Since the first commercialisation of GM crops in 1996, there has been rapid global adoption, suggesting GM crops are providing benefits to farmers. Australia’s experience with GM field crops has been limited to GM cotton. Various GM cotton varieties are available to Australian cotton farmers and adoption has now exceeded 90 per cent of total cotton planting area.
In this report the potential economic impacts of GM crop adoption in Australia are assessed. The analysis was conducted at the state and regional level. Adoption of GM canola is estimated to increase both state and regional gross income. The highest increase is projected in the Rest of New South Wales region, at $273 million (in 2006-07 dollars) over 10 years under an early adoption scenario and at $121 million (in 2006-07 dollars) over five years under a delayed adoption scenario. The difference between the estimated gains under the two scenarios indicates substantial foregone benefits are associated with delaying adoption. Significant economic benefits of adopting GM canola are also projected for other states.
The economic impact of the potential introduction of five GM crops — canola, soy bean, maize, rice and wheat — from 2008-09 and 2013-14 respectively was also considered. Under the scenario that GM canola is adopted alongside four other GM field crops — soy bean, maize, wheat and rice — the cumulative economic gains to states/regions are projected to range from $174 million (in 2006-07 dollars) in Queensland to $2.9 billion (in 2006-07 dollars) in the Rest of New South Wales over 2008-09 to 2017-18 (figure b). The benefits are reduced where adopting these crops is delayed. If the adoption is delayed to 2013-14, the benefits to states/regions would range from $115 million in Queensland to $1.3 billion in the Rest of New South Wales. |
