Pesticide supplies for the 1978 crop season appear ample for all major uses. Production is expected to be up about 3 percent, but inventories are off about 1 percentage point. Net supplies are expected to be up about 2 percent overall. Insecticide supplies are up about 5 percent, but herbicide supplies are expected to be off about 2 percent. Pesticide prices dropped 5 to 9 percent last year. Although adequate supplies of pesticides are exerting continued downward pressure on prices, prices are generally expected to hold at last year's levels. World pesticide use is expected to increase nearly 50 percent from 1974 levels to those projected for 1984, with proportional increases for the developing nations far exceeding those for the developed nations. Supply estimates for this report are based on surveys of pesticide manufacturers and distributors. Demand estimates are based on farmers' planting intentions for 1978 and on data on pesticide use.