Biotech Research Helps Create Knowledge-based Economy
Date: 20.10.2006
Plant biotechnology is helping to create a vibrant knowledge-based economy throughout the United States, according to a study by a University of Minnesota professor.
Ag and food science jobs pay $52,310 — more than 1.5 times the U.S. average.
"The vast stock of plant breeding and genomic research and development knowledge that led to the biotech revolution will generate billions of dollars in additional economic benefits for farmers and others in the agrifood value chain and within public and private research communities," said C. Ford Runge, director of the Center for International Food and Agricultural Policy and Distinguished McKnight University Professor of Applied Economics and Law.
The study, "The Economic Status and Performance of Plant Biotechnology in 2003: Adoption, Research and Development in the United States," provides a detailed view of biotechnology's value at the farm level and beyond the farm gate, where the crops — and the research and development that creates them — generate additional jobs, income and investment in the agrifood chain and public and private research community. The study was supported by the Council for Biotechnology Information.
"It's clear why farmers have been adopting these crops: managerial efficiencies and increased profits per acre," said Runge.
Since their introduction in 1996:
* Bt corn plantings have increased from 4 percent of total U.S. corn acres to 40 percent in 2003.
* Biotech cotton plantings have increased from 17 percent of U.S. cotton acres to 73 percent in 2003.
* Biotech soybean plantings have increased from 9 percent of U.S. soybean acres to 81 percent in 2003.
"The most compelling evidence for me as an economist of the value of biotech crops is the preference of farmers to plant these crops year after year after year," said Runge.
Four commercial biotech crops — corn, soybeans, cotton and canola — represented $20 billion in value in the United States in 2002, half of the total $40 billion value of the four crops.
The U.S. Corn Belt and cotton-growing regions gained the most economic value from planting biotech crops in 2002, led by Iowa ($3.8 billion), Illinois ($2.5 billion), Minnesota ($2.2 billion), Nebraska ($1.8 billion), Indiana ($1.3 billion) and South Dakota ($1 billion). Following these major corn and soybean growing states, Missouri was next with $1 billion, followed by North Dakota ($689 million), Ohio ($619 million) and cotton-producing states Arkansas ($670 million) and Mississippi ($528 million).
But the economic effects of plant biotechnology are being felt far beyond the farm.
"New plant biotech firms and research facilities are being created throughout the United States," said Runge. "The number of agricultural and food scientists are increasing as workers are attracted to the biotech sector's above-average wages, and a large number of individual states are reaping the benefits of this investment and job-related activity. While 41 of 50 states had some type of biotech initiative by 2001, those that have aggressively adopted and invested in biotechnology are reaping the greatest rewards."
Corn Belt states with higher adoption levels of biotech crops — South Dakota, Nebraska, Kansas, Minnesota and Iowa — have a greater proportion of ag and food science jobs than those with lower levels of adoption. For example, Iowa, one of the top five states in crop biotech adoption, has 50 ag and food science jobs per 100,000 jobs, more than lower adoption states. The average annual salary for these jobs in 2001 was $52,310 — more than one and a half times the U.S. average of $34,020.
In Wisconsin, where 56 of the 200 bioscience companies are dedicated to agriculture, the study indicated there are 21,000 workers who account for $5 billion of the Badger state's economy.
"This sector now represents enormous value — and extends to the national economy," said Runge, adding that even more densely populated states such as Connecticut, Maryland and Rhode Island are creating biotech jobs. "The jobs that are being created are knowledge-based, high-paying and highly specialized."
In the past two years, field tests have been conducted on 100 new biotech crop traits by 40 universities and 35 private sector companies — from a new variety of corn with an improved nutritional profile for use as an animal feed to a type of wheat that can better withstand droughts. Runge said continued investment in research and development — along with more public education about the benefits of biotechnology — is key to achieving further gains from plant biotechnology.
"As consumer confidence grows, it will feed the demand for new biotech varieties, increase the advantages of those willing and able to supply them, and indirectly establish a base of support for continued public investments in plant biotech," he said. "That translates directly into high social rates of return in the form of educational and job opportunities."
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