The Effect of Biotechnology and Biofuels on U.S. Corn Belt Cropping Systems: Updated Version

The effects of transgenic crop and federal biofuel policy on state-level cropping patterns in the Corn Belt region are investigated (2000-2012). The literature links the expansion of corn acreage to the supplanting of small grain and hay acreage in this region. Empirical evidence generated by a random intercept model with fixed effects indicates that the intensification of corn acres planted was positively impacted by biotech advancements in energy and agriculture. This suggests producers are moving away from diverse cropping patterns and the rotational practices associated with a diverse crop planting strategy. However, the empirical evidence suggests that the effects of these biotech advancements on producer planting decisions are heterogeneous across states. Thus, future policy changes affecting producer corn production decisions will not be uniform across States.