Greater Refuge Requirements Mean Less Cotton Returns

October 23, 2000

A National Cotton Council (NCC) economic analysis shows that increasing the refuge requirements for Bt cotton would reduce the net returns to U.S. cotton growers by about $25 million. "In a year with high (insect) pressure, the losses could easily approach $50 million," NCC economist Dr. Kent Lanclos told an EPA Science Advisory Panel (SAP) on Bt technology in Washington.

"Losses of this magnitude will undoubtedly cause some growers to evaluate their continued use of Bt cotton," Lanclos continued. "The National Cotton Council believes the 2001 refuge requirements for Bollgard I (cotton) should be retained under the re_registration with some added flexibility that should ensure a high level of compliance by producers."

The NCC analysis revealed that the 90_10 untreated acreage refuge option would result in an aggregate annual economic loss of up to $19 million over the 95_5 option. For the treated refuge option, the aggregate net loss from the increase in the refuge requirement would be $6 million. Those losses would be exacerbated under a high insect pressure scenario, Lanclos noted.

Composed of independent scientists, the SAP was hearing public comments, giving science_based presentations and beginning the review of data the EPA has compiled on the risks and benefits of insect_protected crops developed through biotechnology. Specifically, they reviewed those crops which contain genes from the bacterium Bacillus thuringiensis (Bt), which controls cotton bollworms, tobacco budworms and pink bollworms in cotton. Those products, which have been registered for use by EPA since 1995, are due for re_registration in 2001.

Lanclos told the panel that since commercial introduction in 1996, plantings of Bt varieties have grown to account for about 35% of U.S. cotton acreage. "This rapid adoption is testimony to the many benefits delivered by Bt cotton," Lanclos said, "including reduced pesticide usage, better control of target cotton pests, improved profitability, reduced farming risks, improved beneficial insect populations and improved farm worker safety."

The economist said total production losses to bollworms and budworms in 1995 were almost 750,000 bales, more than 4% of the total upland crop that season. Including treatment costs, the total economic loss to U.S. cotton producers was about $476 million. However, with the introduction of Bt varieties, that total loss was trimmed to $125 million by 1999 _ 74% below the 1995 level.

Lanclos said numerous studies have confirmed that Bt cotton confers a significant economic advantage relative to conventional technologies __ $50 per acre compared to conventional varieties. "These larger returns are a reflection of higher yields for Bt cotton and the lower cost of control," he said.