Alternative financing schemes are needed to ensure that small farmers adopting the genetically modified Bt corn will optimize their use of inputs as required by the package of technology.

Dr. Leonardo A. Gonzales, an international agricultural economist and policy consultant, made this recommendation after monitoring and evaluating the socio-economic impact of Bt corn in the Philippines in four seasons from 2003 to 2005.

The study covered four major corn producing provinces – Isabela, Camarines Sur, Bukidnon, and South Cotabato.

The study showed that despite its relatively higher seed cost (six percent higher), Bt corn of the YieldGard variety had a higher contribution to return on investment (ROI) than ordinary yellow hybrid corn by 10 percent. The contribution of YieldGard seed to ROI was 28 percent, while that of non-Bt hybrid corn was only 18 percent.

In his analysis, Dr. Gonzales noted that the higher ROI of Bt corn was driven by its higher yield compared to ordinary yellow hybrid corn. On the average, the yield of YieldGard was 829 to 831 kg/ha (kilograms per hectare) higher than non-Bt corn. Likewise, the income derived from Bt corn was P0.20 to P1.22/kg higher than from non-Bt hybrid corn.

The higher yield performance of Bt corn is due to its capacity as a genetically modified plant to resist the Asiatic corn borer because of the presence of the Bacillus thuringiensis gene.

The yield performance of Bt corn over ordinary hybrid corn is accentuated with Asiatic corn borer (ACB) infestation. The heavier the damages caused by ACB, the better would be the yield and economic performance of Bt corn over non-Bt hybrid corn.

Gonzales said that in South Cotabato, the province with the highest yield loss due to ACB infestation, also had the highest yield, farm cost efficiency, and net farm income over ordinary hybrid corn in the 2005 dry season.