The producer benefits of herbicide-resistant canola

Abstract

The commercial sale of herbicide resistant (HR) canola has raised questions about the benefits of this new technology for seed and chemical companies, farmers, consumers, and other players in the supply chain. In this paper, we argue that the pricing and adoption of HR canola in Canada can not be understood if producers are seen as being homogeneous. We develop a conceptual model of producer heterogeneity that represents the distribution of benefits among producers. In this context, some farmers benefit from the new technology leading to adoption, while others do not. Empirical evidence supports this argument. In addition, the new technology co-exists with the traditional technology.