Mexico’s GM Corn Ban Will Cost Farmers Billions

A Mexican presidential decree to ban genetically modified (GM) corn in 2024 would have severe economic consequences for the U.S. and Mexican economies. A study from World Perspectives, Inc., says the move will result in a loss of billions for America’s farmers and higher prices for Mexican consumers. The net economic loss for the U.S. corn industry in the first year of the ban would be $3.56 billion. The U.S. ethanol industry, including Distillers Dried Grains with Solubles (DDGS), would incur a net loss of $521.5 million after accounting for gains from lower GM corn prices. Overall, the U.S. economy would lose $73.89 billion in economic output. During a ten-year forecast, the GM corn ban will increase the cost of corn by an average of 19 percent. That will inflate the cost of most foods and other goods for Mexicans. Poultry meat prices will jump by 67 percent because of a 13.7 percent increase in the cost of feed.

Editor’s Take:

Such a move by the Mexican government would have a serious impact on U.S. corn markets. It would also prove disastrous for Mexican consumers. And, in reality, GM crops comprise the vast majority of what is planted today. They have a long track record now and have not proven harmful to humans, animals or the environment. So, one has to ask, what is to be gained by such a move? More inflationary pressure is not what consumers in Mexico need any time soon. And, placing U.S. farmers at a market disadvantage with one of our biggest and best customers would not be in anyone’s best interest. In the end, let’s hope that diplomacy can overturn this decision and cooler heads will prevail.