The debate on biotechnology, or specifically on genetically modified organisms (GMOs), has quieted down in the past year from the fever-pitch level of more than two years ago, although the opposition against the modern technology that is seen to dominate the new millennium still persists.

At the center of the debate in the country was the controversial Bt (Bacillus thuringiensis) corn, the product of a process where the Bt protein found in the soil is integrated into the corn plant to equip it with a high degree of resistance to the damaging Asian corn borer.

Critics oppose the technology in the name of human safety and the environment, despite the scientists' persistent denials of such peril, and painstaking explanations that there has been no evidence to that effect.

But, at least, so far now, the days of plant pulling, such as in the Bt corn field trial in Tamapkan, South Cotabato, and the emotion-filled rallies or for a against the technology, have passed.

Since the Department of Agriculture approved in December 2002 the commercial release of Bt corn, what have been seen and heard are testimonies in favor of the main beneficiaries of the technology-the farmers-on the advantages of the use of Bt corn.

In a paper at the 45th National PAEDA Convention in Quezon City in October, entitled "Economic Impact of Bt Corn in the Philippines," Jose M. Yorobe Jr., assistant professor of the Department of Agricultural Economics at the University of the Philippines Los Baños, said that after one year of commercial adoption in only about 10,000 hectares planted to Bt corn in the country, substantial unit-yield increase of as much as 37 percent was realized by the Bt corn farms.

"This translates to an additional profit of P10,132 per hectare with a reduction in insecticide expenditures of 60 percent. An incremental net income of P1.34 per kilogram was gained by the Bt-corn users, although the seed cost was twice the ordinary hybrid," Yorobe said in the paper. He acknowledged that the paper was part of a study by the international Service for the Acquisition of Agribiotech Applications (ISAAA), a not-for-profit organization, on the impact of Bt corn in the Philippines. ISAAA centers are based in the Philippines, Kenya and the United States.

He stressed that the adoption of Bt corn in the country, albeit still limited in time and hectarage, showed a significant impact on the farm financial performance as shown by the adoption elasticity that was even higher than those observed in developed countries. The Yorobe paper used data from the ISAAA survey, which interviewed 107 Bt and 362 non-Bt corn farmers in the wet and dry seasons of crop year 2003 and 2004 in four major Bt-corn adopting provinces of Isabela, Camarines Sur, Bukidnon, and South Cotabato.

At least three towns and three barangays per town were chosen based on the density of Bt-corn adopters.

Lesser use of insecticide

Before the adoption of Bt corn in the Philippines, damage by the Asian corn borer on corn yield had reached as high as 30 percent, or a low of 4.3 percent. Farmers used insecticides, which have been proven costly and unsafe to the human health and to the environment. With the Bt corn, Yorobe said insecticide use by farmers was reduced based on the amount spent on insecticides per hectare. About P168 per hectare was saved on insecticide expenditures by Bt-corn farmers. "This implies that farmers sprayed fewer times and used less insecticides," he said.

Yorobe explained that Table 1 showed that the amount used by non-Bt farmers on insecticides was relatively high in Isabela and Camarines Sur because of the prevalent incidence of corn borer. The cost advantage was not conspicuous in Bukidnon especially during the second (dry) season because the incidence of corn borer was slight. More insecticide use was also reported in Bukidnon in the wet season because of the prevalence of corn borer.

High yield and income

Of course, the major consideration in the use of new technology-this time Bt corn-is profitability. Farmers venture into new methods to be able to increase their income. The reduction in pest damage, Yorobe said, translates to better yield and income. He stressed: "Experiences in other countries already indicate the superior financial performance of Bt- corn farms over the non-Bt corn ones." A comparison of mean yield per hectare of Bt corn and non-Bt corn showed the "substantial absolute advantage" of Bt corn (Table 2).

Yorobe observed that in all locations in both cropping seasons, the Bt-corn farms had a yield advantage of 34.32 percent over non-Bt corn users, with a high of more than 37 percent in Camarines Sur and South Cotabato. The average yield of Bt-corn farms was 4,850 kg/hectare compared to only 3,610 kg/hectare for non-Bt corn.

The study said that financial evaluation on the performance of Bt-corn farms also indicated an increase of about 25 percent in profitability over non-Bt corn farms. The yield differences between Bt corn and non-Bt corn farms were "statistically significant" in all locations, except in Bukidnon, the study said, at 1-percent level for the first cropping, and 5-percent level for the second cropping. The favorable growing conditions in Isabela and South Cotabato in the second dry season contributed significantly to better corn production, Yorobe said.

Table 3 presented an evaluation of the financial performance of Bt and non-Bt farms for 2003-2004. The production coast of a kilo of Bt corn was lower by 23 centavos than the non-Bt, but cash costs were higher. The net income per kilo showed a difference of 10 centavos for the Bt corn and had an advantage of more than P1/kg in returns over the non-Bt varieties. Yorobe also observed that Bt corn received a premium price in the market due to better quality and less impurities. He said that Bt-corn farmers, particularly in Camarines Sur and Bukidnon, received premium prices by as much P1.61/kg during the second crop. Many farmers traced this to the fact that Bt-corn kernels and ears were bigger and cleaner with uniform sizes.

In sum, (Table 4) the increase in total revenue of Bt corn farms amounts to P14,849 per hectare, with savings of P168/hectare in insecticide expenditure. Although the seed costs were twice higher than the non-Bt varieties, the study showed that the profit advantage almost doubled. The benefit cost ratio of 2.014 shows the better performance of Bt corn. With the estimated area planted to Bt corn in 2003-2004 at 10,769 hectares, Table 5 shows the results of the distribution of benefits. The estimates are presented by region owing to wide differences in agro-climatic conditions and management practices across regions, Yorobe explained.

Variations in yield per hectare and cost per unit were evident in the results. With a larger area planted to Bt corn and a higher cost reduction per unit, the net benefit to farmers was largest in Northern Luzon, with P20.95 million. Farmers in Northern Mindanao had negative benefits as more costs were reported on fertilizers, chemicals and hired labor. Farms in these areas also experienced drought and stalk rot infestation.

After one year of commercialization, the net benefit to farmers in the aggregate amounted to p46.44 million. This was estimated using the area planted to Bt and the reduction in per-unit costs. The estimated gross revenue by the seed company was P43.48 million, which includes the cost of the technology. These benefits, Yorobe underlines, represent the direct and immediate impact of the corn industry and now cover the indirect effects with other industries, like livestock, where corn is a big demand.

Farmer's profile

It is interesting to note that there are some noticeable differences observed in the characteristics between Bt and non-Bt corn farmers, which could be important factors in the adoption of the new technology. (Table 6) It shows that Bt corn farmers were relatively younger (45.38 against 46.77 years), and have larger farms (4.04 hectares against 2.47 hectares) than their non-Bt counterparts.

The area planted to Bt corn was also larger (2.64 hectares) compared to non-Bt corn (1.64 hectares). Bt corn farmers were also better-educated (about 10 years of formal schooling against the non-Bt corn users' eight years); they earned more-over P2,000 a month-from other sources besides farming, and this is an important source of capital for farming operations.

The study also showed that although fewer Bt corn farmers were members of farmers' organizations many of them (91 percent) have frequent contact with extension workers.

What needs to be done?

With the high cost of Bt corn seeds, Yorobe said finding ways to reduce that cost will certainly result in a net benefit to farmers.

"The current effects are still minimal considering an adoption rate of only 1 percent," he said. In order to further realize the benefits of Bt corn through higher adoption rates, public support is needed in terms of information dissemination, development of the Bt-corn seed market and the government incentives to facilitate farmers' access to the technology.

He said that the availability of Bt-corn seed is still limited and domestic-seed production capacity is still low. "As the seed market is opened to other entrants, the adoption rate and welfare gains are expected to increase in the future," he said.

Despite its current limitations, Yorobe said that the results of the one-year introduction of Bt corn to Filipino farmers "clearly favor the national agenda of increased productivity and income for small corn farmers."

But, he asserted, "the adoption level should be increased."