Impact assessment of Genetically Modified TELA® Bt. maize variety adoption on yield and household income in South Africa

The agricultural technology has the potential to ensure increased yields as genetically modified crops have improved varieties such as drought tolerance and pest resistance traits. However, the rate of agricultural technology adoption amongst the African farmers is sluggish, mainly due to the unknown impact associated with GM seeds technology. In 2016, TELA® Bt. maize was introduced to the smallholder farmers in SA and have been producing the variety since. Yet, no study that has been conducted on the impact of the TELA® Bt. maize technology adoption on yield and income, hence, a need for such a study. The primary data collected from 289 maize farmers were analysed using descriptive statistics, gross margin and Propensity Score Matching approach. The results indicate that TELA® Bt. maize yielded 61.1% more output compared to non-TELA® Bt. maize farmers. The gross margin analysis showed higher incomes for the TELA® Bt. maize farmers (R2 834.93) compared to R2 124.96 for the non-TELA® Bt. maize farmers. The Propensity Score approach indicated that that gender, years in farming, credit and market access had a positive and significant influence on the adoption decision of the TELA® Bt. maize technology. However, extension services access was found to have a negative and significant impact on the adoption of TELA® Bt. maize technology. The Average Treatment Effect of the Treated indicated that adoption of TELA® Bt. maize had a significant and positive impact on yield and income. The study therefore recommends increased awareness of the GM seed technology benefits to farmers.