Journal of Agricultural and Resource Economics
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Scouting is the most widely used integrated pest management technique adopted by U.S. growers. This study applies an implicit demand formulation of the Lichtenberg-Zilberman damage abatement model to data from a survey of Maryland field crop growers to examine differences in pesticide demand between growers using scouts trained and supervised by extension and those using chemical dealer employees or scouting themselves. The results give partial support to those skeptical of the quality of scouting by farmers themselves and by consultants working for chemical dealers. Soybean growers using extension-trained scouts had significantly lower pesticide demand than those using chemical dealer employees or scouting themselves. However, no significant differences were found in the pesticide demands for alfalfa, corn, and small grains.
While there is current interest in reorienting agricultural policy toward environmental and resource conservation goals, relatively little is known about the influence of cost on conservation adoption decisions or about how farmers combine multiple practices into an overall conservation package. Using farmer survey data combined with information on standard unit installation costs, this study estimates latent demand models for seven on-farm conservation practices. All of the practices exhibit downward-sloping demand. Topographical variations in adoption conform to expectations. The estimation results suggest that cost sharing should have substantial effects on the adoption of several practices, and indicate strong complementarity among others.
A dynamic framework is presented for analyzing regulations affecting the use of spoilage-reducing inputs with potential negative environmental effects, such as pesticides, growth regulators, chemical preservatives, and irradiation. Such regulations change intertemporal consumption patterns as well as total output. Consumers may benefit from restrictions on storage technology, giving them a reason to support regulation even when it may not be warranted to correct environmental externalities. Static analyses do not take into account changes in intertemporal consumption, and thus may give misleading depictions of the effects of imposing new regulations. Implications of the framework for development and trade policy are discussed, as are extensions to cases of uncertainty and multiple time periods.
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