An Agronomic and Economic Assessment of GMO Canola
1.0 Introduction
1.1 Background
Canola acres in western Canada have increased dramatically in the past few years. The 1996 Statistics Canada Census of Agriculture reported 40,974 growers producing 8.6 million acres in comparison to approximately 75,000 growers producing 13.7 million acres in 1999 and 12.1 million acres in 2000. One major impetus for the growth up to 1999 was the switch from grain (particularly wheat) due to low commodity prices. However, improved production efficiencies in canola have also likely been a factor in the increased acreage. The drop in acres from 1999 to 2000 probably resulted from low canola prices and concern over crop rotations.
Herbicide tolerant canola varieties have been rapidly adopted by western Canadian producers in the past four years. A survey of 300 canola growers in western Canada with 100 acres plus, conducted by the principals of Koch Paul Associates [1], revealed that in 1996 2% of the respondents grew Roundup Ready canola, 11% grew Liberty Link canola, and 14% grew Pursuit SMART trait canola. It appeared that most producers grew these varieties on a trial basis, as the average number of acres seeded to these varieties was less than one-third of the total acres seeded to canola by these producers.
In genetic engineering, novel genes are directly introduced to the plant. In mutagenesis, chemicals are used to induce modification of the plant's genes. In Canada, plants with novel traits are regulated by the Canadian Food Inspection Agency (CFIA). According to the CFIA, “plants in Canada are regulated on the basis of the traits expressed and not on the basis of the method used to introduce the traits. Plants with novel traits may be produced by conventional breeding, mutagenesis or recombinant DNA techniques”. The result is that, in Canada, plants that have had novel traits (such as herbicide resistance traits) added through any means are equally regulated.
International consumer and market concerns, however, have focussed on plants that have been modified using the tools of genetic engineering (transgenic plants), rather than by techniques such as mutagenesis. SMART (now called Clearfield) canola was modified using mutagenesis, rather than genetic engineering. Since including SMART canola in the study would have confused the issue of assessing the impacts of transgenic canola, it was excluded for the purpose of this study.
Currently almost 80% of growers are using at least one of three herbicide tolerant systems, and over 50% using one of the transgenic canola systems on some or all of their acres in western Canada. The transgenic varieties used in this study included the Roundup Ready and Liberty Link varieties. A survey on Integrated Pest Management (IPM) in canola conducted by Koch Paul Associates in the spring of 2000 suggests that the Liberty Link variety has about 29% of the transgenic canola market, while the Roundup Ready variety has the remainder.
The transgenic canola varieties on the market today are herbicide tolerant, providing the grower with improved weed control and other benefits such as the following: reduced herbicide use in some situations; increased conservation tillage practices; earlier seeding; and acreage expansion, basically because of weed management.
The 1996 study showed the most prevalent disadvantage of the biotech varieties was higher cost per acre. Lower yields, less effective weed control, greater management requirements, and the fear of introduction of volunteer canola in future crops were other commonly named disadvantages.
Public concern regarding the introduction of transgenic varieties in general is growing, as evidenced by the attention given by the media. Efforts by the industry to communicate factually to the public are a necessity.
The industry must be aware of the agronomic characteristics of transgenic varieties, as well as the economic impact to farmers, agri-businesses, processors and distributors, and rural communities in general. The information must be factual, and compared to conventional varieties, so the public and policy-makers can make rational decisions.
Serecon Management Consultants, in conjunction with Koch Paul Associates, has responded to the Terms of Reference as issued by the Canola Council of Canada, to carry out extensive primary and secondary research with western Canadian canola producers. The findings were analyzed, determining the level of agronomic and economic characteristics of transgenic canola. A comparison was then made to conventional canola varieties.
A rational discussion about transgenic canola requires information about two relationships: how farmers will incorporate the technology and how the markets will respond to the technology. This study is intended to clearly outline these two relationships; to discuss what factors impact them; and to provide an analysis of the ultimate agronomic, environmental, economic, and social impacts.
An analysis of farm level adoption requires an understanding of how and why producers change agronomic practices. The response of individual producers will be based on the adjustment of agronomic practices as a result of quantifiable economic factors and/or environmental concerns.
The response of markets to transgenic canola will rely on some of the data generated in the initial analysis. An economic model was also developed to quantify the impacts at a micro and macro level.
The end product of the analysis is a concise summary of agronomic and economic impacts of transgenic canola, at the individual farm level and the national level.
1.2 Study Objectives
The objective of this study is to “qualify and quantify the agronomic and economic impacts associated with transgenic canola to better understand the impact it has had on agriculture in western Canada”.
Specific focus areas, as outlined by the Canola Council of Canada in the Request for Proposal for this study were as follows:
Agronomic and Environmental Issues:
- determine the impact of transgenic varieties on yield and quality (grade, dockage, green seed);
- determine variances in canola production practices and environmental factors;
- determine variances in conservation tillage / fertilizer / seeding / pest control / rotations / weed control / subsequent crops / control of volunteer canola / management of weed resistance / moisture conservation / soil conservation / acreage expansion; and,
- quantify key agronomic/economic characteristics of transgenic canola compared to conventional systems: e.g. weed control measures, input costs, contribution margin, etc.
Economic Issues:
- determine the economic impact of transgenic canola on global canola pricing;
- determine the impact of transgenic canola on local businesses; and,
- determine other economic benefits and impacts.
The information from this project will be used to:
- quantify the impact of transgenic canola on the individual Canadian canola producer and the economy; and,
- respond to producer, consumer and industry questions on the impact of transgenic canola on producers, the environment and the economy.
1.3 Study Methodology
The study was completed in six distinct steps. Figure 1.1 outlines the various steps, and provides a brief overview of the anticipated outcomes.
The goals of each of the first four steps in the methodology were related to the need for the collection and characterizing of raw data by agronomic practice category and geographic location. Once this data was collected and organized, it was effectively incorporated into the economic model.
Figure 1.1
Study Methodology
Steps 4 to 6 were dependent on a synthesis of the data from Steps 2 and 3.
To complete Step 3 a total of 650 farmers were surveyed, including 325 producers growing transgenic canola and 325 growing conventional canola.
Step 4 included 13 detailed case studies completed in Manitoba, Saskatchewan, and Alberta, covering different eco-regions and farming practices.
Footnotes
[1] “Biotech Traits Commercialized Survey” Context Consulting and The Advisory Group, November, 1996.