An Economic Analysis of Bio-major’s Patents of Farmers’ Seed Usage in the Midwestern United States: Examining Genetically-Modified Soybeans

Abstract

The paper discusses how genetically-modified (GM) seeds containing patents affect benefits for bio-majors (large seed corporations) and farmers based on interviews with actors in the GM seed supply system. The first analysis indicated the importance of the patents system for bio-majors to recover investments when farmers replant bio-majors’ seeds. The second analysis, based on a field study, revealed that seed suppliers in the GM seed system can enhance the benefits for bio-majors and of farmers who purchase GM seeds in the market. In conclusion, the role of seed dealers is indispensable in achieving the optimum resource allocation, to maintain the beneficial patent system for bio-majors and farmers.