A Methodology to Empirically Assess National and Farm-Specific Damages from Contamination of Grain Supply by a Genetically Engineered Strain. (August 2019)

• Record Type: Journal Article
• Authors: Capps, Oral; Babula, Ronald A.
• Is Part Of: Journal of agricultural and applied economics. Volume 51:Number 3(2019)
• Page Start: 495
• Page End: 510
• Publication Date: 2019-08
• Subjects: Assessment of national and farmer-specific damages, -- genetically engineered wheat, -- May 2013 wheat contamination, -- use of vector error correction model; C39, -- C51, -- Q11; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/aae.2019.16
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract: On May 29, 2013, the U.S. government announced that contamination of non–genetically engineered wheat supplies occurred. We provide a methodology to empirically assess the impacts of this contamination event on national prices and on farm-specific prices and receipts for spring red hard wheat. Results suggest that U.S. spring red hard wheat farmers in the aggregate had lost receipts ranging from $32.77 million to $131.06 million and incurred a drop of 3.83% in wheat price equivalent to $0.27 per bushel. At the farm level, a hypothetical farmer received $0.31 less per bushel culminating in $4, 807 in lost receipts.