty-nine percent of the growers felt the yield would have been comparable, 17% thought the yield would have been higher, and 44% thought it would have been lower.
2.7.5 Grower Reported Return per Acre
The grower reported return per acre (after all input costs, labour, etc.) [1] for transgenic (n=241) was $19.92 and for conventional (n=192) $14.12.
The range in net return per acre reported by the growers was -$80.00 to +$240.00 for the transgenics and -$120.00 to +$180.00 for the conventionals. A difference of $5.80 per acre in favour of transgenics was calculated, based on these reported results. These values would have included the premium for contract varieties, the TUA (if applicable) and any other expenses the growers had recorded for these canola acres, such as custom application costs, insect and disease control, etc.
Had the transgenic growers only planted a conventional variety, they anticipated their net return per acre on these acres would have averaged $15.54 or 22% less than actually recorded. Forty-six (46%) of the growers felt the net return would have been comparable, 18% thought the net return would have been higher, and 37% thought it would have been lower.
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