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Abstract

Dollar losses beyond the farm gate resulting from the entry and establishment of an exotic crop pest may far exceed the direct losses farmers incur. This case study uses an econometric-simulation model to estimate the benefits to U.S. agriculture of preventing entry or establishment of the exotic soybean pest, Phakopsora pachyrhizi Sydow. Seven scenarios with different disease losses in different soybean-producing regions are simulated. Productivity losses caused by the disease generally elevate growers' income levels because commodity price increases outweigh production losses for most growers.

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