Potential Benefits and Risks for Farmers and Rural Communities

The report examines the economic framework of the emerging pharmaceutical crop industry, arguing that while proponents claim significant rural benefits, these are largely unsubstantiated projections. It finds that the primary economic gains are likely to accrue to pharmaceutical companies rather than farmers, who will face limited bargaining power and high risks associated with food supply contamination. The document highlights that the industry's success depends on achieving virtually zero risk of commingling pharma crops with food and feed supplies, a requirement that may significantly increase production costs and offset projected savings.

• The projected economic benefits of pharma crops for consumers, farmers, and rural communities are tentative and do not sufficiently account for the risks to the food supply when the same crops are used for both food and pharmaceutical production.
• The primary source of potential benefit—reduced drug-production costs—may be partially or fully offset by the high costs of containment required to protect the food system from contamination.
• Farmers are unlikely to be major beneficiaries of the pharma crop industry because they lack bargaining power against pharma companies and the total acreage required for the industry is very small compared to commodity crop acreage.
• The largest economic gains from pharma crops are expected to go to the pharmaceutical, biochemical, and pharma crop companies that hold the patents for the technology.
• Rural communities will only see significant benefits if the industry attracts substantial research contracts for private firms and universities, or if pharmaceutical processing plants are located locally.
• Accidental commingling of pharma crops with food or feed supplies poses substantial economic risks to a wide range of stakeholders, including other farmers, livestock producers, grain exporters, and food retailers.
• Despite approximately 15 years of research and field trials, the FDA had not approved any medical drugs derived from pharma crops as of late 2005.
• Corn is the most preferred host crop for pharmaceuticals due to its low production cost, ease of genetic modification, and seed storability, followed by soybeans and tobacco.
• The report notes that some major biotech players, such as Monsanto and Novartis Pharma, have shifted focus away from pharma crops toward other methods like traditional fermentation.

APA

Wisner, R. (2005). Potential Benefits and Risks for Farmers and Rural Communities. Union of Concerned Scientists. https://www.ucs.org/sites/default/files/2019-10/ucs-economics-pharma-crops.pdf

Chicago

Wisner, Robert. Potential Benefits and Risks for Farmers and Rural Communities. Union of Concerned Scientists, 2005. https://www.ucs.org/sites/default/files/2019-10/ucs-economics-pharma-crops.pdf.

Wikipedia

{{cite report |last1=Wisner |first1=Robert |title=Potential Benefits and Risks for Farmers and Rural Communities |publisher=Union of Concerned Scientists |date=December 2005 |url=https://www.ucs.org/sites/default/files/2019-10/ucs-economics-pharma-crops.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wisner2005potential, author = {Wisner, Robert}, title = {{Potential Benefits and Risks for Farmers and Rural Communities}}, institution = {Union of Concerned Scientists}, year = {2005}, month = dec, url = {https://www.ucs.org/sites/default/files/2019-10/ucs-economics-pharma-crops.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }