ECONOMIC IMPACT OF CANCELLING PESTICIDE X USE ON SOYBEANS

The yield reduction and increase in cost of production due to the cancellation of pesticide X is estimated to result in a 8.39 per cent increase in the price of soybeans. A single product (soybeans) supply-demand model was used to estimate the impact of cancellation. The net impact upon producers is estimated to be a reduction of profits of $106.8 million. The Lake States and the Corn Belt realize an increase in profits while other regions suffer losses. The reduction in consumer welfare is estimated at approximately $1.2 billion for domestic and foreign consumers ($3.55 per capita for U.S. consumers). The implications of the major simplifying assumptions used in the model are discussed briefly.


Issue Date:
1981-07
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/279379
Language:
English
Total Pages:
21




 Record created 2018-10-31, last modified 2020-10-28

Fulltext:
Download fulltext
PDF

Rate this document:

Rate this document:
1
2
3
 
(Not yet reviewed)