The Economic Impact of Bt Corn Resulting from Mycotoxin Reduction

The insecticidal proteins in genetically modified hybrid Bt corn (Zea mays spp.) reduce insect damage, which in turn can reduce infection of the grain by mycotoxigenic fungi. Lower levels of Fusarium mycotoxins, fumonisin, and deoxynivalenol in Bt corn could have significant market and health impacts, both in the United States and around the world. These impacts are foregone losses through market rejection, human health losses, and animal health losses. We estimate that at current planting levels, Bt corn saves farmers in the United States about $17 million annually through reduced fumonisin and deoxynivalenol damage alone. Though not extensively grown in developing countries, the benefits there in mycotoxin reduction could be even more significant, particularly in regions where corn is a staple in the human diet.