This paper presents an attempt at considering several interactions between a pesticide policy and a related income stabilization policy. The illustration used is the evaluation of the economic impacts of a ban on the use of toxaphene for the production of wheat. The interrelationship between this policy and target prices is illustrated. In the past, the income supplements produced by target prices were viewed as a means of moderating the effects of short-run price fluctuations. This paper illustrates how target prices also may moderate the effects of changes in the cost of production due to pesticide regulations.