Market level economic impacts of modified soybeans

Introduction of biotechnologically modified soybeans will have significant impacts on the US soybean and associated industries. However, technical trade-offs of yield and quality attributes make it difficult to determine which modifications offer the highest potential pay-off and warrant the greatest emphasis in research, development, and, ultimately, market development. In this study, attention is focused on soybeans with modified protein and amino acid compositions where the primary end-use is livestock feed. A generalized dynamic simulation model combining a linear programming model and an econometric model allows for market interactions between soybean and soy-product industries, the livestock industry, and other closely related crop sectors. Results suggest all selected new soybeans promise significant welfare gains.