Abstract
The results of a two-year survey of smallholders in Makhathini Flats, KwaZulu-Natal show that farmers who adopted Bt cotton in 1999–2000 benefited according to all the measures used. Higher yields and lower chemical costs outweighed higher seed costs, giving higher gross margins. These measures showed negative benefits in 1998–99, which conflicts with continued adoption, but stochastic efficiency frontier estimation, which takes account of the labor saved, showed that adopters averaged 88% efficiency, as compared with 66% for the nonadopters. In 1999–2000, when late rains lowered yields, the gap widened to 74% for adopters and 48% for nonadopters.
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