Government Policy Implications of Crop Rotational Effects of Biotechnology

Commercially grown genetically modified organism (GMO) corn and soybean varieties were first introduced in the United States in 1996. Since then, farmers have rapidly adopted herbicide tolerance (HT), insect resistance (Bt), and stacked (both traits) GMO corn and soybean varieties.

Many studies have considered a variety of broad‐based implications of using GMO crop varieties(e.g. Van der Sluis, Diersen, and Dobbs 2002). Recent studies suggest that GMO adoption rates may be linked to changes in agricultural producer production practices (e.g., Fausti et al. 2012; Scandizzo and Savastano 2010).

The development of corn and soybean biofuel conversion technology as an alternative to fossil‐based fuels allowed U.S. energy policy to implement mandates for biofuels. The policy goal is to have biofuels become an important source of energy for the U.S. economy. The two primary legislative mandates are the 2005 Energy Policy Act and the Energy Independence and Security Act of 2007. The current legislation sets minimum annual consumption levels in four broad‐based biofuel categories: cellulosic, biomass‐based diesel, undifferentiated advanced, and renewable energy.

While there is no explicit mandate for corn‐based ethanol, corn has dominated as a source for biofuel production because of its cost‐advantage relative to alternative biofuels. Further, U.S. biofuel policies have had far‐reaching consequences. In particular, recent studies suggest that corn demand driven by increased corn‐based ethanol production has influenced producer crop rotation patterns in the U.S. (Kurkalova, Randall, and Secchi 2010; Marshall 2011).