Giannini Foundation of Agricultural Economics

Rice production in California is intensive in input usage. Weed resistance has led to growing chemical usage and has raised costs for many rice producers in California. In recent years, widespread adoption of genetically modified (GM) soybeans, corn, canola, and cotton has provided growers of those crops with new production alternatives that reduce chemical usage. But GM rice has not yet been approved for commercial production in California or elsewhere. One reason that GM rice production has been delayed is that this new technology is controversial. In California, environmental groups and organic rice farmers are opposed to any cultivation of GM rice in the state. We estimate the potential economic impacts of commercialization of GM rice in California. Our findings suggest that this new technology would most likely benefit the California rice industry and offer significant economic advantages to growers.