how attitudes affect farmers’ preferences for biotechnology: the case of corn growers in brazil

How Attitudes Affect Farmers’ Preferences for Biotechnology: the Case of Corn Growers in Brazil

Alexandre Gori MaiaInstitute of Economics - University of Campinas

(UNICAMP)Email: [email protected]

Jose Maria Jardim da SilveiraInstitute of Economics – University of Campinas

(UNICAMP)Email: [email protected]

mailto:[email protected]

mailto:[email protected]

Introduction• Aim: Analyze how attitudes affect farmers’

preferences for biotechnology: the case of corn growers in Brazil.

• Material:▫ Primary Data: 300 questionnaires;

• Methods: ▫ Factor Analysis;▫ Conjoint Analysis – Rank Ordered Probit Model;

17 th ICABR, 2013 Gori Maia & Jardim da Silveira

Introduction Background Material & Methods Results Conclusion 2/13

Background• Main Brazilian Producing Regions: Bahia, Goiás, Mato Grosso, Mato Grosso do Sul, Minas

Gerais and Santa Catarina;

Corn Production in Brazil

Introduction Background Material & Methods Results Conclusion


Total Corn Area GM Corn Area

3/13

Methods• Principal Component Factor : observable variables (Xi) can be decomposed in common factors (Fj) and

unique factors (Ui):

Factor Analysis



iimimii UdFaFaX ...11

Totally Agree

Partially Agree Neutral Partially

DisagreeTotally

Disagree

X1 - Question 1 1 2 3 4 5

X2 - Question 2 1 2 3 4 5

X3 - Question 3 1 2 3 4 5

...

X17 - Question 17 1 2 3 4 5

Factor 1

Factor 2

Factor m

...

4/13

Methods

• Contingent Choice: weak information;Conjoint Analysis - Formats



Scenario D

Scenario C

Scenario B

Scenario A

Scenario C

• Contingent Rating: Strong assumptions;

Scenario D

Scenario C

Scenario B

Scenario A

Rate7 5 8 4

• Contingent Ranking: Complete order preference;

Scenario D

Scenario C

Scenario B

Scenario A

Order1 2 3 4

Scenario D

Scenario C

Scenario B

Scenario A

5/13

MethodsConjoint Analysis - Scenarios



Type PriceBt Lower (R$ 180 / bag + R$ 80 royalty)

Average (R$ 230 / bag + R$ 80 royalty) Higher (R$ 280 / bag + R$ 80 royalty)RH Lower (R$ 180 / bag + R$ 80 royalty)

Average (R$ 230 / bag + R$ 80 royalty) Higher (R$ 280 / bag + R$ 80 royalty)Hybrid Lower (R$ 110 / bag)

Average (R$ 130 / bag) Higher (R$ 150 / bag)Variety Lower (R$ 50 / bag)

Average (R$ 60 / bag)

Higher (R$ 70 / bag)

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Methods

• Utility: the utility for alternative j of individual i :

Conjoint Analysis – Rank Ordered Probit Modelo



ijijijU

• Probability: if famer i choose alternative j in comparison with k: )Pr()Pr( ikiji UUjY

• Ordered Probit: Making some assumptions about the error term () : ik

ij

eejYi

)Pr(

• Model: the expected utility can be modeled as:

jjiij zx

Characteristics of individu

als

Characteristics of alternatives

7/13

ResultsAttitudes

• Questions related to different themes (environment, trust, risk perception, knowledge);



Question Totally Agree

Parcially Agree Neutral Partially

DisagreeTotally

Disagree1. The scientific research has improved agricultural production 70.5 19.0 5.8 2.4 2.4

2. The scientific research has improved human life. 63.4 22.0 7.8 4.1 2.73. The human has caused serious damage to the environment. 68.0 18.4 6.1 3.1 4.4

4. The agricultural production has caused serious damage to the environment. 32.9 27.7 7.5 9.6 22.3

5. The use of pesticides in agriculture has caused serious health problems. 73.2 11.3 6.5 2.4 6.5

6. The government policies in agriculture is reliable. 21.6 21.9 17.5 13.0 26.07. The public agencies that develop agricultural research (EMBRAPA, EMATER, EPAGRI, ...) are reliable.

53.1 19.0 15.3 6.5 6.1

8. Private companies that produce seeds for agriculture are reliable. 39.0 19.9 16.1 11.6 13.4

9. There are corn seeds that are resistant to agricultural pests. 71.4 5.8 11.2 6.1 5.4

10. There are corn seeds that are resistant to herbicides. 66.9 8.5 14.7 3.8 6.1

11. There are corn seeds that are more productive than conventional ones 79.3 8.8 6.3 1.7 3.9

12. There are types of maize cultivation that cause less impact on the environment. 55.8 10.5 18.0 3.8 11.9

13. The fluctiation of the price paid to the producer is always a factor of high risk in corn production. 61.6 10.9 7.5 3.7 16.3

14. The climate fluctuation is always a factor of high risk in corn production. 85.4 9.5 1.0 1.4 2.7

15. The fluctuation of the price of inputs is always a factor of high risk in corn production. 72.5 8.8 6.4 4.4 7.8

16. The rise of pests is always a factor of high risk in corn production. 69.8 17.0 3.1 5.4 4.8

17. The rise of weeds is always a factor of high risk factor in corn production 58.3 18.8 3.8 9.7 9.4

Question Totally Agree

Parcially Agree Neutral Partially

DisagreeTotally

Disagree1. The scientific research has improved agricultural production 70.5 19.0 5.8 2.4 2.4

2. The scientific research has improved human life. 63.4 22.0 7.8 4.1 2.73. The human has caused serious damage to the environment. 68.0 18.4 6.1 3.1 4.4

4. The agricultural production has caused serious damage to the environment. 32.9 27.7 7.5 9.6 22.3

5. The use of pesticides in agriculture has caused serious health problems. 73.2 11.3 6.5 2.4 6.5

6. The government policies in agriculture is reliable. 21.6 21.9 17.5 13.0 26.07. The public agencies that develop agricultural research (EMBRAPA, EMATER, EPAGRI, ...) are reliable.

53.1 19.0 15.3 6.5 6.1

8. Private companies that produce seeds for agriculture are reliable. 39.0 19.9 16.1 11.6 13.4

9. There are corn seeds that are resistant to agricultural pests. 71.4 5.8 11.2 6.1 5.4

10. There are corn seeds that are resistant to herbicides. 66.9 8.5 14.7 3.8 6.1

11. There are corn seeds that are more productive than conventional ones 79.3 8.8 6.3 1.7 3.9

12. There are types of maize cultivation that cause less impact on the environment. 55.8 10.5 18.0 3.8 11.9

13. The fluctiation of the price paid to the producer is always a factor of high risk in corn production. 61.6 10.9 7.5 3.7 16.3

14. The climate fluctuation is always a factor of high risk in corn production. 85.4 9.5 1.0 1.4 2.7

15. The fluctuation of the price of inputs is always a factor of high risk in corn production. 72.5 8.8 6.4 4.4 7.8

16. The rise of pests is always a factor of high risk in corn production. 69.8 17.0 3.1 5.4 4.8

17. The rise of weeds is always a factor of high risk factor in corn production 58.3 18.8 3.8 9.7 9.4

• Farmers see positively scientific research and agriculture, as well they see negatively the use of pesticides;

• Skepticism in relation to the impact of agriculture on environment;

• They trust more in public than private agricultural agencies;

• High knowledge about types of GM corn;

• Climate instability and the rise of pests are the main factors of risk;

8/13

ResultsFactor Analysis

• 5 common factors (Fi), which explained 53% of the total variability;



Question Factor1 Factor2 Factor3 Factor4 Factor5 Uniqueness1 0.134 -0.028 0.088 0.829 0.067 0.2822 0.044 -0.035 0.017 0.830 0.046 0.3063 -0.021 0.679 0.087 0.258 -0.138 0.4454 0.020 0.739 -0.046 -0.120 0.194 0.4005 0.000 0.753 -0.078 -0.113 0.136 0.3966 0.350 0.016 -0.167 -0.098 0.383 0.6937 0.598 -0.204 -0.070 0.170 0.161 0.5428 0.496 -0.423 -0.136 0.164 0.227 0.4789 0.663 0.022 0.248 0.240 -0.073 0.435

10 0.712 0.129 0.155 -0.063 -0.161 0.42311 0.494 -0.011 0.124 0.254 0.160 0.65112 0.254 0.074 0.511 0.092 -0.089 0.65313 -0.023 -0.088 0.568 0.108 0.247 0.59714 -0.012 0.064 0.639 0.014 0.188 0.55215 0.140 -0.050 0.802 0.057 -0.036 0.33016 0.097 0.059 0.073 0.004 0.772 0.38717 -0.189 0.142 0.072 0.200 0.695 0.416

Factors Loadings• Factor 1 (17%): Unfamiliarity with GM seeds and mistrust in agricultural agencies;

• Factor 2 (12%): Environmental skepticism;

• Factor 3 (9%): Lack of risk perception;

• Factor 4 (8%): Mistrust in scientific research;

• Factor 5 (7%): Lack of risk of pests and weed;

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ResultsRevelead Preferences

• Unfamiliarity with GM seeds and mistrust in agricultural agencies (Factor 1) is higher among non-GM farmers;



Producer Factor1 Factor2 Factor3 Factor4 Factor5 nBt -0.323 0.575 -0.391 -0.162 0.047 64RH -0.220 -0.137 -0.272 0.252 0.310 10

Hybrid 0.017 -0.005 0.033 -0.097 0.171 105Variety 0.468 -0.160 0.355 0.190 0.013 86


Hybrid 0.017 -0.005 0.033 -0.097 0.171 105Variety 0.468 -0.160 0.355 0.190 0.013 86

• Bt farmers show higher degree of environmental skepticism (Factor 2);


Hybrid 0.017 -0.005 0.033 -0.097 0.171 105Variety 0.468 -0.160 0.355 0.190 0.013 86

• Risk perception is higher among GM farmers (Factor 3);


Hybrid 0.017 -0.005 0.033 -0.097 0.171 105Variety 0.468 -0.160 0.355 0.190 0.013 86

• Trust in scientific research is greater among Bt farmers and lower among RH farmers (Factor 4);

• No evident of association for pests and weeds (Factor 5);


Hybrid 0.017 -0.005 0.033 -0.097 0.171 105Variety 0.468 -0.160 0.355 0.190 0.013 86

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ResultsStated Preferences• Ordered Probit Model:



• Characteristics of the alternatives (zj): Lower (1 for price lower than average) and Higher (1 for price higher than average);

ik

ij

eejYi

)Pr( jjiij zx

• Characteristics of the individuals (xj): • Area: area in hectares;• D_Bt (1 for Bt farmer), D_RH (1 for RH farmer),

D_Hybrid (1 for hybrid farmer) and D_Variety (1 for variety farmer);

• Factor1 – Factor5: scores for the 5 common factors;• Two models:• Unrestricted: whole set of variables;• Restricted: without dummy variables for type of farmer;

11/13

ResultsStated Preferences• Price: no evidences that prices affect stated preferences;



• Area: producers with larger areas are more likely to adopt Bt corn; • Type of farmer: farmers cultivating GM seed are less likely to adopt non-GM seeds;

• Trust in scientific research: the trust in scientific research is positively related to the propensity to adopt GM seeds;

• Knowledge: the lower the knowledge with GM seed, the lower the propensity to adopt Bt seed;

• Environmental attitudes: the higher the environmental skepticism, the higher the propensity to adopt Bt seeds;

12/13

Finals Considerations• Characteristics: farmers see positively the role of scientific research on agriculture and they are more skeptical in relation to the impacts of agriculture on the environment;• Revealed preferences: GM growers have higher trust in agricultural agencies and in scientific research. On the other hand, they are more environmentally skeptic;• Stated preferences: the propensity to adopt GM seed (specially Bt) are positively affect by area, trust in scientific research, knowledge about GM seeds and environmental skepticism. Moreover, farmers tend to be averse to

changes;

Thanks!

Introduction Background Material & Methods Results Conclusion 13/13


how attitudes affect farmers’ preferences for biotechnology: the case of corn growers in brazil

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